What is the major difference between DMP and CDP

Posted by ujwal on July 23rd, 2019

What is a DMP?

Data Management Platform or DMP is one of the oldest digital technologies that forayed into existence a decade ago. It’s a centralized platform that helps in creating a segmented target audience with the help of customer data. 

What is a CDP?

Customer Data Platform or CDP is a new digital platform that’s generating a lot of buzz in the adtech and martech worlds. According to CDP Institute, CDP is described as “A Customer Data Platform is packaged software that creates a persistent, unified customer database that is accessible to other systems”. 

Before getting to the differences between a CDP and DMP, let’s take a look at some of their similar features: 

Data Types:

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). 

Data Storage and Integration:

DMPs can store user data up to 90 days after which it’s replaced with new data.

CDPs store historical user data for long periods of time which makes them capable of capturing product or service transactions, customer communication and behavior.

Data Capture

DMPs are good at keeping track of a user’s activity.

A CDP enhances this feature by analyzing the user’s buying propensity and the affinity across all marketing channels.

• Leveraging existing customer data.

• Creating a single view of the customer

• Reporting, analysis, and optimization

  Both CDPs and DMPs have an interdependent relationship.

  DMP vs CDP plays a vital role in financial services market.