- Over two thirds (68%) of European brands, agencies and publishers now use a data management platform (DMP) and by 2018 this figure will reach 92%
- One quarter (24%) of DMP users report the highest level of satisfaction with the performance of their DMP with (23%) stating that it has ‘no limitations’
- Advanced DMP users predict continued development over the next few years
LONDON – Five years after Data Management Platforms (DMPs) arrived, they have become a digital marketing staple, with 92% of European media buyers and sellers set to have a DMP in place by 2018, according to a new study by ExchangeWire and Weborama.
Yet while the study found that many adopters were experiencing the benefits of DMPs – 76% of publishers and 75% of trading desks use DMPs to create new revenue streams from data – it also revealed a tendency to view the technology as a ‘plug and play’ service was preventing early users from realising its full potential.
More than one in four respondents said that disparate data sets (48%), siloed teams (46%), and a lack of skills in house (41%) were challenges to the implementation of their DMP – indicating that a high proportion of users do not have the right operational systems in place. It is likely that this is due to limited knowledge of how DMPs should be used – 45% of respondents admitted that a lack of knowledge is a barrier to adoption.
It is therefore no surprise that usage of DMPs has proved a learning curve for early adopters whose needs have grown more sophisticated over time. When reviewing their current installation, organisations that have been using a DMP for over two years present needs that are not only different to early adopters, but also more challenging for DMP providers.
Long-term users view DMPs as more than simply an activation tool and want to use it to facilitate better media buying and marketing engagement strategies. It is clear that with continued usage comes a deeper understanding that leads to greater benefits and a desire to push current boundaries.
UK respondents – who are most advanced in their DMP adoption – cite one of their biggest frustrations with DMPs as insufficient data insights, pointing towards customer intelligence as the next big challenge for DMP vendors. This may also explain why further integration with their existing technology stack is a priority for 21% of respondents overall.
Mathieu Roche, Global Business Development Director at Weborama said, “DMPs are not a one-size-fits-all type of solution and need to be chosen and implemented in a customised manner by each organisation. DMPs offer a way to break down the walled gardens imposed by some large online advertising platforms, and enhance data-driven efforts. Yet it is vital for brands, publishers and agencies to ensure they have the right knowledge, and systems, in place for their DMP to realise its full potential.”
Julian Brewer, head of TSB digital commerce, said: “We’ve used a DMP for a number of years and ‘learning through doing’ has certainly changed our view of how we use it and what we want and don’t want from a DMP platform. We’re currently exploring our requirements from a 2nd generation DMP and looking back at our initial demands… they are markedly different.”
But satisfaction amongst those who have unlocked the benefits of their DMP is high, almost 90% of respondents said they were either ‘very satisfied’ (24%) or ‘satisfied’ (65%) with their DMP. Over half (55%) say they have calculated positive ROI from their DMP, although three in 10 respondents (29%) admit it is too early to tell the ROI their DMP has delivered.
Rebecca Muir, head of research and analysis at ExchangeWire, said: ““The difficulties the study has highlighted in measuring ROI are a strong indication that many businesses have not fully integrated their DMP with overall business strategy. To effectively calculate the results of implementing a DMP, data-driven marketing activity must first be aligned to core business goals and the metrics that will be used to gauge performance should be clearly defined before campaigns begin.
“DMPs have the power to positively impact a variety of areas, from audience targeting and the efficiency of media buying to sales and customer retention, which means businesses need to establish the unique areas in which they expect their DMP to boost performance if they want an accurate view of the ROI it generates. DMPs are a long-term investment and to realise the benefits of centralised, efficient data management, performance measurement must be tied to long-term business plans.”
Now an integral element of the marketing mix, it will be essential for publishers, brands and agencies to develop their understanding of DMPs and how they should be used effectively to ensure they are prepared for an increasingly data-driven digital landscape.
To read the full report please visit https://www.exchangewire.com/weborama-report/
Methodology & sample
This report is based on a survey of 360 digital marketing professionals from around the world. Information about the survey was emailed to ExchangeWire’s subscriber base of digital technology and marketing professionals, and promoted online via the ExchangeWire website, Twitter, and LinkedIn, during March 2016. Weborama also distributed the survey to their clients and prospects around the world. Furthermore, ExchangeWire Research interviewed 8 senior marketing and technology professionals to get their unique insights and in-market perspectives on the findings.
Survey respondents were asked to report which region they work in and also to categorise the company they work for. Respondents were then grouped by region and organisation type.
Distribution of respondents by region and country:
*Northern Europe includes: UK, Netherlands, Germany, Denmark, Sweden, Belgium, Finland, Switzerland, Ireland, Austria
Southern Europe includes: Italy, Spain, Portugal
Distribution of respondents by business type
For more information, please contact:
Rebecca Muir, Head of Research and Analysis, ExchangeWire
About Weborama
Listed in Paris on Alternext (Alweb), operating in some thirty countries out of seven offices – Paris, Moscow, Miami, Amsterdam, Madrid, Milan, Lisbon – with a team of 220 employees, Weborama is a leading European data company, that supports global strategies of companies across every economic sector with the aim of placing data marketing at the epicenter of their activity.
Weborama operates across 2 complementary markets: data advertising and data strategy:
- Weborama is the European leader in data advertising and is now developing its activities in Latin America. The group supports advertisers and their media agencies in developing and implementing intelligent digital advertising campaigns with a view to optimizing targeting and ROI in a continuous and sustainable way. Weborama assists media publishers (TV, Radio, Print) in qualifying and developing their digital audiences, thus meeting advertiser demand and modernizing their own CRM to expand their audiences and revenue.
- Weborama, in partnership with companies committed to a global data strategy, such as AXA, La Redoute, Les Echos Group and La Poste Group. This market, in which Weborama is a pioneer, is currently taking off. Weborama helps companies manage their marketing globally through data. The challenges lie in the knowledge of client behavior and expectations, and more generally, with regard to market developments and competitive risks. Weborama’s approach favors the horizontal “decompartmentalization” of business operations and an open attitude towards new business. The data process continuously and sustainably increases a business’ customer knowledge and winning performances, and hence their value (data goodwill).
- Weborama’s value proposition is anchored by strong data resources and expertise (gained from 15 years of data science experience), a proprietary technology platform offering data management (Weborama Audience Manager), ad serving (Weborama Campaign Manager) and audience analytics (Weborama Audience Insights) capabilities, and an exclusive data set of 500 million qualified profiles (third party) active in 10 countries. Weborama had a consolidated turnover of 26.182€ in 2015, a 17% organic growth v. 2014.
About ExchangeWire Research
ExchangeWire tracks global data-driven and programmatic advertising, media buying trends, and then ad tech and mar tech sectors. Delving deep into the business of automated media trading and the technology that underpins it across multi-channels (online display, video, mobile and social), the site aims to keep readers up to data on all the latest news and developments.
ExchangeWire provides opinion and analysis on the following sector companies: specialist media buyers, ad traders, ad networks, media agencies, publishers, data exchanges, ad exchanges and specialist ad tech providers in the video, mobile and online display markets.
Reflecting the growing prominence of programmatic advertising, in 2014 ExchangeWire launched a new company division – ExchangeWire Research – to help marketers better understand how it fits into the wider marketing mix.
Conceived by Ciaran O’Kane, CEO of ExchangeWire and Rachel Smith, COO of ExchangeWire, ExchangeWire Research is headed up by online marketing and data expert Rebecca Muir. The unit uses its proprietary technology and unique industry data sets to offer global data and insight on the marketing technology, advertising technology and programmatic advertising sectors.
