In order for Ad Exchanges, DSPs, and SSPs to connect the right buyers with the right sellers, this is where the DMP comes in.
A DMP is a Data Management Platform that manages non-identifiable user data from both first- and third-party sources.
Advertisers collect first-party data about their customers. Publishers collect first-party data about their website visitors and app users. Data companies collect third-party data on behalf of their clients (both advertisers and publishers can be clients of data companies). All this data can be uploaded and managed in a single DMP.
Programmatic technology connects to a DMP and uses the data in real-time to match users with the right brand message. For example, an SSP connects to a DMP to help publishers group their users into audience segments. Audience segments are data that buyers are looking for, for example “families interested in booking hotels.”
A DSP connects to a DMP so that buyers can manage their data, as well as buy additional data to find the right audience. The DMP is able to sync advertiser’s first-party data to data from publisher side.
1. DMP is the data component of programmatic.
2. Advertisers and publishers collect first-party data about their users. Data companies collect third-party data on behalf of clients. Both first- and third-party data is uploaded to and managed in a single DMP.
3. In programmatic advertising, users are matched to the right brand message using first- and third-party data from a DMP.