Contributed by Melissa Hefner, Director, Account Strategy, North Central Region at Goodway Group
WHAT IS A DMP?
A Data Management Platform (DMP) is a technology that aggregates, houses, sorts, analyzes, and finds connections between massive amounts of online, offline, first-party, second-party, and third-party data fed to it.
WHY USE A DMP?
A DMP makes data accessible and actionable. It can create fuller customer profiles by centralizing data sets that otherwise would be siloed. Then by linking into a DSP, the knowledge from the connected data in the DMP can be activated. This can boost advertising ROI by more accurately targeting the right person with the right message.
HOW IS A DMP USED IN PROGRAMMATIC?
- Segments customer attributes for more accurate targeting
- Builds look-alike segments for prospecting new customers
- Expands campaign reach by linking first-party data to second- and third-party data
- Delivers hypertargeted messaging to each segment
- Unlocks purchase-behavior insights
HOW A DMP WORKS
Data Collection Data is imported from as many customer data streams as a company has available. Then the DMP organizes each piece of user data and puts it into categories to build individual user profiles. Data Management Once the data is imported and sorted, it can provide great insights about how to segment audiences and determine what targeted messages they should receive. Ad buyers can tell the DMP who they are trying to find by asking it to reach audiences with certain attributes based on the user profiles from step one above, the data-collection phase. Data Activation The DMP is synced up to a DSP. Then the DMP sends real-time instructions about what ads to buy. If ad space is bought, it will decide what message should be served, based on the user profile. Optimization After an ad is bought and served, the result is measured. Those results become more data the DMP will learn from and store. The instructions the DMP is feeding the DSP can be optimized. And the process starts again. An integral part of Goodway Group’s sales-enablement team, Melissa delivers thorough pre-sales research and clever strategy to make clients heroes every day. Drawing from her extensive experience working with full-service agencies in the media world, she truly enjoys helping clients navigate the ever-evolving landscape of digital media, search marketing, and performance analytics.
Value-added Service Designed to Maximize Targeting of Consumers Goodway Group, the U.S.’s leading managed-services programmatic partner to local, regional, and Fortune 500 brand agencies, has developed a value-added proprietary service for their clients to help maximize mismanaged frequency targeting in digital ad campaigns–an issue currently causing marketers to waste approximately four percent of their total spends. When targeting users through typical digital campaigns, marketers can set a daily limit of ads they can serve throughout the day or set a campaign cap of how many ads they can serve over the course of a campaign. However, when marketers use this “set it and forget it” model of serving ads, they’re missing out on a portion of prime impressions and possible conversions–because many who are repeatedly served have no purchase intention. These ads are being repeatedly served to users who have either already been exposed enough times to indicate they won’t take action, or they simply have no intention of taking action to begin with. Yet many marketers continue to serve these non-buyers the same ads because of the “set it and forget it” model, leading to wasteful spending by marketers who aren’t achieving the highest possible conversion rates. In studying this issue, Goodway created an innovative proprietary algorithm solution. The algorithm went through 30 days of development and an additional 30 days of testing to ensure its success in optimizing target audiences. The algorithm is capable of deciding when it’s no longer worth showing the same user another ad impression and when it’s instead advantageous to show a different user with less frequency an additional impression. “Four percent of a digital budget may not sound like a lot,” says Jay Friedman, chief operating officer of Goodway Group. “However, in this day and age, a typical digital ad campaign has a $10 million budget. So $400,000 then becomes a large chunk of the budget that could be used much more effectively.” Goodway Group uses this value-added service to ensure their clients receive the highest conversion rates possible on their digital ad campaigns.
Buyers or sellers? In any market economy, who wins out shifts with economic ups and downs. The digital advertising market is no exception. And today, sellers—that is, publishers—are winning, especially as we’re learning there’s a finite source of quality, viewable inventory available in the open exchange. Now publishers have a great opportunity to re-engineer their inventory to exploit the massive demand out there for quality placements. But how? Read Goodway Group COO Jay Friedman’s ideas in the AdExchanger article It’s a Seller’s Market.
2016 Set to Usher in New Way of Reaching Consumers and Explaining Behavior These days, consumers of media content split their time between all sorts of devices including mobile phones, tablets and desktops, expanding the avenues of target marketing beyond just websites. Targeting users across all of these platforms, called cross-device targeting, allows for precise marketing where individual users spend the most of their time, thereby optimizing campaigns to reach the highest conversion rates. Goodway Group, the U.S.’s leading programmatic media services partner and an industry leader in cross-device targeting, provides need-to-know information on cross-device targeting and why marketers should be implementing it sooner rather than later. The two most important aspects of cross-device targeting that marketers need to know are defined as:
- Audience Targeting: Audience targeting allows advertisers to extend reach and control frequency on all of a users’ devices in any combination. It goes beyond PCs, tablets, phones – reaching users on connected TVs, gaming consoles and across the different mobile browsers and apps. Advertisers can even re-target users that might lead to an impression based on their particular data or by utilizing third-party behavioral data to target new users based on their previous online activity.
- Attribution Reporting: Advertisers can obtain deep insights into users’ conversion behavior by specific device with cross-device attribution reporting. This allows publishers to capture secured conversions, even after the initial ad impression takes place. For example, a user sees an ad on their mobile device, then makes the actual purchase of the advertised product or service at a later time using their desktop computer.
Here’s specifically how cross-device targeting works:
- Companies that specialize in building cross-device graphs continually gather individual consumer data from users’ IP addresses, cookies, time of day visitation, app usage, regular site visits and device IDs.
- This gathered data is then fed through an algorithm, which creates the cross-device graph so that marketers can understand specific device usage as it relates to individual users. As a result, marketers obtain the insight and ability to create customized campaigns with optimal targeting techniques, earning a higher rate of conversion success.
“With cross-device technology, marketers no longer miss a specific target audience or their activities on particular marketing channels,” says Jay Friedman, chief operating officer of Goodway Group. “The cross-device methodology allows marketers to cover all their targeting bases, while attributing both behavioral impressions and conversions.” Goodway Group is currently utilizing cross-device technology with many of their Fortune 500 clients. To learn more, please visit www.goodwaygroup.com.