Data Management Platform (referred to as DMP) could hold different meanings to marketers. It sounds like an expensive tool that makes it possible to excuse narrowly targeted campaigns.
We have been creating private DMP for our clients but it always starts from asking our clients “Why do you need a DMP?”. Because the whole process and what we deliver depends on the answer to how clients answer the question.
In this article, we’d like to cover the following key points to consider in building a Data Management Platform
In this data flow chart, we’ll be referring to the #3.
Our simplest answer is “to do more in fewer resources and time”. For marketers who don’t have DMP, they could have a manual process to handle data workflows.
It looks easy to automate the whole process. However, the challenge is, each marketer needs to know what tasks need automation. Usually what is involved in the process are the data inputs and outputs.
This is the main reason why marketers want DMP. Daily data management is not a task that actually makes a profit or directly impacts the bottom-line of many businesses. The automation is supporting marketers with data storage, data processing, and transformation so that data becomes actionable.
Another reason to build your own “Private DMP” is the recent privacy protection act.
Sometimes “DMP” is referred to as a Data Management Platform for 3rd Party Cookie Tracking which integrates with DSP and/or SSP to manage audience segmentation and ads bidding.
Typically they are not your own data as you’re paying for the platform managed by the third party, so you don’t need to code anything by yourself.
However, since the recent perception for ads tracking cookies has changed, marketers now need to consider using their own data.
There are various kinds of marketing technology platforms in the market. Let’s review some typical data sets that marketers want to stitch together.
A common business question marketers would ask: How many customers have purchased from both online and offline stores?
If you are familiar working with spreadsheets, you may try to
To automate this, the marketer needs to (following the same example):
The efforts required to set up automation may feel intensive, but it is a really simple task if you have the technical resources and expertise in-house or with an agency like Principle.
Now you know why DMP is needed and the cost for building it.
But there’s a suitable approach for your organization depending on the size or purpose of your business.
Some marketers have skills to automate tasks above with Microsoft Excel or Google Sheets because VBA and Google Apps Script helps to do some complicated work.
These tools are really handy and cost-effective until you get a lot of customer data.
Microsoft Excel is the tool designed for everyone, meaning this is not for “big data” analytics. At some point, you will get really frustrated with the processing time of Excel as the size of data gets bigger and bigger.
Google Sheets is a handy tool as well but its limitation of the number of cells in a spreadsheet (5 million cells per spreadsheet) would be not enough to handle your data in the future.
Google Sheets Example:
You have a website traffic dataset that has 10 columns, and you get 1000 pageview records a day on average, it will consume 5 million cells roughly in 1.36 years
In conclusion, if you are running a really small business that handles small data sets less than above, this might be the best direction to go.
If you are going to aim a scalable business that creates millions of data, you will need to consider building an actual private DMP. However, a large dataset requires a lot of data definitions, which makes it more complex.
From that perspective, if you run an online business, using tools that have standardized definitions for typical data would be very helpful. And this is where Google Analytics comes in handy.
If you run an eCommerce business, Google Analytics has datasets for products and eCommerce with standardized definitions.
Working with analytics platforms like Google Analytics has the following capabilities which many marketers aren’t aware of. These could be beneficial for marketers to know when designing a private DMP.
When you consider using Google Analytics as a data source for your private DMP, you will be surprised by things that Google Analytics can do for you.
It is very important to know that these functionalities are completely free of charge until you get a huge amount of traffic.
If you want to upgrade your capabilities or keep using your Google Analytics data, you can choose to purchase Google Analytics 360. This is great because you can make your private DMP “really” scalable.
If you use Google Analytics as the source for your private and cost-effective DMP, Google BigQuery could be one of your future best options as the storage for the DMP.
When you choose to buy Google Analytics 360, you are going to use Google BigQuery as your private DMP because Google Analytics 360 can export raw data into BigQuery so you can integrate it with Search Ads 360 or Display & Video 360 data.
However, if you want to use BigQuery as the storage for your private DMP, requirements for using this would be higher than just to use Google Analytics.
SQL (data query language) is one of the must-have skills for using BigQuery. Otherwise, your data will just sit in BigQuery.
All you need to do now is to “Transform” these data, that are already “Extracted” and “Loaded” from Google Marketing Platform into storage like BigQuery, and make your marketing data actionable.
Here is an example deployment of a CDP platform where private DMP could be well applied. In this use case, we were able to achieve 3x lift in transactions for our client.
We were able to achieve this result by properly leveraging the data and providing a data output that is actionable. With that, Google Ads can optimize with true ROI data based on both Offline and Online customer behavior data.
With a private DMP and some pretty cool analytics usage, you can perform a multi-touch attribution analysis. Here are some examples of it.
Senior Data Engineer
Google Marketing Platform expert with experience working with enterprises deploying marketing analytics capabilities. Guy is focused on delivering marketing technology and supports companies drive their marketing execution through data.