{"id":3104,"date":"2023-09-29T23:22:00","date_gmt":"2023-09-29T23:22:00","guid":{"rendered":"https:\/\/qa-site.axamit.com\/?p=3104"},"modified":"2024-04-19T08:36:57","modified_gmt":"2024-04-19T08:36:57","slug":"cdp-vs-dmp","status":"publish","type":"post","link":"https:\/\/axamit.com\/en\/blog\/adobe\/cdp-vs-dmp\/","title":{"rendered":"CDP vs. DMP: Choosing Your Data Unifying and Activation Tool"},"content":{"rendered":"<div class=\"custom-toc\"><ul><li class=\"h2-toc\"><a href=\"#what-is-a-customer-data-platform-cdp-\">What is a Customer Data Platform (CDP)?<\/a><\/li><li class=\"h2-toc\"><a href=\"#what-is-a-data-management-platform-dmp-\">What is a Data Management Platform (DMP)?<\/a><\/li><li class=\"h2-toc\"><a href=\"#what-is-the-difference-between-cdp-and-dmp-\">What is the difference between CDP and DMP?<\/a><\/li><li class=\"h2-toc\"><a href=\"#conclusion\">Conclusion<\/a><\/li><li class=\"h2-toc\"><a href=\"#faq\">FAQ<\/a><\/li><\/ul><\/div>\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Do you recall the magic medicine Mary Poppins had? It tasted like anything you fancied. When poured from one bottle, it became lime cordial for Jane, strawberry for Michael, and even rum punch for Mary Poppins herself.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Today\u2019s marketers aim for a similar effect with their content and offers\u2014making experiences feel personal for every customer. Without magic on hand, they rely on software. Customer data platform or data management platform, for instance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At first sight, a CDP and a DMP are very similar tools. They both help you collect data from multiple sources and use it for precise targeting and personalization. However, they deal with distinct types of data, which reflects on implementation and use cases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Which of the tools is better, should you use both, or neither one is needed for that particular goal of yours? Let\u2019s figure this out step by step.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h2 class=\"wp-block-heading\" id=\"what-is-a-customer-data-platform-cdp-\">What is a Customer Data Platform (CDP)?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A customer data platform (CDP) creates a unified database where every one of your customers has a profile.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Profiles combine information about your customers and their interactions with your company across channels and touchpoints, all collected following their preferences.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can connect your CDP with other systems that rely on the information stored in the customer profiles to personalize marketing campaigns, website content, and customer services, at scale.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"main-features-and-capabilities-of-cdps\">Main Features and Capabilities of CDPs<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The customer data platform is a relatively new type of software. This is why, the feature set varies significantly from vendor to vendor.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While some of the solutions are built around identity management as a core capability, others seem to focus on managing tags that collect data.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, CDPs such as Tealium and Segment function as data integration tools.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lytics and Redpoint are quite robust and help with marketing campaign orchestration and personalization.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the enterprise segment, you can find even more comprehensive CDPs provided by Salesforce, Microsoft, Oracle, and Adobe.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To help you get an idea of the most advanced capabilities that you can find in a CDP, we\u2019ll list a bunch of outstanding features of&nbsp;<a href=\"https:\/\/axamit.com\/adobe-experience-cloud\/adobe-cdp\/\" data-type=\"page\" data-id=\"1907\">Adobe RT-CDP<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The complete list of RT-CDP features with detailed descriptions is available on the&nbsp;<a href=\"https:\/\/business.adobe.com\/products\/real-time-customer-data-platform\/features.html\" target=\"_blank\" rel=\"noopener\">Adobe site<\/a>. Here are the features worth highlighting:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Unified people and account profiles<\/strong>, combining personal and company data.<\/li>\n\n\n\n<li><strong>Real-time profile enrichment<\/strong>, adding data to profiles as soon as activity happens.<\/li>\n\n\n\n<li><strong>People &amp; account identity resolution<\/strong>&nbsp;for accurate person-to-account matching.