CDP vs DMP
According to CDP Institute :
“A Customer Data Platform is packaged software that creates a persistent, unified customer database that is accessible to other systems”.
This definition has three critical elements:
“packaged software”: the CDP is a prebuilt system that is configured to meet the needs of each client. Some technical resources will be required to set up and maintain the CDP, but it does not require the level of technical skill of a typical data warehouse project. This reduces the time, cost, and risk and gives business users more control over the system, even though they may still need some technical assistance.
“creates a persistent, unified customer database”: the CDP creates a comprehensive view of each customer by capturing data from multiple systems, linking information related to the same customer, and storing the information to track behavior over time. The CDP contains personal identifiers used to target marketing messages and track individual-level marketing results.
“accessible to other systems”: data stored in the CDP can be used by other systems for analysis and to manage customer interactions.
Whereas, according to Wikipedia
A data management platform (DMP) is a software platform used for collecting and managing data. They allow businesses to identify audience segments, which can be used to target specific users and contexts in online advertising campaigns. Some advantages of using DMPs include data organization, increased insight on audiences and markets, and effective advertisement budgeting.
Difference between CDP and DMP
· CDP captures and manages the data about a customer — CRM data, interaction data, navigation, and behavior data
· A DMP typically ‘gathers’ masses of data on a user in the background as a result of their online actions — pages they browse, products they buy, buttons they click — all sorts of behavior. The data will be tied to an identifier, (historically a cookie, now moving into device ID for the better DMPs) and this data is then used to either target again the user or customer, or sell this to another publisher to do the same.
· As mentioned above, CDPs were built primarily to have customer 360 available from CRMs to other enterprise-level actions. On the other hand, DMPs were designed with marketing-related cookie data across broad digital advertising ecosystems as its foundation. While DMP data is a list of attributes, CDPs store extremely detailed information, including purchase transactions and details of web behavior
· CDP’s allow control over various selections like campaign design, ranking functions, eligibility rules, simulation, testing, and optimization. DMP’s lack of this ability.
· Insights from CDPs can be used for both offline and online activation. DMP’s can only be utilized for digital channels. DMP is primarily for acquisition marketing (ads)
· DMP’s cookies are usually unidentified, whereas cookies of CDP records are related to the known customers
· DMPs were built before Google/Facebook opened their custom audience APIs giving access to merging 1st party data with additional ad-network provided targeting criteria.
· DMP does not build a persistent user profile or resolve from an anonymous user to a known identity. CDP builds a profile across many different identifiers, both anonymous and known (cookies, email address, social login, etc.).
Summing Up
CDPs’ focus is mainly Marketing — personalization, Marketing automation, Campaign, etc. whereas DMPs’ focus is primarily advertising.
