Data Management Platform (DMPs) technology faces significant changes as Google’s plan to phase out third-party cookies has been pushed back from 2022 to 2024. Despite the delay, the focus on data security and privacy regulations is still increasing. As a result, tech companies are making it harder for brands to track consumers. This is creating significant challenges for businesses, particularly in advertising and marketing. However, it’s also creating opportunities for those who can adapt. One of the most important changes on the horizon is the decline of DMPs.
For years, data management platforms (DMPs) were the go-to tools for marketers to target ads and measure performance. However, these platforms are losing value as third-party cookies are being phased out. Gartner, a global research and advisory firm, released a report in 2020 titled The Data Management Platform Endgame. In this report, Gartner acknowledged that the cookie data that fuels DMPs is disappearing, and brands should consider moving away from these tools. Some of the biggest names in the industry, like Adobe, Salesforce, and Oracle, are also preparing for the end of DMPs.
Customer data management platforms (CDPs) are now recommended as the best alternative to DMPs. CDPs focus on first-party data, which is becoming increasingly crucial as third-party tracking methods decline. First-party data is collected directly from customers through their interactions on your website or app. It is far more reliable and secure than third-party cookie data. Tech companies like Adobe, who once referred to CDPs as a passing trend, are now urging brands to switch over, highlighting that DMPs will eventually become obsolete.
Salesforce is another big name that is transitioning away from DMP management. Their Audience Studio DMP is no longer available, signaling that this technology is extinct. As a result, brands will need to shift focus from DMPs to customer data management platforms if they want to stay competitive in a post-cookie world.
So, how can businesses continue to perform critical tasks like prospecting, retargeting, and real-time web personalization without a DMP? The answer lies in CDPs. Nearly 62% of marketers are already shifting their focus to first-party data in preparation for the end of third-party cookies, and many of them are using CDP technology to do so. CDPs allow companies to gather, manage, and use first-party data to create personalized marketing strategies without relying on cookies.
If you’re still using a DMP, it’s time to start preparing to phase it out. Here’s a two-phase process that can help:
- Phase One: Deploy a CDP and integrate it with your existing DMP. In this stage, the DMP will bridge your data and the various advertising platforms you use. Still, the CDP will be the central hub of your marketing efforts. This allows you to continue using your DMP while gradually transitioning to the CDP.
- Phase Two: Once your DMP contract expires, fully integrate your CDP with all the necessary platforms and stop using the DMP altogether. By this point, your CDP will be your primary tool for managing customer data and running your marketing campaigns.
As you start looking at CDP options, it’s essential to choose wisely. Not all CDPs are created equal. Some marketing cloud vendors offer CDPs as a quick replacement for DMPs. However, these solutions, like lookalike modelling, may still rely on DMP technology for specific functions. When selecting a CDP, focus on finding a tool that offers scalability, flexibility, and strong privacy controls. This will ensure that your business can handle the increasing demands of data privacy while continuing to deliver personalized customer experiences.
It’s also crucial to recognize that CDPs are not a one-to-one replacement for DMPs. With the disappearance of third-party cookies, your entire marketing strategy will need to shift. Relying solely on first-party data will require you to rethink targeting ads, measuring performance, and engaging with customers. However, this shift can benefit brands investing in the best data management platforms that prioritize data security and customer trust.
While Google has delayed the death of the cookie, DMPs are still on their way out. Instead of holding onto a tool that will soon become outdated, businesses should embrace this opportunity to adopt new technologies better suited for a cookieless future. By focusing on data management platforms (DMP) that prioritize first-party data and privacy, you’ll be prepared for the future and better equipped to build stronger, longer-lasting relationships with your customers.