<\/li>\n\n\n\n<li><strong>Marketing-friendly segmentation<\/strong>, user-friendly drag-and-drop segmentation canvas.<\/li>\n\n\n\n<li><strong>Data collaboration<\/strong>, privacy-friendly data partnerships not reliant on 3-party cookies.<\/li>\n\n\n\n<li><strong>Standardized data taxonomy<\/strong>, ensuring that data is compatible, unified, and accurate.<\/li>\n\n\n\n<li><strong>Vendor tag management<\/strong>, to collect\/send data from\/to all available platforms.<\/li>\n\n\n\n<li><strong>Data labeling<\/strong>, to ensure appropriate private and public data access and use.<\/li>\n\n\n\n<li><strong>Data usage enforcement<\/strong>, leveraging automatic alerts about data misuse attempts.<\/li>\n\n\n\n<li><strong>Customer consent management<\/strong>&nbsp;and use of both known and unknown identifiers.<\/li>\n\n\n\n<li><strong>One-to-one personalization<\/strong>&nbsp;for granular and timely experience personalization.<\/li>\n\n\n\n<li><strong>Behavior-informed experiences<\/strong>, triggering real-time responses to conversion events.<\/li>\n\n\n\n<li><strong>AI-powered insights and propensity scoring<\/strong>, empowering profile-level predictions.<\/li>\n\n\n\n<li><strong>In-context reports and metrics<\/strong>, out-of-the-box reports, charts, and dashboards.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These and other features enable companies with large customer bases to deliver hyper-relevant experiences with speed and accuracy. Now, let\u2019s see what you can do with the help of a CDP.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"when-to-use-a-cdp-\">When to use a CDP?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s look at an example of including a CDP in the <a href=\"https:\/\/axamit.com\/blog\/adobe\/customer-experience-automation\/\" data-type=\"post\" data-id=\"8170\">customer experience personalization process<\/a> for an e-commerce business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Say you have an online store running on <a href=\"https:\/\/axamit.com\/en\/adobe-experience-cloud\/adobe-commerce\/\">Adobe Commerce<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You want to optimize every step across your customer\u2019s journey\u2014from their first anonymous visit to doing regular purchases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With Adobe RT-CDP, you can do that.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You connect your Adobe Commerce store to Adobe RT-CDP. Your store becomes both a data source and a destination for the CDP. It uses the first-party data collected from the store to enrich customer profiles.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With every action a visitor takes in your online store, their profile in the CDP becomes more detailed and up-to-date.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As soon as they search for a particular product, view the page of the product, create an account or log in, add the product to the cart, and go to check out\u2014it\u2019s reflected in their profile right away.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Upon receiving every piece of new data the CDP \u2018considers\u2019 if it should add this particular shopper to one of the audience segments (or remove them). It also \u2018considers\u2019 if a particular trigger should work at each step and defines what offers to display, what cart price rules to apply, or what discounts to offer, you name it.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a3339eb9d13c&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a3339eb9d13c\" class=\"wp-block-image size-full wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"2000\" height=\"1439\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/d11cw4yu2zh4tp.cloudfront.net\/wp-content\/uploads\/2023\/09\/08110603\/Commerce-data-collected-and-activated-in-CDP.webp\" alt=\"\" class=\"wp-image-6441\" srcset=\"https:\/\/d11cw4yu2zh4tp.cloudfront.net\/wp-content\/uploads\/2023\/09\/08110603\/Commerce-data-collected-and-activated-in-CDP.webp 2000w, https:\/\/d11cw4yu2zh4tp.cloudfront.net\/wp-content\/uploads\/2023\/09\/08110603\/Commerce-data-collected-and-activated-in-CDP-300x216.webp 300w, https:\/\/d11cw4yu2zh4tp.cloudfront.net\/wp-content\/uploads\/2023\/09\/08110603\/Commerce-data-collected-and-activated-in-CDP-1024x737.webp 1024w, https:\/\/d11cw4yu2zh4tp.cloudfront.net\/wp-content\/uploads\/2023\/09\/08110603\/Commerce-data-collected-and-activated-in-CDP-768x553.webp 768w, https:\/\/d11cw4yu2zh4tp.cloudfront.net\/wp-content\/uploads\/2023\/09\/08110603\/Commerce-data-collected-and-activated-in-CDP-1536x1105.webp 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">For example, a shopper can be added to the Nike Fan audience after browsing this brand\u2019s shoes. Next time they visit your store\u2019s home page, they\u2019ll see a customized banner.