DMP vs CDP

Posted by ujwal on July 17th, 2019

To analyze and make sense of the data, financial services marketers are turning towards digital technologies such as data management platforms and customer data platforms. Integrating these technologies with business objectives help in minimizing costs and improving customer experience.

DMPs primarily use third-party data from various data sources. For advertising, they target anonymous cookies. A CDP uses a company’s customer data or first-party data and it consists of both anonymous and existing users’ personally identifiable information (PII). The user information includes details such as the users’ online and offline activity, their transactional data, behavioral data, etc.

 DMPs can store user data up to 90 days after which it’s replaced with new data. They also don’t have the capability to create targeted ad campaigns for select audiences. They can only do it for an anonymous audience. CDPs store historical user data for long periods of time which makes them capable of capturing product or service transactions, customer communication and behavior. They can integrate both online and offline data and create a single user view for each customer. Targeted marketing campaigns can be easily served to select audiences.

 When it comes to data capture, DMPs are good at keeping track of a user’s activity. CDPs can augment and enhance this feature by analyzing the user’s buying propensity and the affinity to certain marketing channels.

DMPs are good for all digital channels where quick marketing decisions can be made to reach an audience. As CDPs are tagged with a unique customer identifier, they can allow access to offline transactional data, social media channels, and associate sentiments with customer behavior using intelligent algorithms.

Here are some of the major differences between CDP and DMP