DMP and CDP fundamentals (LEARN MORE IN just 5 MIN)

Published on
April 11, 2023

What is the data topic all about and how does it relate to the advertising world? Once you show an ad to a user and he interacts with it, but doesn't convert in to a sale, you don't see a return on your investment. It's always good to reach out to that user again. First you need to define what your target audience is and based on that show the ad to that user more often. You browse a product on the internet, then you visit a totally different website, and you get ads for exactly that first product. The basis for that are the technologies known as the DMP and CDP. DMP - Data Management platform - focus on unknown users. No personal information is known and it focuses on identifiers. If you browse a specific website, you become known as the user with the ID-ABCD and once you interact with a specific ad than the advertiser knows that the user with the ID- ABCD has shown interest in his product. That information is stored in the DMP and can be used for remarketing use cases. You can use it for example with segments. The CDP - customer data platform - focuses on customers. It stores information about your customers and focuses on known users. In the CDP you can store real hard facts about your customers such as their name, what product was bought previously, and you can use this to customize the content for this user. You integrate the CDP with your website or App, and you identify the user for example with a log-in. The user logs in before purchasing a product and you can use that information to personalize content along the customer journey of that user. Both systems, the DMP and the CDP, give you the ability to work on the data from your online marketing campaigns.

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