Are you keeping up with the rapid evolution of data?
What is the latest digital marketing jargon in your mind now? Is it ADX? DMP? DSP? RTB? Or CDP?
You might wonder why does the digital industry uses so many terms? what is the difference between them? Or more specifically, what do I need? What benefits can they bring to my business? Is the original CRM not good enough? Then why we need DMP, CDP now? What exactly is CDP? Those question marks keep popping up in your heart!
#CDP
Now, the most popular jargon has moved from DMP to CDP
What is CDP? CDP is the Customer Data Platform.
The concept of CDP has existed for a long time, but in the past few years, only large international companies may have been interested in CDP. However, due to the public's awareness of personal privacy raise recently, the platform's policies of user data protection have become stricter. Under the requirements of digital media self-regulation management, so-called third-party cookies will soon be unavailable. Therefore, the major advertisers are paying more attention to CDP.
What is the result of banning third-party cookies? That is, when third-party cookies can no longer be used, all consumer ID information identified through third-party cookies, including crowd data strategies, crowd-targeted comparisons, etc., will no longer be used. This also means that the marketing strategy that marketers have long relied on to improve advertising effectiveness will not work anymore, the advertising efficiency pressure faced by marketers will come oncoming.
Although marketers can’t get customers' off-site data, at least they can collect all first-party data on the site and find opportunities to interact and communicate with precise consumers.
#Business intelligence within the enterprise
Why not CRM? Simply put, CRM is a part of CDP. In my perspective, CDP is not only to connect all the internal data in the enterprise but establish the connection with external databases. Not only need to know what products a member has bought, all identifiable information includes the member’s gender, personal information, email, phone number, location, income difference, and even what content has been viewed, comprehensive website viewing journey of each user, etc. All kinds of data should be linked together. After being integrated, analyzed properly, those data could become an applicable resource for marketers.
In the past, we often said that business intelligence within an enterprise is the data secrets that are scattered and hidden in various databases within the enterprise. Only by digging them out first, through integration, assignment, connection, analysis, learning, and application. So that we can transform these data of the enterprise into business intelligence, it can create higher benefits for the enterprise.
#If I already have CDP, do I also need DMP?
The correct statement is that DMP can enrich the integrity of CDP data and play an absolute bonus.
CDP is based on recognizable first-party data, while DMP is to collect unrecognizable user behavior images. For website owners, collecting first-party member information may be simple. But the difficulty is to know more about your member' behavior outside, including their interests and preferences and even the behavior trends on the Internet. The data on the site allows us to fully understand the characteristics and preferences of members, combined with the data of DMP, can make all the data more complete and richer, and can further understand the off-site data analysis of on-site users.
Do you remember that when we talked about big data, we said that big data must be large in quantity, it must be analyzed, predicted, applied, and neither can be absent, otherwise, it can only be statistical data. This logic must also exist in the CDP vs. DMP application.
#Find more ways to use data
The purpose of data collection is to be able to apply and make it optimize marketing efficiency. CDP materials belong to the business owner (website owner). In addition to improving the publicity efficiency of their own media, understanding consumer behavior and purchasing preferences, it is possible to think about how to use the data to maximize the benefit of the business. Under the authorization of the owner of the first party, handed over to a third party after the de-identification process to use the data accurately find the target consumer corresponding to the marketing strategy goal. It is a win-win situation now between protecting consumers’ privacy and reaching the company's marketing goal.
The world of data marketing is changing rapidly, and technology is constantly being introduced and new. But the basic concept has never changed. The cognition and application of data remain unchanged because using data is nothing more than improving marketing efficiency to achieve marketing tasks.
Starting from the needs, mastering consumer information can you know yourself and the enemy.
As for how to choose and use digital marketing tools properly? My suggestion is to first perform an internal Digi-check in the company to determine the level and goals of the company's digitization, step by step, trust in professionalism, and be patient to make changes to achieve the goal step by step.