{"id":14801,"date":"2022-10-01T17:52:48","date_gmt":"2022-10-01T12:22:48","guid":{"rendered":"https:\/\/www.adpushup.com\/blog\/?p=14801"},"modified":"2022-11-16T21:00:30","modified_gmt":"2022-11-16T15:30:30","slug":"what-is-a-customer-data-platform-should-publishers-invest-in-it","status":"publish","type":"post","link":"https:\/\/www.adpushup.com\/blog\/what-is-a-customer-data-platform-should-publishers-invest-in-it\/","title":{"rendered":"What Is A Customer Data Platform?","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n<p>Customer data platforms (CDP) are a relatively new technology in the <a target=\"_blank\" href=\"https:\/\/www.adpushup.com\/blog\/ad-tech-predictions\/\" rel=\"noopener\">ad tech industry<\/a>. They will now play an important role in helping publishers gain more insights about their consumers.&nbsp;<\/p>\n\n\n\n<p>According to the Customer Data Platform Institute, the CDP industry revenue for 2019 was expected to exceed $1 billion.&nbsp;<\/p>\n\n\n\n<p>For a long time, publishers relied on <a target=\"_blank\" href=\"https:\/\/www.adpushup.com\/blog\/data-management-platform\/\" rel=\"noopener\">data management platforms<\/a> (DMP) for collecting information about their customers. The <a target=\"_blank\" href=\"https:\/\/www.adpushup.com\/blog\/the-best-data-management-platform\/\" rel=\"noopener\">best data management platforms<\/a> have been highly reliant on third-party data for providing consumer insights. But with the impending demise of third-party cookies, DMPs may eventually turn completely obsolete.&nbsp;<\/p>\n\n\n\n<p>This development has opened up opportunities for the CDPs to be used more actively. CDPs solely make use of <a target=\"_blank\" href=\"https:\/\/www.adpushup.com\/blog\/how-first-party-data-will-drive-user-engagement-and-revenue-in-a-post-cookie-world\/\" rel=\"noopener\">first-party data<\/a>, the basis of which they create unique consumer profiles offering actionable insights.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>\u201cThe CDP can help publishers expand revenue opportunities by using data externally to extend targeting and measurement \u2013 truly partnering with brands as segment factories.\u201d<\/p><cite> Ameet Shah for <a href=\"https:\/\/www.adexchanger.com\/the-sell-sider\/for-publishers-the-cdp-forges-a-new-path-for-opportunity\/\">the AdExchanger<\/a> <\/cite><\/blockquote>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.adpushup.com\/blog\/what-is-a-customer-data-platform-should-publishers-invest-in-it\/#What_Is_A_Customer_Data_Platform\" >What Is A Customer Data Platform?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.adpushup.com\/blog\/what-is-a-customer-data-platform-should-publishers-invest-in-it\/#Why_Should_Publishers_Invest_In_A_CDP\" >Why Should Publishers Invest In A CDP?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.adpushup.com\/blog\/what-is-a-customer-data-platform-should-publishers-invest-in-it\/#CDP_vs_DMP_Essential_Differences\" >CDP vs DMP: Essential Differences<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.adpushup.com\/blog\/what-is-a-customer-data-platform-should-publishers-invest-in-it\/#The_Way_From_Here\" >The Way From Here&nbsp;<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.adpushup.com\/blog\/what-is-a-customer-data-platform-should-publishers-invest-in-it\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2 id=\"h-what-is-a-customer-data-platform\"><span class=\"ez-toc-section\" id=\"What_Is_A_Customer_Data_Platform\"><\/span><strong>What Is A Customer Data Platform?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1465\" height=\"887\" src=\"https:\/\/i2.wp.com\/www.adpushup.com\/blog\/wp-content\/uploads\/2020\/03\/CDP.png?fit=770%2C466&amp;ssl=1\" alt=\"How a customer data platform collects data\" class=\"wp-image-14802\" srcset=\"https:\/\/www.adpushup.com\/blog\/wp-content\/uploads\/2020\/03\/CDP.png 1465w, https:\/\/www.adpushup.com\/blog\/wp-content\/uploads\/2020\/03\/CDP-300x182.png 300w, https:\/\/www.adpushup.com\/blog\/wp-content\/uploads\/2020\/03\/CDP-1024x620.png 1024w, https:\/\/www.adpushup.com\/blog\/wp-content\/uploads\/2020\/03\/CDP-768x465.png 768w, https:\/\/www.adpushup.com\/blog\/wp-content\/uploads\/2020\/03\/CDP-150x91.png 150w\" sizes=\"(max-width: 1465px) 100vw, 1465px\" \/><figcaption>Source: <a href=\"https:\/\/exponea.com\/blog\/customer-data-platform\/\">Exponea<\/a><\/figcaption><\/figure>\n\n\n\n<p>To properly understand what a CDP is, let\u2019s imagine that you are a consumer looking for a pair of sunglasses.