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A DMP is a kind of data warehouse that sorts and stores information that is subsequently used by marketers and advertisers.
Data Collection
Data Classification
Ad Network Integration
DMP Analytics
The most typical use is to house structured information from a number of different systems and organize it. Data is either at the customer level (if it’s about your customers or prospects) or at the cookie level (if the person is unknown). Information about what customers have bought etc. is combined with demographic data to build segments or "audiences".
The basic idea is that this information about your various audiences is matched up with data provided by data vendors to help you find new prospects which look much like your existing customers. You are essentially buying a set of anonymous cookies that match up with your segments to buy ads against.
Data Management Platforms (DMP) are one component of what is often referred to as "Ad Tech" or digital advertising technology. In addition to DMPs, Ad Tech includes things like:
Ad networks and ad exchanges (for automated buying and selling of ad inventory)
Ad Servers that that can host and serve display advertisements
Retargeting tools for showing ads to users based on actions recently made on the web
Demand side (DSP) and sell side (SSP) platforms which make it easier for advertisers to buy, and for media outlets to sell, display advertising. This can be on ad exchanges, ad networks, and other available inventory sources.
Demand-side platforms are most often used by advertisers and agencies to enable programmatic buying of display, video, mobile and search ads. These ads are purchased in a real-time auction, through a process known as real-time bidding, which happens automatically in milliseconds.
In reality, DMPs and DSPs are often sold as a single product. Many DSPs, for example, also include a DMP.
DMP platform pricing models vary based on the inclusion of different features.
Pricing involves many factors like monthly uniques, impressions, traffic, may include augmented third-party data, services offerings, advanced algorithmic modeling, etc.
As a rule of thumb, a minimum expenditure of $5,000 per month is typical.
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