In my last post, I gave an overview of a Data Management Platform. In this article, I’ll go through some typical marketing scenarios that are realized using a DMP.
- Frequency Capping: Marketers use this feature to
set a cap on how many impressions should users be exposed to for a particular
campaign. The idea behind this is to not show the same campaign to users if
they’ve seen it multiple times. As an example, the screenshot below taken from
Adobe's DMP that shows a report where conversions start to drop once users
see the same ad more than 2 times. The advantage of this feature is to
save marketing dollars and not pay extra for potentially wasted impressions as
users tend to convert in the first 2 interactions as per this report.Source: https://marketing.adobe.com/resources/help/en_US/aam/optimal-frequency.html
- Prospecting or Lookalike Audiences: Prospecting allows marketers to reach out to new audiences who wouldn’t have visited their site. This is where a DMP's connection to the 3rd party marketplace allows marketers to evaluate new audiences and overlap them with their 1st party data. This feature is called lookalike modeling where marketers pick a baseline 1st party attribute (such as users who bought something) and run that against 3 party audiences to see which new 3rd party audiences exhibit the same behavior. Once these audiences are identified, marketers can purchase these audiences at a premium and factor this cost as part of their marketing budget and look to further increase their overall CTR and conversion rate.
- Media Suppression: Media suppression or exclusion in the marketing world allow marketers to not display an ad to certain group of people who need to be excluded. Simple examples of exclusions can be at a geographic level or channel level that can be executed directly in the Demand Side Platform (DSP). A DMP however, is able to fulfill other use cases where a marketer would want to exclude users who already purchased something on their site or might have submitted a lead. In this case, marketers can build an exclusion audience in the DMP comprising of 1st party onsite behavioral data and share it out with a DSP for execution.
- Content Personalization: Personalization in simplest terms means serving up content tailor-made for customers based on their browsing patterns. A few examples of personalization, which are accomplished using a DMP are as follows:
- Combine 1st party CRM data to gather demographic and past purchase information about a user and serve them discount offers to buy something again.
- Personalize content based on product pages that users have visited in the past and deliver similar content to encourage them to go deeper into the purchase funnel. An integration between site analytics and an A/B Testing tool is required but a DMP can be used to find additional prospects that can be combined with 1st party site data.
- Other simpler examples are serving personalized content based on city, weather, time of day so the opportunities are endless depending on your site.
- Retarget users who added an item to their cart but didn't purchase. In this, first party data around cart add is shared with the retargeting platform via a DMP.
- Retarget users who opened an email but did not convert. In this, data from the email captured in the DMP integrated with other data sources is sent over to the retargeting partner.
We covered many aspects of digital marketing as individual use cases but in reality, they need to execute in tandem to get the most value from a DMP. Retargeting users and personalizing the website to show similar ad copy content is a great example of these done in tandem. Successful execution of these use cases will allow companies to reap the benefits of what a DMP has to offer as the possibilities are endless. Are you leveraging your DMP to act on these use cases?