DMPs & DSPs: Debunking Myths & Misconceptions

General Jan 29, 2016

We couldn’t help to notice there has been chatter (see FUD) in the market recently about the alleged disadvantages of employing a standalone data management platform (DMP) instead of using a DSP/DMP hybrid. As the provider of the market-leading DMP, we had a few opinions of our own we thought worth sharing.  Elmer Fudd

There are three issues that come up most often when folks look to insert a little FUD into otherwise thoughtful industry dialogue.

1) Standalone DMPs lose 40% of their audience by relying on their own ID: The assertion that standalone DMPs cannot match users effectively because they don’t share the same user IDs as DSPs is ridiculous. Any DMP that does frequent two-way user matching, while maintaining the user match table can achieve extremely high match rates. At Krux, we consistently see percentages in the mid-90% range. If you were to believe this low match rate argument, then marketers that license one of the major standalone DMPs would never use any of the DSPs that offer bolted on DMPs. Yet, the standalone data platforms seem to be gaining dramatic adoption among marketers.

2) Milliseconds matter: We have also heard the claim that standalone DMPs cannot effectively control delivery frequency because their ID matches with DSPs can take up to 24 hours to complete. While it is true that a combined DMP/DSP solution will match in near real-time, that argument conveniently ignores the larger point – this only works if a marketer is doing 100% of its addressable marketing inside of one DSP otherwise the same frequency issue will arise. And there is not a single major marketer that would consider restricting its addressable marketing strategy to a single DSP. Furthermore, since every DSP competes against every other DSP there is no way any DSP would allow another to conduct a two-way user match within its platform, making the combination DMP/DSP solution a complete non-starter for any marketer that values its first party audience data.

3) DMPs don’t have access to all of your media data: This is the tired but still oft used argument that standalone DMPs cannot place pixels on the Google Display Network to capture impression level data, and are therefore “blind” to a good portion of media data. This is highly disingenuous, since Google revised its policy, and this issue is easily solved with a server-to-server user match with DoubleClick Audience Center. The fact that, a year after this non-event occurred, some in our industry are still using it as a differentiator is revealing.

Finally, perhaps most importantly, we would like to note that the recent Forrester Wave™: Data Management Platforms, Q4 2015 Report, which was an exhaustive review of the data management landscape, did not include a single DMP/DSP hybrid.

As always, to find out more, feel free to contact the Krux team today.