&nbsp;<\/p>\n\n\n\n<p>An ordinary online search for sunglasses will include searching on an e-commerce website, further leading to a brand\u2019s website, through paid-ads on social media, through recommendations on blogs, etc.&nbsp;<\/p>\n\n\n\n<p>Any normal product search online looks the same way and does not follow a linear path. Consumers often visit a publisher\u2019s website through multiple sources before making a purchase.<\/p>\n\n\n\n<p>In other words, these are <em>touchpoints<\/em> that a consumer comes in contact with which brands could not keep track of before. But with CDPs, these touchpoints are used to provide a cohesive and unified profile giving actionable insights into your consumer.&nbsp;<\/p>\n\n\n\n<p>Customer data platforms collect data from a variety of sources including email forms, <a href=\"https:\/\/www.callbell.eu\">CRM,<\/a> data management platforms, etc. This data is then analyzed to form individual customer profiles, something exclusively offered by only this technology.<\/p>\n\n\n\n<p>CDPs have ordinarily served as an important tool for a marketer but their importance for publishers is increasing now more than ever.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-why-should-publishers-invest-in-a-cdp\"><span class=\"ez-toc-section\" id=\"Why_Should_Publishers_Invest_In_A_CDP\"><\/span><strong>Why Should Publishers Invest In A CDP?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-how-to wp-block-yoast-how-to-block\"><p class=\"schema-how-to-description\">Customer data platforms have made a compelling case for themselves for publishers, thanks to <a target=\"_blank\" href=\"https:\/\/www.adpushup.com\/blog\/iabs-project-rearc-a-possible-solution-to-third-party-cookie-apocalypse\/\" rel=\"noreferrer noopener\">third-party cookie apocalypse<\/a>. With data obtained from third-party sources rendered invalid from 2020, the publishing industry is looking at solutions to fill the <a target=\"_blank\" href=\"https:\/\/www.adpushup.com\/blog\/programmatic-advertising\/\" rel=\"noreferrer noopener\">programmatic<\/a> void.\u00a0<br\/>CDPs are pivotal to increasing publisher revenue for the following reasons:<\/p> <ol class=\"schema-how-to-steps\"><li class=\"schema-how-to-step\" id=\"how-to-step-1665577375327\"><strong class=\"schema-how-to-step-name\"><strong>They rely on first-party data<\/strong>:<\/strong> <p class=\"schema-how-to-step-text\">As mentioned above, the use case for CDPs is standing out because of their reliance on first-party information. CDPs primarily make use of data such as email IDs, phone numbers, addresses, etc.\u00a0<\/p> <\/li><li class=\"schema-how-to-step\" id=\"how-to-step-1665577418547\"><strong class=\"schema-how-to-step-name\"><strong>They are privacy-compliant<\/strong>:<\/strong> <p class=\"schema-how-to-step-text\">User privacy has become a primary source of concern in the ad tech industry. With publishers still reeling from the impact of the <a target=\"_blank\" href=\"https:\/\/www.adpushup.com\/blog\/a-gdpr-checklist-for-those-who-are-tired-of-gdpr-checklists\/\" rel=\"noreferrer noopener\">GDPR<\/a>, the <a target=\"_blank\" href=\"https:\/\/www.adpushup.com\/blog\/a-ccpa-compliance-checklist-for-publishers\/\" rel=\"noreferrer noopener\">CCPA<\/a>, and now the approaching <a target=\"_blank\" href=\"https:\/\/www.adpushup.com\/blog\/an-introduction-to-lgpd-brazils-general-data-protection-framework\/\" rel=\"noreferrer noopener\">LGPD<\/a>, a need for a privacy-compliant platform for storing and analyzing consumer data has arisen. CDPs offer publishers the opportunity to use consumer data in a manner that protects consumers\u2019 privacy.