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Data Management PlatformsProgrammatic advertising has made its presence felt in the digital advertising circles, owing to its unprecedented targeting capabilities. This trend is being observed not just in the USA, but across the globe. It is an indispensable asset while dealing with fragmented markets like India. In this 8th installment of the #SimplyProgrammatic series, Ashish Shah (Founder & CEO, Vertoz) elucidates upon how brands can leverage Data Management Platforms (DMPs) to forge data-driven strategies, and get better ROI from their as spends. He also explains why it is practically more relevant in the Indian context and how it is all set to take the Indian digital advertising space by storm.

From basic demographic to advanced audience segments, programmatic advertising platforms offer a wide range of targeting options. Integrating with Data Management Platforms (DMPs) enables these platforms to process, analyze and segment the audience sets and helps brands to reach the relevant customers by leveraging these targeting options.

The importance of data cannot be stressed enough. DMPs facilitate leveraging the audience data by studying and analyzing their behaviour, understanding their like and preferences, and bucketing them into relevant audience segments. DMPs provide first-party and third-party data. They process and segment this data as per requirements from the advertisers. This data is then passed to the Demand Side Platform (DSP) for targeting. During the campaign, the DMP analyzes the performance and pulls the reports on each audience segment in real-time. It then feeds it back to the DSP which then optimizes the targeting and bidding accordingly.

It is important to understand that brands must reach only the relevant audiences in order to achieve optimum utilization of ad budgets, as they have high chances of converting, immediately or in future. The best way to achieve this objective is to use techniques like programmatic advertising.

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