The radical reduction in the availability of third-party data means fewer possibilities for behavioral targeting and a drop in advertising revenues for many media owners. To offset the losses, publishers need to think of new ways to approach user data. Hiring the data management platform can be a way out.
Within the next two years, the advertising market will phase out third-party cookies, which will alter the traditional model of targeting users, managing ad spaces, and tracking campaigns.
On the web, the share of users identified through third-party cookies will trend toward zero. The traditional model of cross-site browser tracking by third-party data providers and resellers will soon be obsolete. Thus, the importance of first-party data will rise. Publishers without their own data collection capabilities will experience major setbacks, while businesses that collect their user segments are in a unique position to reap the rewards of this new advertising landscape.
Collecting and managing first-party data creates unique opportunities for publishers in boosting their income, improving content experience, engagement, and building a loyal following. Leveraging first-party data can be used for content personalization and tailoring advertising messages for the cross-promotion of websites.
Business Insider utilizes behavioral data to develop profiles of its readers and then uses that information to personalize email newsletters and onsite content recommendations to better engage readers. These efforts increased their ad click-through rates by 60% and boosted click rates in their email newsletters by 150%.
Why Publishers Need DMP
According to Admixer internal statistics, on average, 12% of advertising budgets are spent on the acquisition of first-party data for audience targeting. With the elimination of third-party cookies, the demand for data will exponentially increase, and publishers who collect first-party data are in an ideal position to benefit.
Yet, they will need a reliable data management platform (DMP) to implement a data-driven business model. DMP will allow them to effectively import, export, analyze, and, finally, monetize the data. First-party data can reinforce the ad inventory and provide an additional source of income.
DMP Use Case: Simpals
Simpals is the largest online media house in Moldova. In the search for new reliable revenue streams, they partnered with DMP to set up first-party data collection and user analytics for 999.md, the Moldavian e-commerce platform. As a result, they defined 500 audience segments and now sell them programmatically to advertisers through DMP.
Using DMP provides additional data layers for advertisers, while boosting the quality and CPM of the provided impressions. Data is the new gold. Let's consider the main aspect of organizing publishers' data and choosing a tech provider that can fit the business needs of different types of publishers.
How to Prepare for DMP Integration?
- Data collection – First and foremost, publishers need to systematically examine all the data collection on their platforms. This includes registration on websites and in mobile applications, sign-ins in the Wi-Fi networks, and any other instances where users are encouraged to leave the personal data. Regardless of where the data comes from, its collection and storage has to comply with the existing legal frameworks of GDPR and CCPA. Every time publishers gather personal information, they need to get the users' consent, and leave them with a possibility to opt out.
- Data processing – Prior to onboarding a DMP, you need to process all your data, reconcile it into a single format, and remove duplicates. In order to set a uniform format for data, it is crucial to choose a single unique identifier, based on which you will structure your database. Choose the one that can easily identify the user, like a phone number or email. It will also ease the integration if you divide your data into segments according to the best-performing audiences.
How to Integrate DMP?
One of the most efficient ways of connecting DMP is to integrate it with CRM through API, synchronizing UniqueIDs. If your CRM is integrated with all of your digital assets, it can automatically pass data to DMP, which can enrich and enhance it.
DMP does not keep the users’ personally identifiable information. When DMP is integrated through an API or file import, it receives a bundle of data that connects the publisher ID with the unique user identifier you defined in the previous step.
As for integration through CRM, you can transfer data in the hashed format. DMP cannot decode this data, and will manage it in this encrypted format. DMP ensures the privacy and security of the user data, as long as you have implemented sufficient anonymization and encryption.
What functionality should DMP have?
To select the best DMP for your business, you need to define your requirements for the tech provider. Most importantly, you need to list all the necessary technical integrations.
DMP shouldn't disrupt your processes and needs to work around the existing technical infrastructure. For instance, if you already have a CRM platform, CMS, and integrations with demand partners, the chosen DMP has to be compatible with all of them.
While choosing a DMP, take into account all of its existing technical capabilities, so that integration wouldn't be a burden for your technical team. You need a platform that would effectively deliver the key functionality: collection, segmentation, analysis, and monetization of data.
- Tag Manager – After you integrate your existing data into your DMP, you’ll need to collect further data points. To do that, you need to set tags or pixels on your websites. These are the strings of code that collect data about user behavior on your platforms and then record them in the DMP. If the latter has a tag manager, it will be able to handle tags on your platforms centrally. Though optional, it will save your tech team a lot of time and effort.
- Segmentation and Taxonomy – Your DMP should have diverse features for data segmentation and analysis. It has to be able to establish taxonomy, a tree-like data structure that describes the interrelation between your data segments. It would allow DMP to define even narrower segments of the data, analyze them deeper, and appraise them higher.
- CMS integration – A more high-level feature of DMP is the ability to integrate it with your website CMS. It will allow you to dynamically optimize content on your website and meet the needs of your users.
- Monetization – After you’ve integrated DMP, you’ll need to learn how to activate the data for the further monetization in the demand side platforms (DSP). It is important to choose a DMP that could be easily integrated with your demand partners.
Some DSPs offer native DMP, tightly integrated into their ecosystem. It is important to note that a DMP integrated into a single DSP can be an effective solution, depending on the situation in your market and competitive landscape.
If you operate in a small market, where a particular DSP is a dominant player, using their native DMP might be a smart move. If you work in a big market, you need to pay attention to how easily the DMP can integrate with major demand platforms.
- Ad server integration – Another important feature is the ability to use your own data. Most publishers utilize an ad server to work directly with agencies and advertisers, launch their ad campaigns, cross-promote, or sell leftover traffic. Thus, your DMP needs to easily integrate with your ad server.
Ideally, your ad server should manage ad assets on all of your platforms (website, mobile app, etc.) and exchange the data with your CRM, which will, in turn, communicate it with the DMP. Such a model can significantly simplify all of your ad integrations, and let you clearly track monetization. However, this is not always the case, and you need to ensure that DMP works smoothly with your ad server.
It is critical that the technology provider you choose complies with global privacy and data security regulations. Even if you focus exclusively on data from the local market, you can still get users from any part of the world.
Another important factor to consider is the relationships of the DMP provider with the local advertisers and partners. Joining the unified infrastructure with established partnerships can ease the integration of your platforms and streamline the monetization of your digital assets.
It is also vital to choose a technology partner that not only provides you with a fully self-service interface but also supplies you with practical guidance, feedback, and consultation. Top-notch customer care is a must to troubleshoot any issues and tailor your data management strategies.