What is a customer data platform? If you’re finding yourself asking this question you’re at the right place. With this platform, publishers can earn incredible insights into their ad management needs through the collection of current customer data. This has traditionally been obtained through third-party data collection methods, with a number of platforms and services available for publishers to choose from in order to fine-tune their targeting. But as technology advances, so do data collection methods. Unfortunately, this has led to a huge loss of security over the years, with some corporations like Facebook having to answer for their illegal collection of third-party data.
As the lines of third-party data collection become continuously blurred, there are rising concerns among publishers and consumers alike. Why and how is data being collected? How can publishers continue to collect data without compromising the security or safety of their users? These questions have driven advertisers across all industries to create better first-party data collection systems which offer transparency and personalization beyond what automated third-party data collection services can do. And that is what has driven us at OKO and Insticator to develop a unique supply-side platform that uses secure first-party data collection tools.
Below, we are going to talk about what exactly the customer data platform definition is, the benefits of a customer data platform, and how you might be able to utilize a customized data platform to securely and efficiently collect the data that matters most to the future of your website.
Customer Data Platform Definition and Uses
Also known as a CDP, the customer data platform definition is any kind of software built specifically for capturing, managing, organizing, and analyzing the customer data that comes from a publisher’s own first-party ads. Many dynamic CDPs take this a step further to process and track each piece of data, using it to predict trends and come up with forecasts that can help publishers make the right moves in the future.
Why Are Publishers Using CDPs?
There are many benefits of a customer data platform. As the value of first-party insights starts to grow, so does the demand for fully managed web monetization solutions. Using advanced software technology, data can be synced and processed faster than ever before. This brings companies much closer to understanding their ideal target audience, inspiring new types of content engagement to keep website impressions high.
Are Customer Data Platforms Secure?
By marrying many different types of data into the same overarching database, publishers can easily access a wealth of information that will help improve their audience targeting methods. One of the biggest differences between first and third-party data is the act of anonymity: third-party methods rely on collecting a user’s personal information and targeting ads to that specific person in the future, while first-party data collection services completely anonymize and automate the process of data collection so it cannot be traced back to any one user.
What Types of First-Party Data Do CDPs Collect?
The data collected through a CDP is then used to create a profile of the ideal target audience, which can give publishers and advertisers better ideas for ad placement, type, formatting, and space. There are typically four major “categories” of data that most CDPs look for and collect, including:
- Descriptive data includes information about the target audience’s career, lifestyle, hobbies, income type, home, interests, active subscription services, and more.
- Identity data collects very basic personal information such as location, name, demographic, personal and professional information, and public contact information.
- Qualitative data takes stock of consumer behaviors and shopper preferences, collecting information about why products were purchased or why certain products received bad ratings.
- Quantitative data, similarly to descriptive data, includes information about each customer’s online activity behaviors, such as how long a user remains on a page, what the individual level of engagement is, and whether there were any customer service interactions involved.
Using a centralized storage location for all of this data, CDPs make it easy for publishers across any niche to immediately access and analyze whatever kind of information they want. Since it’s all randomized and collected anonymously, it doesn’t come back to haunt the user either.
What are the Biggest Benefits of a Customer Data Platform?
When answering the question, “What is a customer data platform?”, you want to also know their benefits. But, there are too many to list them all. A few benefits of a customer data platform are: they’re automated, ever-evolving, and custom-made. When you start using an all-in-one solution provided by a Google Certified Publishing Partner with a focus on user privacy, you can expect to receive the following perks:
1. Better Data Management
Everyone views and analyzes data differently, so it’s a good idea to have a platform that is adaptable to many forms of management. A robust customer data platform will give you different organizational tools and resources to help you visualize the data that matters to you the most. You don’t need to be a computer scientist or a whiz behind the screen to figure it out, either; many CDPs are built around the already-existing knowledge and structures of the publisher.
2. Enriched Customer Experiences
While no user’s personal information is stored and shared in a way that can be connected back to them, the data collected by a CDP can ultimately be used to improve the website experience of all who traffic the site. By creating more personalized ad campaigns that center relevant engagement tactics, you can not only boost your revenue but your brand recognition as well. In fact, a study by Bain & Company showed that creating more individually-curated marketing campaigns can improve customer loyalty ratings by around 25%.
3. Improved Protections
At OKO, we take privacy and protection very seriously. As a GCPP, we are compliant with all GDPR laws and regulations that might prevent publishers from succeeding on their own due to data constraints. Customer data platforms are a new wave of highly secure data collection tools that protect not only your interactive ads and marketing strategies, but user information as well.
Find a Solution that Works for You
Refined first-party data is much more secure and manageable than its third-party counterparts. So, what is a customer data platform, and why is it important? Hopefully being able to adequately show that by investing in a customer data platform, you are allowing your brand to stand on its own with built-in securities to protect buyers and sellers alike. There are many benefits of a customer data platform and you deserve to have access to the major insights that will help you make more informed marketing decisions in the future. From full web management to collected data organization, OKO provides a wide range of publisher solutions to help out publishers looking to monetize their websites the right way.
Interested in learning more? Learn about how to access Google’s Ad Exchange and what’s the Best Google Certified Publishing Partner for you from our team of experts.