The Future of CDP: DMP and CDP Evolution

The Future of CDP: DMP and CDP Evolution

Customer data platforms (CDP) and Data management platforms (DMPs) have been competing for the top place to extract actionable information from customer data in recent years. Ignoring the marketing hype, which one is the most effective at delivering highly relevant experiences through the appropriate channels? Which do you think is the smartest MarTech investment for personalization right now, and why?

Before we dive deep into the CDP and DMP, let’s take a closer look at CDP and the evolution of DMP and CDP.

What is a CDP?

Some common features of the CDP are customer database, multichannel campaign management, marketing automation, and real-time interaction management. CDPs are used when a marketing database with user-level data is required. CDPs are systems that provide insight and engagement. Marketers can use an analytics system to discover new segments and build predictive models. Additionally, an engagement system allows them to produce real-time (or near real-time) personalization.

DMP vs. CDPs – What you need to know

CDPs and DMPs are different, but they work well together. Some capabilities of the CDP & DMPs include Segmentation,  reporting, predictive scoring, identity resolution and attribution support.

If you intend to use both, you should first set up your DMP in order to prepare for your CDP. As an initial step, collect data from multiple sources and map devices to identities, manage consent, and create pseudonymous profiles based on first-party data.

You will need a unified customer profile and smart segmentation for total customer engagement, as well as the ability to engage with customers across channels. These includes ads, social media, mobile, websites, email, APIs, and much more.

To bring everything together, you must be able to analyse these interactions and use them to create and refine customer profiles. All of these factors can be accomplished by integrating your DMP and CDP and the possibilities are endless.

How does CDP get the upper hand over DMP?

Companies has seen the evolution of digital marketing platforms. CRM (customer relationship management) systems and customer databases significantly grew in the 1990s. When DMPs first became popular, they were hailed as a marketing panacea. CDPs are gaining popularity now. As per experts, this progression occurs starting from the core broadcasting to one-on-one discussions.

The changing landscape of user data available to digital platforms is driving this evolution. Understanding the differences between CDPs and DMPs is helpful in understanding why CDPs are now surpassing DMPs.

DMPs eventually rely on third-party data, such as cookies, as well as anonymized first-party data. As a result, DMPs are best for syncing anonymous personas with cookies, then syncing this info with ad networks. DMPs are most suited for use cases like increasing media purchase and improving ad targeting efficiency, and they ultimately drive ad tech.

CDPs are companies that combine first-party customer data from a variety of internal data silos with second- and third-party data to create a comprehensive view of individual customers. As a result, CDP applications are much more diverse. Marketers can reach  users with relevant messages and retarget them almost on any channel because they come with multiple out-of-the-box integrations.

Furthermore, CDPs have the ability to speak to every individual customer and truly connect with who they are as a person, whether they are on an ad network, publisher side, or on a website.

The main reason why CDPs are replacing DMPs is, CDPs create unified, persistent customer profiles. This allows marketers to use their data to personalise messages across all channels and deliver more customised experiences based on a true view of individual customers.

Here are a few of the benefits that CDP and DMP integrations can provide:

  1. Store displays that are interactive
  2. Dynamic applications
  3. Personalization on the internet and through mobile apps is becoming more common.
  4. Personalised offers across all channels
  5. Chatbots precisely reflect the customer’s actions.

All of these apps will improve marketing’s lifetime value and make impact measurement easier. There will be a lot more automation and coding in the future, but it will all require a unified customer view. CDPs and DMPs are complementary, parallel, and highly integrated systems. Even if they evolve far into the future, they’ll most likely remain this way.

What is a Customer Data Platform and how to use it?

Modern marketers can take advantage of CDPs or vertical CDPs in four ways: data unification, identity resolution, people-based marketing, and real-time engagement across channels.

1. Unification of data

Each year, the number of data sources utilized by enterprise marketing teams grows quickly. A research states that significant data sources are growing at a 25% annual rate but there are others that are much lower. If you extrapolate this 25% growth rate out ten years, you will have gone from 15 to 30 data sources. All of these disparate data sources must be unified for marketers to have a unified and precise view of their customers, and CDPs can help.

2. Marketing that is focused on people

Customer-based marketing means that you value your customers. In the early day, marketing was either channel- or campaign-focused. It’s been difficult for many businesses to refocus all of their marketing efforts on individuals, but it will be worth it in the end. CDPs will play an important role in the future of people-based marketing.

3. Customer analytics that are more insightful

Customer analytics entails analysing customer behaviour throughout the customer journey to aid in marketing, product development, and sales decisions, among other things.

Furthermore, it is made up of four main components:

  1. Data gathering
  2. Data classification
  3. Information storage
  4. Data evaluation

Each of those components isn’t very useful on its own, but when you utilize a CDP to combine them all, you’ll have a powerful customer analytics platform. You can also greatly enhance customer loyalty and retention by implementing a proper customer analytics system. This ultimately results in improved customer lifetime value.


In general CDPs are large and complicated programmes. When used correctly, one can provide you with a wealth of information about your customers. After that, you can apply what you’ve learned to improve your marketing, sales, and even your product. A CDP could be the right tool for you if you’re ready to move to the next level in understanding your customers.

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