We’ve talked a fair amount about DMPs (Data Management Platforms) in the past (check out these posts for more) and we’ve covered a lot of the great things DMPs are capable of and why brands should be getting involved.
And we’re not the only ones. You’ve probably read countless blogs, articles and white papers. You know a DMP is the thing your marketing needs. It’ll help you build audiences and communicate with relevance and in real time. It’ll drive efficiencies in media buying and effectiveness in your marketing. So, time to buy one right?
Not exactly… The DMP has been the shiny new toy on the market for a couple of years now and many companies have been slightly stung by rushing off and buying one.
Essentially there are a number of reasons for this. Purchasing a DMP in a SaaS format (Software as a Service) poses some serious obstacles. It’s a long and potentially expensive integration – meaning brands don’t see any ROI for a significant period of time. Alongside the implementation time, organisations have often failed to have some clear objectives and processes in place. They need to know who owns the project – from overall leadership to day-to-day management – and they need to have a clear strategy with clear objectives to measure success against.
To understand how we can make a DMP work we need to dig into and understand some of those issues.
Historically DMPs have been SaaS only. A DMP SaaS solution is a huge commitment with a contract normally lasting at least two years. Implementation is a massive task and requires a huge allocation of resource – all before you see a dollar of ROI.
Because of this a whole new team is required. But how can a brand build a team without a strategy and without existing expertise? It’s a bit of a chicken and egg situation.
According to recent research 59% of marketers have an enterprise marketing strategy, 47% of them have the right tools but 65% of them don’t know how to use them properly. DMP fits this profile exactly.
We have the tools but don’t know how to use them.
Comparisons with paid search
Similar issues arose when Paid Search first became a major advertising channel. We had a complicated ecosystem and process which required direct attention from a skilled group of people. The answer? They went external and selected partners with the expertise who could manage paid search for them.
OK, so further down the line it was possible to bring the capability in house and many brands have done so. However, many organisations continue to successfully use the managed service model to great success and it’s not going anywhere. So why should DMPs be any different?
When you think about it a managed service approach makes even more sense for a DMP than it did for paid search. A DMP is a more complex technology and has the potential to impact a huge range of areas in a business. Getting it right is important so why not mimic the paid search model (at least to get started) and go external?
Looking for a DMP? Find out how we can help you with a managed DMP service.
Experian Marketing Services helps bring brands and customers closer together. Using our own industry data and analytical expertise we can help businesses build up an accurate and actionable understanding of their customers.