How to Choose a Data Management Platform

Check out this recent article from Mashable on data management platforms:

Demand-side platform (DSP) is one of the hottest media trends right now, but what most people fail to understand is that it is merely a buying mechanism. The real value lies in the data management platform (DMP), which acts as the brain that tells the DSP which ad impression to buy. In the Western ad tech ecosystem, third-party DMPs like BlueKai serve as the central nervous system that various DSPs plug in for intelligence. In some instances, many Western DSPs such as Turn will often combine their own first-party data with BlueKai’s third-party data to create custom audience segments.

The Chinese Way: No Third-Party DMP

The Western ad tech ecosystem is the ideal way of operation. However, the picture looks quite different in China.

Even though there are quite a few DMP companies in the Chinese tech ecosystem, none of the major DSPs in the China market are actively using them. What happens instead is that all the DSPs use their own third-party data collected from direct publisher relationships. With no de facto standards in third-party DMP data, Chinese marketers have zero transparency in knowing the exact data that is being used for targeting. Hence, the local DSPs are all moving toward a strategy of a first-party DMP offering to prove their value add, and most of all for vendor lockdown. In the end, whoever controls the client’s data will control the bulk of the marketing budget. To make things more complicated, agency-trading desks (ATD) and third-party tracking vendors like Miaozhen also have a DMP offering. Of course, marketers have the option of hosting their own DMPs internally.

Everybody is offering a DMP, which one should you choose?

There are advantages and disadvantages for each decision. The choices are:

  1. DSP hosted DMP
  2. Third-party tracking hosted DMP
  3. ATD hosted DMP
  4. Internally hosted DMP

DSP Hosted DMP

    • Advantage

      : Many DSP vendors like to bring up the selling point for the DMP is the lack of data loss, because the first-party cookies that were collected could be directly mapped to the DSP inventory. This allows advertisers to maximize the use of their cookie pool for tactics like retargeting.

    • Disadvantage

      : The issue with this model is data security and transparency. For example, many DSPs may be tempted to use cookies collected from one brand’s website for retargeting on a direct competitor’s campaign. If the data is hosted and managed by the DSP, actions like that will go unnoticed and unchecked.

Click here to read the full article.

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