Knowing your audience is probably one of the most important rules of marketing, which is why a DMP is an integral part of any marketer’s work. Of course, something that significant comes at a price but it’s well worth the cost.
How Much Does a DMP Cost? On average, a DMP can cost you anywhere from $1000 to $6000 per month.
Read below to find out more on what DMPs actually are and what influences their cost. We will also dive into whether or not your business or agency needs to invest in them.
What is a Data Management Platform?
A DMP or Data Management Platform is used by marketers to identify different audience segments that they later use for their online campaigns. It essentially helps marketers collect data from various sources allowing them to easily analyze and navigate through patterns of consumer behavior.
When marketers use a DMP, they can send the target audiences personalized messages that correspond to the choice of each customer. If the data is not flawed, then each personalized message or online campaign has the potential to increase the sales of a product or service.
DMPs are simple to use because most of the time you don’t have to deal with the data yourself. Instead, the DMP will choose the most relevant data for the specific audience that you want to target. For example, a DMP can show you if your target audience usually makes mobile or computer searches. Once you learn about their preferred method, you will know how to adjust your strategies.
With this said, there are also different types of DMPs, and some are a bit more complex to use because they have more features or can handle larger data and provide more details.
How to Choose a DMP for Your Business?
There is no one strategy or principal that you can use to choose a DMP for your business or client. It varies on the type of organization you are overseeing and the path you want to pursue. A general rule to follow is to identify your goals to understand whether you need a DMP or not.
Here are three broad business categories, for whom DMPs can be of use:
- Marketing Companies
- Advertising Agencies
If your business operates in any of these niches, more often than not, you will need a DMP. Let’s take a separate look at each of these categories.
If you own a marketing company or are a marketer, you can use the DMP to identify your most loyal and valuable customers. You can learn more about their interests and garner more reliable feedback on your products and services to meet their varying needs.
With DMPs, you have cross-platform or multi-channel advertising that can easily target the audience segment you opt for. For you, as a marketer, a DMP can help increase the range and accuracy of your target audience both horizontally and vertically.
So, when choosing a DMP, take a look at the possibilities that it opens up for your clients in any industry or niche.
If you are working or running an advertising agency, then the purpose of a DMP is slightly different. Instead of using it to learn more about your target audience, your main goal is to collect as much data as possible. This is done in order to identify new possible customers that you or your clients can target in your online or media ads.
Here, you need to choose a DMP that offers you not only 1st party data but also offers you a chance to receive and review data from 2nd or 3rd parties to gain more insight for your future projects.
If you are a publisher, then you need a DMP that will give both general and more contextual information about your potential clients, customers, and audience. This information can range from whether your market prefers mobile or desktop hardware to how they respond to specific content.
You will need this to better understand which factors make a published ad more appealing for the customers. You can later share the collected data with marketers and advertising agencies, who, based on your data, will know how to conduct their campaigns better.
What Should Your Business Consider While Purchasing a DMP?
There are several things, mostly depending on the type of business you run, that you should consider when purchasing a DMP. However, some points are universal and apply to almost all types of businesses that need a DMP for their operation.
Here are 7 things to look at, while considering a DMP for your business:
1. Support From Your DMP Contact
2. Organization of Data
3. Audience Development
Let’s take a look at each in more detail.
- Support from your DMP contact
DMP implementation is not an easy task, though it mostly operates on its own once installed, you will need a team that is willing to work with you to solve all the flaws or system bugs that arise throughout the DMP’s operation. So look for a provider or seller with an available support line.
- Organization of Data
You need to ask yourself whether the DMP you’re purchasing can aggregate and organize data from every source that is available now:
- Broadcast Media
- Mobile phones
It is essential to know if it can gather data from offline or online sources and if you can manage multiple sets of data in your DMP.
- Audience Developing
You also need to understand whether your DMP can help you identify the layers of demographics that you want to target by presenting you with their consumer behavior or general interests. Sometimes, you will also need a DMP that will allow you to introduce 3rd party data to allow for a more holistic understanding of your audience.
- Retargeting Existing or Interested Leads
Once you garner a certain amount of interest, then instead of fishing for different audiences you can concentrate more efforts on retargeting existing leads to increase your chances of success. This is one of the most integral aspects of a DMP. Doing so will allow you to build off of the data you already own and increase your conversion rates at the same time decreasing the cost per customer acquisition. This will also help ensure consistency and precise timing during your campaigns.
- Optimization of Campaign
You also need to take a look at what features your DMP has that can help you improve your campaign either manually or automatically.
For example, you want to know whether your DMP is capable of identifying the audience that is most probably going to engage with your campaign or purchase your product. A good DMP should also be able to show you which media channels are performing better.
- Customization of Content
While purchasing a DMP, you should also consider whether it can allow you to link insights from your CRM (Customer Relations Management) for providing customized content for the customers that visit your website or engage with your ads and campaigns.
Last but not least, you need to understand whether the DMP you are purchasing is flexible enough to fit in the framework of your objectives. While you may have a list of goals your plan is likely going to derail as the campaign goes off. When you encounter sudden challenges you need a DMP flexible enough to take note of changes, to provide for a more well-rounded approach.
So, choose a DMP that can manage many tasks and help you whenever you’re in need.
While you can definitely opt-out for a cheaper DMP at around $1000 you may face challenges when it comes to growth, expansion, and precision. If you can afford it, go for the higher end version at around $6000 which strikes a nice balance between price and the various benefits you can expect to get from the DMP.