CDP vs DMP – What’s the Difference?
DMP – data management platform – technology platform used for collecting and managing data, mainly for digital marketing purposes. It allows to generate audience segments, which are used to target specific users in online advertising campaigns
CDP – customer data platform – software which creates a persistent, unified customer database that is accessible to other systems. Data is pulled from multiple sources, cleaned and combined to create a single customer profile.
And yet, it is still important to make that distinction.
How are they similar?
- Both platforms gather and manage data or big data, in most cases.
- The platforms are used to create quality segments and profiles for future use by in marketing activities between the brand and the customer.
- Most of the data handled by both platforms is digital data.
|Type of Data||Mainly used for 3rd party data, purchases and sales||Mainly used for 1st party data|
|Segmentation||Manages data on a segment level||Manages data on an individual user level|
|Use||Focuses on paid promotion||Focuses on personalization and multichannel processes|
|Customers||Suitable for large companies or organizations that spend a lot on media buying||Suitable for medium to large organizations|
DMP – Companies looking to sell/buy data from external (3rd party) websites and use it for large-scale online marketing purposes and launch activities at once, or shortly thereafter.
CDP – Companies that want to use their data (from all sources) to create a personalized customer experience and complex media processes, in moderate to lengthy timelines. CDP technology is newer and remains in its infancy with respect to B2B companies.
In light of licensing costs and the (low) media usage of most Israeli companies, CDP technology is much more relevant than DMP technology for most brands. As such, we expect to see significant CDP penetration in the coming years.
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