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This particular person will see a Nike banner featuring shoes instead of a brand-neutral default banner that might be featuring something of no particular interest to them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Similar profile updates and segmentations happen inside CDP every time new information is collected about every customer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As data is accumulated, the profile becomes more robust and granular. So, you can optimize every step of your customer\u2019s journey based on both historical and real-time in-session data.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h2 class=\"wp-block-heading\" id=\"what-is-a-data-management-platform-dmp-\">What is a Data Management Platform (DMP)?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A data management platform (DMP) collects and consolidates pseudonymous data about audiences visiting 3-party, 2-party, and your own online properties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The platform can help you segment audiences to improve targeting and build lookalike audiences to broaden the reach of your marketing and advertising campaigns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Most often DMPs work in tandem with advertising platforms helping companies optimize and scale customer acquisition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To build and extend audiences, DMPs source information from data brokers, marketplaces, aggregators, ad exchanges, and data enrichment services.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"main-features-and-capabilities-of-dmp\">Main Features and Capabilities of DMP<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">DMPs have been in use for a long time. Among the most advanced solutions, there is&nbsp;<a href=\"https:\/\/axamit.com\/blog\/adobe\/audience-manager-dmp\/\" data-type=\"post\" data-id=\"608\">Adobe Audience Manager<\/a>, which seamlessly integrates with both Adobe and non-Adobe applications.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another solution is Salesforce DMP (Audience Studio), which offers versatile customer data management capabilities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One more player, Oracle BlueKai, on the other hand, prioritizes data activation and audience segmentation for advertising purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a nutshell, DMPs function as data pipelines. They collect information from various sources, transform it, and deliver it to multiple destinations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite variations among DMP solutions, their capabilities are generally similar:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Data normalization<\/strong>&nbsp;organizes data into a common format, removing redundancy.<\/li>\n\n\n\n<li><strong>Data enrichment<\/strong>&nbsp;enhances data quality by adding additional data points.<\/li>\n\n\n\n<li><strong>Data segmentation<\/strong>&nbsp;categorizes data into distinct groups based on similarities.<\/li>\n\n\n\n<li><strong>Profile merging<\/strong>&nbsp;consolidates user profiles that share a common identifier.<\/li>\n\n\n\n<li><strong>Audience creation<\/strong>&nbsp;groups user profiles with common attributes to form target audiences.<\/li>\n\n\n\n<li><strong>Taxonomy creation<\/strong>&nbsp;helps organize and structure data in a hierarchy.<\/li>\n\n\n\n<li><strong>Data activation<\/strong>&nbsp;sends DMP segments into tools for targeted advertising.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s crucial to keep in mind that audiences are made using anonymized IDs, like device IDs, cookies, or hashed email addresses. These IDs don\u2019t directly show a person\u2019s private information.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"when-to-use-a-dmp-\">When to use a DMP?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Typically, you would use a DMP to enhance your programmatic advertising within your partner\u2019s network.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You connect your DMP to a Demand-Side Platform (DSP) that automatically buys ad impressions on your partner\u2019s websites. The DSP and DMP synchronize unique user identifiers between their databases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This synchronization allows your DSP to utilize the audiences you\u2019ve created in the DMP for precise targeting and the purchase of more relevant ad impressions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When your partner\u2019s website sends bid requests to your DSP, the DSP compares the data about the website visitors with the information about target audiences from your DMP.