What types of data can I manage with a DMP?
You’re able to collect and analyze three different types of data with a DMP:
Your first-party data includes any information that you have collected through a direct relationship with a customer. This data includes things like email addresses, behaviors, demographics, and purchase histories. First-party data can be collected directly from customers via forms, sign-ups, and direct interactions, but it is also often gathered via pixel tracking, cookies, and device IDs.
Although DMPs can and do collect and analyze your first-party data, they only do so for the purposes of generating anonymous user profiles and audience insights. First-party data is usually primarily managed with a customer data platform (CDP), which collects and organizes of all your first-party data and can then provide it to your DMP so that it can be incorporated into your audience profiles.
Like first-party data, second-party data generally includes information about customers and their behaviors, and is collected via direct interactions, pixel tracking, or cookies. The main difference is that the data was collected firsthand by a different organization—not your own.
Second-party data offers you the opportunity to look outside your current customer pool and get information about wider audiences that you may be interested in marketing to. Second-party data can be purchased or exchanged between companies via mutually beneficial agreements. The actual exchange of second-party data is facilitated through DMPs.
Since a DMP can’t run on first-party data alone, second-party data can be used to supplement and scale your first-party data, which allows you to start building audience profiles and generating insights, even if your current customer pool is too small for large-scale analysis.
Third-party data is data collected from a variety of sources, packaged together, and made available for purchase. Essentially, large data aggregators purchase first-party data from publishers and other data owners and collect it into large data sets, which they then make available for purchase through DMPs. Third-party data is used to supplement your first- and second-party data to add even more depth and precision to your customer targeting profiles.