Improved ROI, Marketing Efficiency Top Reasons Marketers Use DMPs - eMarketer

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Improved ROI, Marketing Efficiency Top Reasons Marketers Use DMPs

Two in five marketers worldwide using a DMP

December 24, 2012

Today’s marketers aren’t just keeping up with the latest platforms and tactics, they must also manage a seemingly exponential amount of advertising- and customer-related data.

Consulting firm Radar Research, commissioned by data management platform (DMP) provider BlueKai, found in November that 40% of marketers worldwide were turning to DMPs to help them harness the vast amounts of marketing data.

DMPs are digital repositories that marketers, media buyers and publishers use to house and organize a variety of data assets, both first- and third-party, traditional and digital. DMPs also offer the ability to quickly organize and analyze the data for campaign reporting and optimization.

Improved return on investment and data targeting were the most common reasons marketers said they used a DMP. Efficiency also played a role in DMP usage: 46% utilized DMPs for greater audience analytics, 28% for multi-person usage and reporting, and 25% to automate the planning and buying process.

Reasons for Using a Data Management Platform (DMP) According to Marketers Worldwide, Nov 2012 (% of respondents)

These findings were also echoed in September data from consulting firm Winterberry Group and the Interactive Advertising Bureau (IAB) that showed ad targeting and automation as top benefits of DMPs. In addition, 83% of respondents said the move toward more audience-based buying—something DMPs can help to facilitate from an audience identification and targeting standpoint—was also a significant factor contributing to US marketers’ interest in DMPs.

Factors US Marketing Professionals See as Major Contributors to Interest in Data Management Platform (DMP) Solutions, Sep 2012 (% of respondents)

As consumer’s media usage continues to diversify and new and emerging marketing and advertising platforms seemingly pop up daily, DMPs and other “Big Data” tools and technologies are gaining importance within the marketing community. A good portion of respondents were spending more than 5% of their total marketing budget on such tools and initiatives; 36% spent 5% or less.

Percent of Marketing Budget Spent on Data-Driven Initiatives According to Marketers Worldwide, Nov 2012 (% of respondents)

The study suggested that among those not devoting significant resources to these efforts, limited investment on data-driven initiatives had little to do with lack of interest in DMPs and other data management tools. Limited budget and manpower kept most marketers from using a DMP. In addition, about a quarter (24%) of respondents abstained from DMP usage given the perceived immaturity of the digital marketing space. Twenty percent already had their own data management infrastructure.

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Check out today’s other articles, “Samsung Supplants Nokia as World's Mobile Winner ” and “Privacy Concerns Emerge for Social Media Users in India.”

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