Top 3 growth drivers in the market for DMPs – Artificial Intelligence
We asked Petteri Vainikka, VP of Product Management at Cxense to list what top 3 drivers will catalyze growth in the market for DMP’s (Data Management Platform). DMP enables digital businesses to aggregate, segment and action user data to drive higher user engagement and revenue. With insight, Cxense create memorable, relevant, and engaging experiences.
Here we go with the second part of a series of 3 blogs – (AI) Artificial Intelligence.
Driver #2: AI
With 2018 set to become The Year of AI, it is only natural that this also will be viewed in the context of DMP evolution — and there is certainly plenty of good reason to be bullish on the prospects of applying machine learning and deep learning onto DMP data sets, in particular when equating DMP 1:1 user profiles with marketer SCV profiles.
Concretely, we see AI as playing a transformative role across both how audiences are created and managed in DMPs, as well as how marketers will co-ordinate their marketing activities across channels; always seeking to hit that optimally personalized next best action scenario driving conversions and CLV (Customer Lifetime Vehicles). For the former, we see a shift from Boolean rules based audience definition (discreet inclusion/exclusion) to machine predicted audience definition (probabilistic), wherein there are several tiers of AI application from simplistic Lookalike modeling to fusing entire data sets to fully automated audience discovery using deep learning algorithms. The foremost benefit of all three AI tiers of audience discovery for marketers, is that they all reduce the need for marketers themselves to manually define which signals matter most for which activity, amidst an influx of high velocity and high variance data.
The second realm of AI infusion happening in the DMP will transform how next best action scenarios are defined across marketing automation, as well which consumer engagement channels these personalized actions can be delivered in. First, we see the manually defined customer journey paths being gradually replaced by AI’s probabilistic decisioning. This is catalyzed by the inclusion of a rich new set of real-time customer engagement data harnessed by the DMP across programmatic advertising, social, paid search, and onsite personalization engagement, and fused with more stable and persistent data from marketing systems of record (yet also far less abundant and diverse). Equally, the DMP will enable automated triggering of more customer engagement channels, most notably paid search, social, and programmatic — all across devices and with frequency controls.
The next growth driver in the market for DMPs – Private Data Marketplaces and Data Co-ops will be published next week, read the first part Single Customer View here.