Top 3 growth drivers in the market for DMPs – Private Data Marketplaces and Data Co-ops
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 third part of a series of 3 blogs – Private Data Marketplaces and Data Co-ops.
Driver #3: Private Data Marketplaces and Data Co-ops
The shift from segment level 3rd party data reliance to mastering one’s own 1:1 user level 1st party data continues relentlessly, as marketers seek to unify their data silos. This trend is further strengthened by the DMP powered quest for SCV, and the tightening EU data regulation (GDPR) in 2018.
There is however a very real limit to how far most marketers alone can get relying only on their own 1st party accessible data assets. Quality alone does not fully compensate for reach. Complementing 1st party data with readily available 3rd party segment level data does not offer much solace either, as opacity continues to plague the 3rd party data markets, and as segment membership level information falls short of most needs beyond simple campaign targeting.
Instead, marketers are pouring in over 2nd party data partnership opportunities; both to access qualified, transparent, and trusted peer segments, as well as to access each others’ 1:1 level audience data alike. Whilst the former is already materializing in robust growth for Private Data Marketplaces, also called 2nd Party Data Marketplaces or Peer Data Marketplaces, the rise of mutual AI ambitions is driving another class of privileged and private data sharing: data co-ops for 1:1 level user data. Here, we see a plethora of activity and excitement with DMP customers eager to open up their 1st party data (using the term broadly here, not restricting its meaning to on-boarded offline data) for peers, in exchange for mutual benefit — often in the form of improved algorithmic audiences or cross-device graphs.
Read other texts of growth drivers in the market for DMPs:
Driver#1 – Single Customer View
Driver#2 – AI (Artificial Intelligence)