[SIMON] This question crops up in almost every meeting we have with our clients. As the CDP gains more popularity among industry peers, its unique benefits seem to be overshadowing those held by the DMP – therefore ‘killing’ it in the process. Yet, this simply isn’t the case.
If we had to boil it down to the most macro-level use cases for the technologies – the core difference is that CDPs ingest PII data and DMPs don’t. Therefore:
The DMP is traditionally used to acquire new customers, utilising the power of data aggregation and modelling to reach more scale through smarter targeting strategies.
The CDP is traditionally used to engage with existing customers with highly targeted messages, utilising the power of data insights to speak to an individual consumer.
Of course there’s much more beneath the surface of the each platform which are explained in our latest DataTech report. But, essentially, one provides tools which are more geared towards acquisition, and the other for individual customer insight and engagement.
[UMBERTO] Adding to Simon’s point, the DMP is designed to serve one core function for marketers and publishers; it manages the collation of data from different sources to categorise and classify that data. It then segments that data so that businesses can effectively target customers at scale.
On the other hand, the CDP has a system of records to manage identified customers, by gathering data from a company’s database, CRM, websites, apps, or transactional systems. This is then used to communicate to the consumer through personalised offers, promotions and customise emails.
Two different use cases. But, both equally important.