Data Management is a process whereby systems of absorbing, storing, organizing, and maintaining data created and collected by any organization, are set up. For any organization, it is of utmost importance to ensure that there is proper data management, so that crucial data is protected and never lost. Data Management in the context of DMP, involves managing 3rd party data.
Data security is an important element that makes up data management which aids in the safekeeping of people and organizations from data loss, breaches, or thefts. Modern businesses deploy several analytical programs to get better insights into making fact-based decisions, and future strategies, through case appropriate data management. Data Management in the context of DMP is not allowed to store Personal Identification Information.
The enormous growth of advanced data technologies has ensured that data management remains among the most demanding business differentiators for enterprises globally.
As per general data management trends in 2020, according to IDC (International Data Corporation), high-speed cloud service providers would enable Data as a Service (DaaS) to be available to a larger user base and that 90% of large enterprises will be engaged in revenue generation from DaaS. Further, more than 40% of data-based tasks are set to become automated and offer higher productivity.
Data Management Platforms are software systems that are harnessed for collecting, storing, organizing, managing, and interpreting data, from multiple sources.
Data Management Platforms not only sort and analyze data but also give useful insights
into customer demographics, psychographics, including what draws customers and influences them to make purchases, and helps businesses create strategies that best suit their target segments. A few good examples of data handled by a Data Management Platform are GPS derived locations, audience data from multiple channels, app usage data, consumption data from connected devices (IoT) among others.
DMP vs CDP
A commonly asked question is what is the difference between DMP and CDP as they both seem to have very similar underlying technology components. The key difference lies in their usage.
CDP is primarily focused on managing company owned data i.e first party data. DMP focuses on 3rd party data. Very often they integrate with each other. One of the main differences between a CDP and DMP is a CDP is all about managing an individual customer with a single profile, while a DMP is about managing segments of customers with anonymous profiles. DMP can not store Personally Identifiable Information as they are more about sharing audiences.
DMP is primarily used for ad targeting and its primary users include advertisers and marketing agencies. CDP is used by marketers for various marketing activities including campaigns, customer communication, smarter engagement.