How To Increase Revenue By Using Data Management Platform

Data Management Platform (DMP) is a data warehouse hosted in the cloud. If a business starts working with DMP, it begins to collect, sort and store the information it is connected to. It takes the data and translates it into a more useful form which shows trends, insights and statistics. This would allow the marketers, and publishers to turn these insights into actions and use them to inform their marketing campaigns.

If a company runs a campaign that seeks to convert new customers will not be sure to reach the right people. At that time we need to cut down on costs by cutting ads targeted to people who aren’t likely to convert. To make the ad distribution more accurate and efficient, all we need is data. Plethora of data on current and potential customers already exists. The company needs to collect, organize and analyse it and turn that to useful insights.

Revenue can be increased:

The most important benefit of using a Data Management Platform  is to increase its revenue. By using one of these enables you to more accurately target the ads to the right audience which would result in higher response rates, increasing the brand recognition and most importantly higher conversion rates. For a marketer, increase of conversion rates generally means more sales of the products and services which lead to higher revenue.

A DMP provides a better sense of direction when choosing the proper placement for ads and promotional materials which increases your return on investment which you have spent on marketing. For a publisher with a valuable first party data, you can also use a DMP to sell that data to other advertisers opening up for a revenue stream.

DMP can be used to determine which audiences and demographics are converting more often than others. This would allow them to prioritize the advertising budget toward a wider audience or a similar look alike audience that would have a higher chance of converting when compared to non performing audiences. This prioritization can decrease the overall cost per lead and increase their revenue by bringing on more customer for less money.

Optimized cross device campaign management:

Your ad campaign not only reaches the customers on one type of devices unless you target it on that way. There are chances that people may view it on android devices, apple, Macs, PCs and even TV. You must able to view the insights from all the type of devices.

DMPs offer cross device technology which matches the profiles of the targeted audience across screens, so you can reach the right people at the right time on the right screen.

Streamlined data:

Being a marketer, you can able to collect lots of data from a variety of sources. Some of the common channels include e-commerce, email, mobile apps, social media and customer loyalty programs.

DMPs can collect that data and conveniently store it at one place so that you have one cohesive view of your customers across screens and platforms. DMPs process, organize and prepare the information and offers a much clearer picture and a better understanding of your audience, strategies and efforts.

By having all your data organized in one place means your team can. The result is the option to make much more informed decisions across all the aspects of the company.

The main benefits here is that it gives  you a complete control over all your data and  allows you to import the new data as well. Whether you want to store it for later, you can use it immediately or share it with partners since you have all the tools you need.

Leaner budget:

With the DMP, there is no longer a need to “spray and pray” with your advertising that means sending the same message everywhere and hoping it hits the people you are interested in. You can build the audience to retarget the people who have visited your site and purchased your products previously or try to get the consumers who are abandoned the products in their shopping carts on your site to come back and finish their purchase.

Further, you can choose who sees your advertising and can only focus on the most important audience. Overall, this means the reduced ad waste and likely a leaner marketing budget. By cutting out the ineffective ads will make the budget leaner and help improve the bottom line.

New target customers and audiences:

When selling a particular product or service, the main goal is to often find more customers. DMP data can open you up to new audiences and customers via audience extension and look alike modelling. Audience extension is a method of adding on 3rd party data onto your existing audiences to find the additional customers across the internet. For the marketers without a lot of 1st party data, audience extension is a key to growing the size of your target audience. Lookalike modelling is another option which relies on machine learning to find new possible customers most likely to interact with the customers. All you need to do is provide the seed audience of your ideal customers or target and the algorithm does the work to grow your target audience size.

Meet the needs of your customer base:

One-on-one relationship with the customers is not always possible, but you can get to know them better with the right amount of data which is organised in a digestible way. For example, you can learn which of your product or services they value most or you can learn how they react to various promotions and marketing materials and what resonates with them most and drives the most sales.

You can also use your data, search results, social media likes and surveys to predict what new product or services your customers might want.

Accessing the second and third party data:

One of the benefits of DMPs is the ability to integrate first, second and third party data into one system.  For marketers who are looking for high quality sources of data beyond what they already have, second and third party data are necessary to increase the audience sizes. Many Data Management Platforms offer third party data from trusted data companies for purchase inside the platform so that you can add the data directly into the audiences you are building.

Continuous learning:

DMPs are not just solutions to short term problems even it is great for that. It would help the agencies build out the long term agencies.  Companies can use them to solve the immediate problems such as advertising spending which is too high or promotional content that isn’t reach the right audience. But it also uses the information which gathers from the people to help them reach the long term goals.

A company need to optimize the campaign using their DMP which can apply what they learned to future campaigns. The more they learn, the better their future campaigns would be. With a fewer adjustments, they will be successful more quickly. The consistent progress help the company to reach its long term goals.

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