DMP adoption is higher than you think, and growing
A recent study commissioned by Oracle Marketing Cloud and conducted by ExchangeWire Research has revealed a plethora of interesting sound bites and statistics around the current DMP market. The report makes for interesting reading and is worth a look here but to make things easy, here’s an abridged version (with a little opinion thrown in).
Adoption higher than you may have thought, and growing still
According to the study, the adoption rate of the DMP is around half across the buy and sell-side, with 53 per cent for media-sellers, and 43% for media-buyers saying that they had implemented a DMP.
That figure is set to grow significantly given the huge growth in audience targeting, programmatic and the growing need to consolidate audience insights within fewer and fewer interfaces. In fact, 1 in 5 of those that had not yet implemented a DMP were seeking to do so within the next 6 months.
It’s an evolving market, and that will stretch DMP vendors
Although the vast majority of respondents said that their DMP had been operational for fewer than 12 months (59% of media sellers and 53% of media sellers), there was a significant minority that were moving into their second and third years with a DMP (41 per cent of media sellers and 48 per centof media buyers).
For DMP vendors, that means a marked diversification of the client base, with a requirement to support an increasingly advanced existing customer base with new products, engineering support and holistic integration, content personalisation and cross platform strategies, whilst also bedding in new clients which typically requires a greater focus on basic use cases, productisation and embedding an overarching data strategy.
Its all about control, efficiency and insights
Amongst the major use cases cited by both buy-side and sell-side was control over, and consolidation of, 1st party data. This is of course a natural fit to the main functionality of the DMP – a central data repository able to collect disparate 1st party data sets across an increasingly fragmented ecosystem, and to normalise and structure that data into actionable insights.
For media buyers, efficiency was also a major contributing factor, with 1 in 4 on the buy-side stating their primary reason for implementing the DMP as “Improving ROI of marketing and advertising activities”.
Across both the buy-side and sell-side, one of the largest contributing factors for DMP implementation is the capability to turn data into insights, to profile audiences and to generate a single customer view across an increasingly fragmented ecosystem.
Success rates are high, but there are challenges
For those that had implemented a DMP, 90% said they had achieved success with the DMP. However, the DMP implementation wasn’t without its challenges. Major challenges across the buy and sell side included; removing or replacing legacy technology, a lack of skills within the business, disparate data sets, silos across teams and company culture.
Let’s get proactive
Working predominantly on the strategy side of the business, and focusing on supporting our clients overarching data strategy and time to first value my main take-away from this report centres around the challenges and use cases, as those specific points relate to reducing friction for our clients and helping them to generate positive ROI as quickly as possible.
As a business and more generally as an increasingly influential player within the ad tech space more generally, we need to work hard to reduce challenges and barriers to entry to data management solutions for both the buy-side and sell-side, and make sure that our product roadmap is evolving to meet not only the core use cases of new adopters, but also the more sophisticated use cases of the maturing client base.
We need to be ready and able to evolve with our clients, this means proprietary technology built and controlled from within, and a flexible product roadmap which changes quickly according to market feedback and client requirement. It also means a greater emphasis on customer success, on one-to-one and one-to-many education processes and the training of our client’s teams.
About the Author
Miles Pritchard is the Director of Client Strategy, EMEA, at Lotame.