The Importance of a Data Management Platform for Startups

In programmatic advertising, DMP (Data Management Platform) is a platform that collects, manages and analyzes customer data and other data to increase the effectiveness of digital advertising campaigns.

DMPs enable advertisers to combine data from multiple sources including first-party data as well as third-party data, such as user behavior data, demographic data, and transaction data, to create more accurate segmentation and more efficient targeting strategies. By using DMP, advertisers can better understand their audience, optimize ad serving and measure campaign results in greater detail.

In short, deep DMP programmatic advertising is a platform for managing and leveraging data to improve the results of digital advertising campaigns.

Changing the way startups do business with DMP

DMP (Data Management Platform) is changing the way startups do business in the future by having a significant impact on data management, decision making, and marketing strategy. Here are some reasons why DMP will change the way startups do business going forward:

1. Better personalization: DMP enables companies to better personalize their communications and product offerings to customers. This helps build strong relationships, increase loyalty and increase conversion rates.
2. Smarter decision making: DMP provides in-depth insights into marketing campaign performance and customer behavior. Companies can use this data to make smarter decisions in marketing strategy, product development and budget allocation.
3. More effective ad targeting: DMP allows companies to perform more precise targeting of ads to relevant audiences. This reduces wastage of advertising budgets and increases conversion rates.
4. Improve customer experience: DMP helps companies understand customers holistically, including preferences and purchase history. With this understanding, companies can provide customers with a more personalized and relevant experience.
5. Innovation and growth: DMP opens up new opportunities in data usage and analysis. Companies can explore new insights, identify market trends, and launch new products or services. DMP also helps companies manage business growth on a larger scale and achieve competitive advantage.

With DMP, companies can become more customer focused, more responsive to market needs, and more effective in marketing strategies. DMP plays an important role in addressing challenges and opportunities regarding the use of data in the business of the future.

Three reasons DMP is effective at helping startups

Here are three reasons why DMP is effective in helping startups drive better ways of marketing digitally:

1. Segment tthat target lmore tfour: DMP enables startups to aggregate and analyze multiple data sources to identify more precise target segments. With richer information about audience behavior, preferences, and demographics, startups can make more accurate segmentations and deliver relevant messages to each segment. This results in more effective marketing campaigns with higher conversion rates.
2. personalization that lmore baik: DMP allows startups to deliver more personalized messages and offers to customers. With a deeper understanding of customer preferences and needs, startups can leverage DMP to create customized experiences. For example, they can email relevant content, customize websites based on purchase history, or show ads that match customer interests. Better personalization increases customer engagement and strengthens the bond with the brand.
3. Measurement and pthe optimization akura: DMP enables startups to collect and analyze marketing campaign performance data in depth. Startups can track user behavior, conversion rates and other metrics to understand the effectiveness of their campaigns. With this insight, startups can identify areas that need improvement and make appropriate optimizations. DMP also facilitates A/B testing and multi-channel measurement, enabling startups to test new marketing strategies and optimize their spending based on measurable results.

Overall, DMP helps startups use customer data more efficiently, drive better personalization, and improve the measurement and optimization of their marketing campaigns. With a more focused approach and more in-depth information about the target audience, startups can increase conversion rates, build customer loyalty and achieve sustainable growth in a competitive digital marketing environment.

Example use case DMP

Indonesia is a fast growing market in the tourism industry, with a growing population and rising incomes, more and more people want to travel. As a result, many Online Travel Agents (OTA) have entered the market to take advantage of this opportunity

Now that the COVID-19 pandemic is under control and borders around the world have opened, Indonesia is expecting new growth in the tourism sector. In collaboration with Indosat Ooredoo Hutchison (IOH), MI-DMP™ can provide insight into the OTA market for the three big players in Indonesia: Traveloka, Agoda, and Booking.com.

Indonesian OTA market share in Q1 2023

The Indonesian OTA market has been dominated by Traveloka, Agoda, and Booking.com for the last few years. In analyzing active users for the first quarter of 2023, Agoda experienced an increase of 17,7% compared to Booking.com which only experienced an increase of 5,6%. In contrast, Traveloka's market share showed a drastic decline of 21,8% in one quarter. This can be caused by several factors, including the marketing efforts of each company.

Indonesian OTA market traffic trends in Q1 2023

According to data MI-DMP™, trends in the last quarter show that all OTAs peaked during the Christmas season and declined thereafter. Compared to others, Booking.com has remained fairly consistent in user numbers, while Traveloka has peaked and declined at some point in the last four months. One possibility for this is that Traveloka focuses on the domestic travel market which allows them to adapt their services to the needs and preferences of Indonesian tourists.

Audience demographics

MI-DMP™ displays useful information for Advertisers and Agencies to find their target audience from multiple dimensions including location and demographic data.

In terms of age distribution, we can see a clearer difference. The millennial generation aged 25-34 prefers to use Traveloka. This can be attributed to its strategy of focusing on digital marketing, using social media platforms such as Instagram to target millennial and Gen Z travelers. The audience of Agoda and Booking.com in Indonesia is slightly older, with a larger percentage of users aged 35-54. They tend to have a higher income compared to Traveloka users, with many of them falling under the upper middle class income bracket.

Overlap Platforms

It is also interesting to note that users do not only use one platform. Traveloka, Agoda, and Booking.com have been able to show relatively little overlap among their user bases. The fact that only around 5% of OTA users in Indonesia have used these three platforms in the last quarter is perhaps quite surprising, meaning that only 18,5% of users tend to compare prices across platforms before placing an order.

Comparison heavy users vs normal users

the weight of 35-44 year olds from Booking.com is also 1% higher than normal users, indicating a wider age range for heavy users, compared to other platforms.

Top Interested Apps

Known for its comprehensive data set across the digital world, MI-DMP™ also provides traffic analysis for clients to stay ahead of the competition. It's no surprise that users of all three platforms share the same interests when it comes to behavior online.

Specifically looking at the apps in the top categories, we can conclude that users from the three platforms may have different preferences for social media and e-commerce apps. Traveloka users prefer using Shopee over others, while Agoda users seem to prefer using Tik Tok over others.

Conclusion

Overall, the OTA market is still being shaped by the dominant players. By analyzing their audience's demographics, interests and behavior patterns with DMP, these platforms can not only provide a personalized and seamless ordering experience, but can also scale their business to a more precise target audience. As the online travel agent industry grows in Indonesia, understanding the audience will be key to staying competitive and relevant in the market.

-

This review was written by the team from Groundhog Mobility Intelligence exclusive to DailySocial.id