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">DSP decides whether to bid on an impression for a specific visitor or not, based on the most comprehensive data set available to your company.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a3339eb9e612&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a3339eb9e612\" class=\"wp-block-image size-full wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"2000\" height=\"626\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/d11cw4yu2zh4tp.cloudfront.net\/wp-content\/uploads\/2023\/09\/08110630\/Programmatic-Ad-Targeting-with-pseudonymous-DMP-Audiences.webp\" alt=\"\" class=\"wp-image-6442\" srcset=\"https:\/\/d11cw4yu2zh4tp.cloudfront.net\/wp-content\/uploads\/2023\/09\/08110630\/Programmatic-Ad-Targeting-with-pseudonymous-DMP-Audiences.webp 2000w, https:\/\/d11cw4yu2zh4tp.cloudfront.net\/wp-content\/uploads\/2023\/09\/08110630\/Programmatic-Ad-Targeting-with-pseudonymous-DMP-Audiences-300x94.webp 300w, https:\/\/d11cw4yu2zh4tp.cloudfront.net\/wp-content\/uploads\/2023\/09\/08110630\/Programmatic-Ad-Targeting-with-pseudonymous-DMP-Audiences-1024x321.webp 1024w, https:\/\/d11cw4yu2zh4tp.cloudfront.net\/wp-content\/uploads\/2023\/09\/08110630\/Programmatic-Ad-Targeting-with-pseudonymous-DMP-Audiences-768x240.webp 768w, https:\/\/d11cw4yu2zh4tp.cloudfront.net\/wp-content\/uploads\/2023\/09\/08110630\/Programmatic-Ad-Targeting-with-pseudonymous-DMP-Audiences-1536x481.webp 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s important to note that you don\u2019t have specific information about the individuals in your audience, nor do you know who the visitors to your partner\u2019s website are.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, if the software identifies a match between pseudonymous identifiers in your audience and your partner\u2019s site visitors, it proceeds to purchase an ad impression.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h2 class=\"wp-block-heading\" id=\"what-is-the-difference-between-cdp-and-dmp-\">What is the difference between CDP and DMP?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As it has been mentioned above, the main difference between the two platforms is in the ways of handling data of different types:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>1-Party Data<\/strong>&nbsp;is collected directly by your company from its own interactions with customers or users. It comes from sources like website visits, mobile apps, CRM systems, and customer surveys. It typically uses personally identifiable information (PII) such as email addresses, names, phone numbers, and customer IDs. It may also include behavioral data like browsing history and purchase behavior.<\/li>\n\n\n\n<li><strong>2-Party Data<\/strong>&nbsp;is obtained through partnerships or agreements between two companies. In this arrangement, one company shares its 1st-party data with another. For example, a retailer might share its customer data with a manufacturer for joint marketing efforts. This data can include a variety of identifiers, including PII, depending on the agreement between the two companies, and include behavioral data and demographic information.<\/li>\n\n\n\n<li><strong>3-Party Data<\/strong>&nbsp;is collected by data providers that are not directly affiliated with the company using the data. These sources gather information from various online and offline channels, such as social media, public records, and online behavior. It often relies on pseudonymous identifiers, such as cookies and device IDs, to protect users\u2019 privacy.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">CDPs primarily focus on known customer data, including personally identifiable information (PII). And DMPs focus on pseudonymous third-party data collected from external sources.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s summarize the difference between the tools in a DMP vs. CDP Comparison table.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><th>Characteristics<\/th><th>Data Management Platform<\/th><th>Customer Data Platform<\/th><\/tr><tr><td>Application<\/td><td>Focuses on attracting customers by improving ad targeting and simplifying media buying.<\/td><td>Covers the complete customer journey, including attracting, keeping, and managing customer relationships.<\/td><\/tr><tr><td>Data Types<\/td><td>Uses partially anonymous data, mainly 3rd-party data enriched with masked 1st-party data.<\/td><td>Handles identifiable data, primarily 1st-party data, with some 2nd-party data from partners.<\/td><\/tr><tr><td>Use case<\/td><td>It\u2019s mostly used for pseudonymous audience segmentation and creating lookalike audiences.<\/td><td>It\u2019s used to build a comprehensive and up-to-date 360-degree view of identifiable customers.