<\/p> <\/li><li class=\"schema-how-to-step\" id=\"how-to-step-1665577440975\"><strong class=\"schema-how-to-step-name\"><strong>They assemble data in one place:<\/strong><\/strong> <p class=\"schema-how-to-step-text\">Unlike the way DMPs store data (usually, under an anonymous cookie ID), CDPs provide extensive details about a consumer collected from several sources. All these details (usually first-party data) are mapped to a single ID that can be scanned to find valuable insights about the consumer.<\/p> <\/li><li class=\"schema-how-to-step\" id=\"how-to-step-1665577463927\"><strong class=\"schema-how-to-step-name\"><strong>They improve consumer experience<\/strong>:<\/strong> <p class=\"schema-how-to-step-text\">Several times, even after making a purchase, a consumer is still seeing the ads for the same product. This can be quite intrusive and deteriorate consumer experience. CDPs help in eliminating that by tracing the entire journey of a consumer\u2019s online browsing and mapping that under a single ID. This helps in enriching the consumer experience, simultaneously improving the trust in your website.<\/p> <\/li><li class=\"schema-how-to-step\" id=\"how-to-step-1665577628369\"><strong class=\"schema-how-to-step-name\"><strong>They provide real-time information:<\/strong><\/strong> <p class=\"schema-how-to-step-text\">After gaining popularity, customer data platforms have now evolved to provide real-time information. Customer profiles are constantly refreshed in a CDP, thus providing the most recent browsing information about them. This helps publishers in delivering exactly what their website users might be looking for.\u00a0<\/p> <\/li><\/ol><\/div>\n\n\n\n<h2 id=\"h-cdp-vs-dmp-essential-differences\"><span class=\"ez-toc-section\" id=\"CDP_vs_DMP_Essential_Differences\"><\/span><strong>CDP vs DMP: Essential Differences<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In case you\u2019re trying to choose between a DMP and a CDP, here\u2019s a table for making a more informed decision:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Subject<\/strong><\/td><td><strong>CDP<\/strong><\/td><td><strong>DMP<\/strong><\/td><\/tr><tr><td><strong>Type Of Data<\/strong><\/td><td>Typically collects first-party data.<\/td><td>Mostly collects third-party data.<\/td><\/tr><tr><td><strong>Source Of Data Obtained<\/strong><\/td><td>Normally obtains data from CRM, newsletter subscriptions, website analytics tools, etc.<\/td><td>Obtains data from cookies, APIs, etc.<\/td><\/tr><tr><td><strong>Customer Profiling<\/strong><\/td><td>Can store Personally Identifiable Information (PII). Creates unique customer profiles while helping in differentiating between consumers.<\/td><td>Cannot store PII. Works with data that is anonymous and stored as an aggregate.&nbsp;<\/td><\/tr><tr><td><strong>Use Case<\/strong><\/td><td>Can be used for all marketing activities including building a new brand, relationships with customers, customized newsletters, etc.<\/td><td>Can only be used for advertising activities such as improving targeted advertising.<\/td><\/tr><tr><td><strong>Data Retention<\/strong><\/td><td>Stores information for a long time, while constantly updating it through real-time refreshing.<\/td><td>Uses cookies as primary data, hence, can only store data for a short span (maximum 90 days)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-the-way-from-here\"><span class=\"ez-toc-section\" id=\"The_Way_From_Here\"><\/span><strong>The Way From Here&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The ad-tech space currently is brimming with developments revolving around user privacy. Publishers are under pressure to either migrate or develop solutions that protect user identity while not compromising on programmatic revenue. CDPs appear as a right fit for publishers at the moment as they partially solve their third-party cookie apocalypse crisis. In the end, developing trust-based relationships with consumers seems to be of primary importance. And CDPs might just be the solution for that.<\/p>\n\n\n\n<h2 id=\"h-faqs\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1665573432224\"><strong class=\"schema-faq-question\">1. What is the purpose of a customer data platform?<\/strong> <p class=\"schema-faq-answer\">Customer data platforms connect data from multiple tools and sources into a centralized data hub for a unified customer view. All relevant parties in your organization can access the first-party data gathered from these sources in a data warehouse.