I’ve written before about the changing digital advertising landscape, the shift in consumer behavior and the explosive advances in technology. These have all contributed greatly to the massive increase in data volume, the need for marketers, publishers and vendors to access information and create insights regarding actions and activities of consumers. There have been numerous articles, panels and events dedicated to “Big Data” but finally there is a comprehensive study that outlines the role and, most importantly, the challenges facing data management platforms (DMPs).
On Monday the Winterberry Group, along with the IAB, 24/7 Media and other sponsors, released a white paper defining the DMP, its role in organizations and the challenges facing the DMP and those companies that build and sell them. (Full disclosure, 24/7 Media owns a DMP and sells it to advertisers, agencies and publishers.) The study found that 62% of all respondents said they had already implemented a DMP, or have plans to do so within the next year, and 92% see that interest in DMPs (for themselves or their clients) is higher than it was a year ago.
The study identified a few challenges:
1) Internal organizational process
There are significant challenges associated with re-training or hiring staff to take advantage of the new data intelligence. For those companies who have already implemented a DMP, critical steps include; socializing the capability, training staff, understanding that everyone’s role is impacted by this new data and the requirement to continue feeding more and more data into it.
2) No owner of DMP within the organization
DMPs face an uphill battle as clients need to own and control the DMP internally to take full advantage of the consolidated data source. Identifying a clear owner is difficult for many since the DMP draws on information from many departments and its output can be interpreted and leveraged throughout the organization even though the catalyst for a DMP comes from the CMO not the CTO or even the CIO.
3) Lack of clarity of DMPs role among C-level execs
To get approval and long-term funding, the C-suite must fully back a DMP project and ensure that all departments are participating. Given the wide ranging impact, C-level executives need to understand the benefits of a DMP and get a simple dashboard highlighting the results of a well implemented DMP -- from media efficiency to product recommendations, consumer insights to data aggregation.
The increased interest in DMPs is driven largely by the need for better ad targeting and the macro shift to audience buying. Consolidation of disparate data sources and the ability to generate compelling insights informing media and product decisions are also of drivers of this interest in DMPs.
DMPs are here to stay. That is for sure. Their role will continue to evolve but it is clear that with the continued shift to digital, the DMP will become more and more central to everything related to media, consumers and product evolution. What do you think?
The views expressed here reflect the views of the author alone, and do not necessarily reflect the views of 24/7 Media, its affiliates, subsidiaries or its parent company, WPP plc.
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