What are the differences between a DMP vs CMP, but more importantly the advantages found in both? In today’s world of advertising, correctly managing – and leveraging – consumer data is vital to the success of any marketing campaign. It is imperative that publishers are reaching the right audiences across our vast internet by knowing exactly who to target. Through the use of different platforms; data management platforms or consent management platforms, it is much easier to identify and engage with the consumers who matter to the elevation of a brand the most.
But here is where many publishers and digital marketers reach a fork in the road: with different types of demand-side platforms (DSPs) available, how is it possible to figure out which type will work best for a particular brand without sinking hours into expensive testing? Since consent management platforms and data management platforms are both highly recommended, publishers want to know the major differences between them before deciding which one to invest in.
Today, your OKO ad management experts will explain some of the biggest differences between data management platform advertising (DMPs) and consent management platforms (CMPs), in addition to explaining in depth their pros and cons so you can figure out what publisher solution will work best for you.
DMP Vs. CMP: Major Differences
When it comes to deciding between a DMP vs CMP, there are some major differences to consider. With a surge of easier access to consumer data comes an ethical responsibility to make sure it’s managed in a way that doesn’t breach personal privacy. There are a number of secure tools that have been developed to process, analyze, and utilize this data in a proper way, with no risk at all to the consumer. Two of those tools are DMPs and CMPs which stand as a fundamental part of any advertising strategy.
Data management platforms (DMPs) are customized platforms that support marketers with their creation of targeted campaigns. They have the capacity to utilize first, second, and third-party data collected from consumers in various ways, including online and mobile advertising. Using this collected data, the DMP will generate the ideal customer profile and guide concise future ad targeting. These profiles are then sent to different platforms with tools to help publishers along the advertising process. For example, DMPs might send consumer profile information to an ad exchange, a demand-side platform, or a supply-side platform (SSP).
Advantages of Data Management Platform Advertising
With DMPs being as versatile as they are, publishers can achieve a variety of goals, making this an optimal platform choice for publishers of all sizes. There are many reasons why a DMP might be the direction taken for publishers looking to fine-tune their ad targeting. Check out the following advantages of data management platform advertising:
- Extensive Customer Reach: DMPs collect and manage data that provide publishers with the reach and engagement required to touch new audiences based on the similarities within that data. The collection and organization of this data can be managed in a number of ways to detect patterns and trends among consumers.
- Better Audience Insights: Data management and audience reach go hand in hand with any comprehensive data management platform. The advanced components of a DMP can detect and predict changes in consumer trends, guiding your strategy to be a step or two ahead of the curve and allowing you time to shift ads accordingly.
- Anonymized Data Storage: While a data management platform can collect all types of data, it does not store PII or first-party data anywhere in its system. Instead, it anonymizes any kind of data that is kept for short periods to create trends and recommendations.
Some publishers and advertisers worry about what will become of DMPs, which are typically heavily reliant on third-party cookies as much as first-party data, once third-party cookies disappear entirely later this year. However, plans to change data sources, building new pipelines, and a walled garden approach are all topics of discussion to maintain this tool as one of the most powerful in the marketing stack.
A response to the building fear of data loss and privacy breaches, consent management platforms provide an opportunity to move away from reliance on Big Data. CMPs offer more transparency in a market that is starting to center the customer a lot more than it used to. Publishers interested in curating a meaningful customer experience through advertising might be interested in utilizing data collection methods that are to the customers’ benefit, rather than to their disservice.
Advantages of Consent Management Platforms
With the rise of many legislations such as GDPR in the EU, the CCPA in the U.S., and LGPD in Brazil, companies are cracking down on data collection platforms to make upfront consumer consent a bigger priority and requirement across the board. By complying with these data privacy laws, customers can go further without feeling so limited. Some of the most beneficial advantages of CMPs include:
- Immediate Law Compliance: CMPs are designed to comply with any and all data privacy laws that may exist in your area, as well as internationally. What’s more, they collect and store consent information for further records.
- Marketable Privacy: CMPs are known for protecting customer data which publishers use to design new experiences and engaging ad products around that very idea – privacy and protection. Centering consumer consent is a great way to boost both business opportunities and additional consent for data sharing in the future.
- Automated Rights Access: Through a consent management platform, advertisers can automate the process of checking whether or not all data subjects are meeting the mandated requirements for consent, and ensure that process is dealt with in a timely manner; using no code, it is possible to keep an ad campaign fully compliant.
Data-driven platforms facilitate advertising success by refining the information given to them by consumers, with their permission. CMPs follow data compliance laws while making it effortless for publishers to monetize their apps and websites with custom ad campaigns.
Find the Best Data-Driven Platform with OKO
Now knowing the differences between a DMP vs CMP and their advantages, you can identify key goals essential within your monetization efforts. You can select a platform that works best for you. If consumers are looking for a more personalized experience, a data management platform might offer the broadest range of tools and solutions to help publishers reach those customization goals.
On the other side of the fence, advertisers who want to push transparency and compliance with data consent laws will feel more secure with a consent management platform. Learn more about the difference between these two effective data systems and partner with a monetization expert when you contact OKO online today.