How to Use Data Management Platform (DMP) the Right Way?

What is Data Management Platform?

Data Management Platform (DMP for short) is a type of centralized tech platform that gathers data from various sources, segments it into predetermined categories, and further transfers it to attain the marketing campaign’s specific goals.

How DMP works in Ad Tech

The primary purpose of DMP in Ad Tech operation is to keep a firm grasp of the campaign’s proceedings. The use of information gathered by the Data Management Platform provides additional agility to the Ad Tech operation — it improves the definition of the target audience and subsequent ad distribution.

  • Manage and adjust ad campaigns;
  • Provides stats that can help to increase conversion rates, improve user experience, and establish the brand;
  • Makes effective use of ad budget with a higher probability of return on investment;
  • Personalize content shown to the users to increase the probability of conversion and establish the brand;
  • Study the target audience’s behavior and preference to create a credible user profile for more efficient targeting.

What types of data DMP collects?

Data Management Platform is capable of collecting data from the selected source. All you need to do is to define what kind of information you are interested in.

  • Web / App data
  • Data coming from the analytics tools (such as Google Analytics)
  • CRM
  • Transaction systems
  • Subscriptions
  • Audience information

Self-Hosted or Third-Party?

The difference between custom and third-party data management platform is rather peculiar. It all depends on the need of your business operation.

Use of DMP in Ad Tech


Retargeting delivers relevant advertising content to the users based on a digital footprint and collected user data such as preferences and on-site behavior.

Data Analytics

You can’t build an ad campaign without knowing how your target audience perceives your brand, behaves on your websites, and consumes your ad content. That is what Data Analysis is for.

Audience Research

Audience Research is such a significant element of Data Analytics that it deserves a different spot.

SEO Optimization

Another vast area where the Data Management Platform is instrumental is SEO optimization. How? The whole audience research thing can be used not only for more efficient ad content delivery for your internal needs.

  1. Content — a better understanding of what your target audience is interested in;
  2. Keyword Research — profiles can help to find more fitting keywords for content;
  3. Link Building — profiles can help to find better spots for guest posts;

Data Monetization

There is also another method of effective use of DMP. You can just gather information and sell it to other companies — i.e., you can be a third-party data provider.

How DMP works?

Data Collecting

The initial stage of DMP operation is to collect data from the selected sources (i.e., first-party) and implement data from second and third-parties.

  • via Tags — with a little help of Tag Manager (Google’s is a fine one), you can insert snippets of code into a website’s pages that will be tracked according to determined function;
  • Cookies via Cookie Syncing — mapping and unifying user’s ID over the multiple platforms
  • Pixel Tracking
  • Integration with second-, third-party data suppliers;

Data segmentation

The next stage of DMP Operation is Data Segmentation. Once information is gathered — DMP organizes it according to the present taxonomy. It includes a variety of parameters. Some of them involve user’s personal data. Others have data regarding their interaction with monitored entities.

Data Analysis

Once data is segmented, it is processed to construct a clearly defined customer profile for targeting.

Data transfer

Once information is gathered, segmented, and analyzed — it can be transferred to ad exchanges, Supply-Side Platform (SSP), and Demand-Side Platform (DSP), which will deliver the goods to the advertisers.

Challenges with DMP


Before the whole data management starts — you need to set up the connection between sources. Your ultimate goal is to maintain a steady transmission of data from multiple sources without missing a beat and stumbling into a mess.

Dealing with Scalability

DMP is as good as its scaling capacity. That is one element essential to its successful operation. The thing is — standard Ad Tech operations consist of millions upon millions of various events happening on sites. And every single bit of this information must be collected.

Data Storage

Managing data is one thing. But you also need to store it somewhere, and that is a challenge. You have an infinite stream of incoming information. It is continuously collected, processed, segmented, and transferred. You have data in active use and data that was already used. All these things have to be stored safely.

Refining Automation

DMP deals with large quantities of data from various sources — which creates a necessity of creating a set of automated scenarios that will handle the operation with its settings. We’re talking about millions of events per second — there is no chance a human being will be able to deal with it manually.

Woes of Data Analysis

The thing with Data Analysis is that you have to know what you are studying data for in the first place to make use of it. If you don’t know what kind of data you need — you will end shooting in the dark, which is not exactly the most effective use of time and money.

Personal Data, Privacy & GDPR

The full adoption of GDPR is a game-changing moment for the Ad Tech industry.

  1. What kind of data are you going to collect and from what sources?
  2. Where is collected data going to be stored? How long is it going to be held?
  3. Who will have access to it?
  4. Are third-parties involved in the operation privacy-compliant?


At the moment, Data Management Platforms are one of the most effective ways of delivering quality ad content to the target audience.



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