We have said this time and again: data plays a crucial role in our increasingly digital world. Hence, it should be no surprise that data and its quality are considered the main source of competitive advantage in the AdTech industry.


This is exemplified by the trend of companies acquiring DMPs to help them carry out their work more efficiently, as well as to enable them to offer a more integrated solution to their clients. Examples include Oracle’s acquisition of BlueKai (Feb 2014), Rocket Fuel’s acquisition of [x+1] (Aug 2014) and Nielsen’s acquisition of eXelate (March 2015).


According to Mark Zagorski, CEO of eXelate,

8-10% of Fortune 100 companies currently use a DMP, and the majority of companies will be using a DMP in some capacity within 2 years or so.

But what exactly is a DMP?

Plainly speaking, a Data Management Platform is a platform that allows marketers to manage and understand the vast amounts of data that is constantly being generated by consumers, who are digitilising at a ridiculous pace.

What exactly does a DMP do?

A DMP does 1 (or a combination) of 3 things.

1.     Collects Data

2.     Stores Data

3.     Manages the output of the data

As Millenials, we are extremely well-connected, with most of us being connected on at least 1 device, and an increasing number of us being connected across almost all devices (i.e. smart phones, desktops, tablets, wearable technology, etc.). You can therefore imagine the amount of data that is being generated at any point in time. DMPs that collect data therefore collate first, second and third party data across devices. Google Analytics is an example of such a DMP (but only for first party data).




With so much data being generated, it would cost a fortune to store it. Therefore, it makes sense that the second thing DMPs provide is a cost-efficient storage solution.

Finally, some DMPs focus more on the output of the data. These DMPs neither collect nor store data. Instead, they play much more of a managerial role, by tapping into the pool of data, and helping clients manage and use it more effectively. An example of such a DMP is Krux, which uses sophisticated algorithms to “unlock the value of first-party data”.

So that is what DMPs can do. But what value does a DMP bring to the table? Why are so many companies acquiring dedicated DMPs?

Firstly, DMPs provide an unprecedented level of depth and breadth to the data. This is difficult to achieve if you just have recourse to data from one source, e.g. the data you collect from your own website. DMPs, on the other hand, are aggregating data from millions of people, across millions of devices, whatever the support.

Secondly, through managing the output of data, DMPs are able to suggest new groups of people to target. In yesterday’s post, we had explained the concept of data modeling. This is one such way that DMPs can add value for their clients.

Another way that DMPs can do this is through segmentation, which is the generation of labels to describe groups of people within one’s audience. Examples of segments include age, gender, geographic, or socio-economic groups. This enables much more precise targeting. With methods like data modeling and segmentation, DMPs are therefore able to give their clients a return on their data.  

Following from all of this, there is the final benefit of scale.

According to Mark Zagorski, “scale breeds accuracy”. The more data you can collect and access, the more times you can look for anomalies between data sets. Evidently, with so much data available, sorting through it and making sense of it is bound to be difficult. In order to make the most of lookalike modelling, and to ensure it works, one needs to constantly assess and look for anomalies within the data.

Here at the Media Trader, we pride ourselves on being ahead of the curve. We know the crucial role DMPs play in the AdTech industry, and have a strong partnership with Skylads, a digital advertising software company with a dedicated DMP. Therefore, we are confident that we can manage all forms of data, no matter how complex, to generate the best possible results for our clients.

P.S.: 20 days to go until the Web summit, Dublin. See you there!