The Key Differentiators between DMP and CDP

Customers in the marketing industry interact with their service providers via various digital touchpoints and channels. To increase their digital engagement, marketers need to be able to deliver a consistent and seamless user experience. There have been many digital technology platforms over the years that have attempted to enhance the customer experience. However, none of them have been as successful as DMPs and CDPs.

Download MTA’s CUSTOMER DATA PLATFORM 2019 Buyer’s Guide @ https://mta.media/5wdm4

A Data Management Platform (DMP) is an age-old martech tool that has been in use for running acquisition and advertising campaigns. It works mainly on second and third party anonymous data sources. With the help of anonymous cookies, a DMP is used by marketers to improve display ad targeting.

DMPs are usually coupled with demand-side platforms (DSPs) to target ads on user segments set by marketers. These segments are based on a predefined set of rules or criteria which takes into account parameters such as demographics, device type, IP address, etc. Users who fall under each segment are served specific ads chosen for that particular segment by the marketer.

A Customer Data Platform (CDP) is relatively new when compared to a DMP. According to the CDP Institute, a CDP is defined as a "packaged software that creates a persistent, unified customer database that is accessible to other systems." CDPs work on personally identifiable information (PII) or first-party data.

A CDP has the capability to ingest data from disparate sources such as enterprise data, CRM data, website data, transactional data, etc. After adequately ingesting the data, it matches and unifies these data under various user profiles. Once proper data unification is done, marketers are able to view each and every minute detail of each individual customer in one single location. This, in turn, enables them to discern powerful insights into customer preferences and their digital behavior. Empowered by these insights, marketers can deliver personalized ads on a customer’s preferred channels, thus enriching their digital experience.

Research from Market Research Future estimates that the global DMP market will approximately reach $3 billion by the end of 2023. On the other hand, the global CDP market is estimated to reach a similar $3.2 billion by 2023, according to Research and Markets. Looking at these numbers, it is quite clear that the future is poised for cut-throat competition between these two data management technologies.

Read More https://mta.media/lc6vj