Pulse #2: DMP & DSP
One step closer to creating successful campaigns!
What’s not to love about acronyms? They are short, to the point, they save time, and they certainly make us sound smarter. So, if you want to learn more about DMPs and DSPs, you need to continue reading ASAP.
Along with SSPs (Supply Side Platforms), DMPs and DSPs are two of the key components to programmatic buying.
A demand-side platform (DSP) is a piece of software used to automate the purchase of advertising space. These platforms allow advertisers to buy inventory from different websites and apps, which use different types of targeting such as contextual, technical, sociodemographic and behavioral targeting.
Publishers make ad inventory available through ad exchanges, and DSPs use these exchanges to decide which impressions a particular advertiser should purchase.
But not so fast! Creating successful mobile advertising campaigns take more than just a DSP, as advertisers need to know who their audience is. So let’s bring DMPs into the conversation!
A DMP (Data Management Platform) is a centralized data management platform that allows advertisers to create target audiences by combining data from different sources.
Many times, the problem with an ad is not the ad itself but the fact that it is not reaching the right audience. To avoid this common issue, DMPs help advertisers merge all of their different data sources into a single layer to extract useful information that they can use to reduce their ad spend.
There are four basic components to DMPs:
1. Data collection
2. Data processing
3. Creation of audiences
4. Optimization of programmatic advertising campaigns
What kind of data do they collect?
First-party data — Data from the advertiser’s own website, CRM, social, search, analytics, or any other source of data they may own.
Second-party data — It’s fundamentally someone else’s first-party data, since it comes from a source other than the advertiser’s own audience. Companies with similar audiences often partner up and share their user’s data for their mutual benefit.
Third-party data — It’s data that advertisers can buy from outside sources that are not the original collectors of that data. Basically, these outside sources pay publishers and other data owners for their first party data.
In short, a DMP is used to collect and interpret data so we can then use a DSP to purchase advertising based on that information and save tons of money and resources by targeting the right audiences.
