Ad targeting, improving return on investment and centralizing data remain the top three reasons marketers use a data management platform (DMP), according to a study by Radar Research commissioned by BlueKai. The survey shows how quickly marketers and brands continue to adopt DMPs to better understand their audiences, drive detailed analytics and break down silos across media channels.
Not surprisingly, marketers want a data-driven view into search, social, analytics and mobile to better find, target and retain customers. Some 64% of marketers surveyed view DMPs as a way to drive higher ROI, followed by 60% who see it as a way to leverage and collect first-party data and optimize media campaigns. Among first-party data assets, email, media campaign and Web site data are the most highly valued.
Some 55% of marketers said they use a DMP to create a targeting profile of their audience; 46%, to drive audience analytics; 28%, to house audience data in a central location where multiple partners can log in; 25%, to automate more of the ad planning and buying process; and 24% to extend their audience. Marketers also found value in increasing scampaign scale, optimizing ad creative materials, controling advertising costs, ensuring compliance with data collections, and keeping up with competitors.
Even with all the challenges, one-third of respondents who don’t use a DMP said they plan to in the next 12 months. Cost is a major inhibitor when it comes to adopting DMP technology, with 53% reporting they don't have the budget. Some 38% said they don't have the in-house resources to manage a DMP; 24%, said digital marketing efforts are still too immature; 20% have built their own data warehouse; 19%, say it's not cost-effective; 9% are unable to sell the idea internally; and 2% don't believe a DMP can increase marketing efficiencies.