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1665573650731\"><strong class=\"schema-faq-question\">2. What are the benefits of a customer data platform?<\/strong> <p class=\"schema-faq-answer\">Each tool in modern businesses contains its own fragment of valuable customer data. As a result, certain teams only have access to certain tools and datasets, while no one has full visibility into your customer data. CDPs offer a unified view of the customer by combining and consolidating all this data. You can access all customer interactions and touchpoints here.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1665574017616\"><strong class=\"schema-faq-question\">3. What are the examples of customer data platforms?<\/strong> <p class=\"schema-faq-answer\">A customer data platform (CDP) is a software system that pulls together data from a wide array of sources \u2014 such as\u00a0websites, ecommerce and ad platforms, social media applications, retail software, and more \u2014 to create a centralized customer database, as well as detailed profiles of each customer.<\/p> <\/div> <\/div>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"<p>Customer data platforms (CDP) are a relatively new technology in the ad tech industry. They will now play an important role in helping publishers gain more insights about their consumers.&nbsp; According to the Customer Data Platform Institute, the CDP industry revenue for 2019 was expected to exceed $1 billion.&nbsp; For a long time, publishers relied<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":18,"featured_media":14803,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","om_disable_all_campaigns":false,"inline_featured_image":false,"apple_news_api_created_at":"","apple_news_api_id":"","apple_news_api_modified_at":"","apple_news_api_revision":"","apple_news_api_share_url":"","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"middle","apple_news_slug":"","apple_news_sections":"[]"},"categories":[6440,6462],"tags":[6422],"apple_news_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.5 (Yoast SEO v18.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is A Customer Data Platform - Should Publishers Invest In It?<\/title>\n<meta name=\"description\" content=\"Customer data platforms are emerging as a possible solution to handling third-party cookie apocalypse for their reliance on first-party data.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.adpushup.com\/blog\/what-is-a-customer-data-platform-should-publishers-invest-in-it\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"What Is A Customer Data Platform - Should Publishers Invest In It?\" \/>\n<meta name=\"twitter:description\" content=\"Customer data platforms are emerging as a possible solution to handling third-party cookie apocalypse for their reliance on first-party data.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.adpushup.com\/blog\/wp-content\/uploads\/2020\/03\/Customer-data-platform-feature-image.jpg\" \/>\n<meta name=\"twitter:creator\" content=\"@adpushup\" \/>\n<meta name=\"twitter:site\" content=\"@adpushup\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shubham Grover\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.adpushup.com\/blog\/#organization\",\"name\":\"AdPushup\",\"url\":\"https:\/\/www.adpushup.com\/blog\/\",\"sameAs\":[\"https:\/\/www.linkedin.com\/company\/adpushup\/\",\"https:\/\/www.facebook.com\/AdPushup\/\",\"https:\/\/twitter.com\/adpushup\"],\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.adpushup.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.adpushup.com\/blog\/wp-content\/uploads\/2019\/02\/AdPushup-logo.png\",\"contentUrl\":\"https:\/\/www.adpushup.com\/blog\/wp-content\/uploads\/2019\/02\/AdPushup-logo.png\",\"width\":3294,\"height\":893,\"caption\":\"AdPushup\"},\"image\":{\"@id\":\"https:\/\/www.adpushup.com\/blog\/#\/schema\/logo\/image\/\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.adpushup.com\/blog\/#website\",\"url\":\"https:\/\/www.adpushup.com\/blog\/\",\"name\":\"AdPushup Blog\",\"description\":\"A\/B Testing, Monetization &amp; 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