<\/td><\/tr><tr><td>Profile Identifier<\/td><td>Utilizes anonymous digital IDs (non-PII), like cookie IDs, IDFA, etc.<\/td><td>Generates customer profiles with lasting IDs (PII), such as customer ID, name, email, address, etc.<\/td><\/tr><tr><td>Data Retention<\/td><td>Stores data for brief periods mainly for advertising targeting.<\/td><td>Keeps data for extended periods, accumulating information over customers\u2019 lifecycles.<\/td><\/tr><tr><td>Data Privacy<\/td><td>Poses a significant risk of privacy regulation violations.<\/td><td>Has a low risk of violating privacy regulations.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In a world with stricter privacy rules and no more third-party cookies, both Customer Data Platforms (CDPs) and Data Management Platforms (DMPs) are changing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CDPs are good at handling data directly from customers and respecting their privacy choices. They successfully help companies follow privacy laws and offer personalized experiences.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In contrast, DMPs using third-party cookies for tracking face challenges and must find alternative methods to collect data while complying with laws.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h2 class=\"wp-block-heading\" id=\"conclusion\">Conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Deciding between Customer Data Platforms and Data Management Platforms for your marketing needs can be difficult.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Both options have advantages, and your specific requirements will determine which one is the right fit for you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether you\u2019re already using one of these platforms, considering a switch, or just starting\u2014it can be puzzling. And we\u2019re here to help.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you opt for <a href=\"https:\/\/axamit.com\/en\/adobe-experience-cloud\/\">Adobe Experience Cloud<\/a>, <a href=\"https:\/\/axamit.com\/en\/\">Axamit<\/a> can assist you in implementing and customizing Adobe RT-CDP. Our team provides technical support throughout the entire process and can help your employees ramp up the required skills to use it effectively.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h2 class=\"wp-block-heading\" id=\"faq\">FAQ<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"does-gartner-have-a-magic-quadrant-for-customer-data-platforms-\">Does Gartner have a Magic Quadrant for customer data platforms?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">As the technology is still new, Gartner has not released a Magic Quadrant for CDPs yet.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"how-does-dmp-work-with-cdp-\">How does DMP work with CDP?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">DMPs and CDPs can work together effectively. DMPs concentrate on third-party data for advertising and targeting, while CDPs centralize first-party customer data for personalization and retention. Combining them enables you to manage marketing campaigns for both acquiring new customers and keeping existing ones.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is a Customer Data Platform (CDP)? What is a Data Management Platform (DMP)? What is the difference [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":5015,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-3104","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-adobe"],"acf":{"cta":"Give Us a Call","phone":"+1 (438) 383-6878","meta-description":"Discover the right data solution for your business as we explore the differences between CDPs and DMPs, and the types of data they handle, and bring in real-world examples of typical use cases for these platforms."},"_links":{"self":[{"href":"https:\/\/axamit.com\/en\/wp-json\/wp\/v2\/posts\/3104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/axamit.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/axamit.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/axamit.com\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/axamit.com\/en\/wp-json\/wp\/v2\/comments?post=3104"}],"version-history":[{"count":1,"href":"https:\/\/axamit.com\/en\/wp-json\/wp\/v2\/posts\/3104\/revisions"}],"predecessor-version":[{"id":8248,"href":"https:\/\/axamit.com\/en\/wp-json\/wp\/v2\/posts\/3104\/revisions\/8248"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/axamit.com\/en\/wp-json\/wp\/v2\/media\/5015"}],"wp:attachment":[{"href":"https:\/\/axamit.com\/en\/wp-json\/wp\/v2\/media?parent=3104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/axamit.com\/en\/wp-json\/wp\/v2\/categories?post=3104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/axamit.com\/en\/wp-json\/wp\/v2\/tags?post=3104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}