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  4. > Data Management Platforms—Essential Tools for Digital Advertising

This Frost & Sullivan strategic insight presents an analysis of the US data management platform (DMP) market. It presents an overview of the current environment and of the new functions that DMPs will perform in future. It also discusses the market potential of DMPs in the United States and the business models of the providers. Throughout this insight, the terms “advertising” and “ads” are used interchangeably.

Data Management Platforms

The insights generated from consumers’ digital activities can help brands, marketers, and content publishers deliver targeted offers and custom content services. The wide range of activities performed by consumers in the brickandmortar retail environments form a source of data (about consumers) as well. The need to appropriately process these vast and complex data sets has led to the emergence of data management platforms (DMPs), which can ingest and normalize the data sets and develop actionable insights about consumer behavior. In the context of digital advertising, a DMP can be used by marketers and agencies (collectively referred to as “buy side”) and content publishers and app developers (collectively referred to as the “sell side”) to make audience data meaningful and actionable. Therefore, a DMP plays a central role in the advertising ecosystem, where their services (or capabilities) are used by both the buy and the sell sides to power digital marketing.

Table Of Contents

Data Management Platforms—Essential Tools for Digital Advertising
Introduction 3
Data Management Platforms 3
Data Ingestion, Normalization, and Optional Creation 3
Intelligence Sharing 4
DMP Engagement Models 4
Engagement Models for Publishers4
Engagement Models for Marketers 5
Engagement Models for Other Entities 5
Summarizing the DMP Engagement Models 6
Emerging Trends and DMP Roadmap6
Multichannel; Offline, Online, and Mobile Integration6
Marketing Clouds7
Smart Data and Eventsdriven Marketing 8
Audience Marketplace 8
How can DMPs Differentiate?8
Key Considerations for Selecting a DMP9
Basic Capabilities 9
Other Essential Capabilities 9
DMP Market Size 10
Types of Customers 10
DMP Market Potential11
Conclusion and the Final Word13
Legal Disclaimer14
The Frost and Sullivan Story 15

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