Asked to list the hottest categories in martech, you might mention customer data platforms (CDPs), identity resolutions platforms and data clean rooms. But have data management platforms (DMPs) been around so long we just take them for granted? Will an increasing reliance on first-party data managed through CDPs, plus all the privacy issues surrounding third-party data, conspire to make DMPs extinct?
Data management solutions vendor Lotame is betting against that. But it’s also going out of its way to position itself as a partner for CDPs. Alex Theriault, general manager of Lotame’s latest solution suite Spherical, explains that Lotame has worn a few different hats over the years, from an ad network selling data and audiences in 2008, to one of the first DMPs coming to market in 2011. Through an aquisition, they expanded into the cross-device and full identity resolution space, and they also offer one of the largest global data marketplaces, the Lotame Data Exchange.
The research focused on the evolving CDP space and the use cases CDPs are best-suited to serve. It was found that the demand for the kind of functionality that has historically lived within a DMP would persist, such as access to third-party data, built-in analytics, modeling capabilities, and pipes into the adtech ecosystem.
The role of CDPs is critical when it comes to managing and activating data volunteered by known customers or known site users. That leaves a gap when it comes to targeting people who make it to the site, perhaps put something in their cart, but never execute a one-time buy or sign up for a subscription. Lotame suggests that tracking third-party data using their Panorama ID can be more effective than relying on third-party cookies. They have run case studies in environments like Safari where improved results were seen compared to those running campaigns on third-party cookies.
The workflow between Spherical and partner CDPs is bi-directional. CDPs collect first-party data across channels, from offline, email and mobile, to web visits and CTV. It is then cleansed, segmented and sanitised within the CDP, and pushed to Spherical for analysis, enrichment and modelling based on Lotame’s DMP resources. Spherical can push the result audiences to adtech solutions or to social media pipes, as well as send campaign data like clicks and impressions to the CDP.
One might expect to see pushback against this proffer from customers that have invested time and money in a CDP and perhaps also use a DMP. Lotame has introduced a variable model that supports things like seasonality, and the ability to test and learn and iterate with different brands without being locked into minimum monthly fees. The benefits of all this connectivity lies in bringing data on known and unknown customers, deterministic and probabilistic data, together.
Originally reported by Martech: https://martech.org/the-future-of-data-management-platforms-in-the-era-of-cdps/
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