DMP 2.0 Introduction of the DXP

What is a DMP?

Almost everyone in the data and internet advertising world hears the term DMP or Data Management Platform regularly, and most likely even understands what it is and knows some of the main players.

For those who don’t know, a DMP is basically a company that offers a Data Warehouse of sorts to store your 1st party data (your internal data about your customers and transactions) and merge that with data from many other sources (3rd Party Data) to build audiences for targeting banner ads online. It also does a few other things like provide analytic capabilities and connections to Ad Tech partners.

So, the DMP basically is a place to merge 1st party and 3rd party data together to learn more about your customers, as well as reach customers you don’t even have today.   DMP companies have been around for many years and they are basically the data side that fuels online Ad Targeting today.

The Quality Issue, Time for DMP 2.0

So, why do we need something better than the DMP? It has served a useful purpose and provided a lot of value for companies to get at the data they need and drive targeted online campaigns. That being said, the DMP space has some significant holes and the technology offerings from the various vendors all basically do the same thing and perpetuate the same flaws.

The DMP was a good first step, but unfortunately it never sufficiently evolved – until now.

Now let’s look at the flaws with the DMP model and what companies offer today. There are a few flaws that are quite significant and then a few that are more minor in nature. Let’s focus though on the big issues.

The key issue with all DMP providers is that the business model is not designed with the quality of the data in mind. Which obviously sounds crazy, but is true. In fact, the DMP model is based on the idea that data is relatively cheap and inaccurate, so don’t worry about the quality.

If quality was a key consideration, data would be impartially scored based on performance and companies could make decisions based on that scoring.

Sure today’s DMPs will tell you that they make sure that data is checked before it is loaded, and they even have analytics tools to after the fact determine whether your campaign was successful. But, they don’t do anything to tell you which data is working and which is not. They don’t tie campaign success or failure to the data that was used.

The question is, why not?

The answer is simple: because they are the ones selling you the data. It is their data. They are not impartial and obviously they have a vested interest in selling you the data they have. It is not evil or malicious, it is just their business model and the way the data industry works. In this model there is certainly no desire to tie performance of data to the price of that data.

In the DMP model they own the data and their goal is to sell you very specific data at the best price for them. No market dynamics are in place.

Enter the DXP, the Evolution of the DMP

The DXP or Data Exchange Platform is the next evolution of the DMP, but operates as a pure Marketplace, with all of the benefits a marketplace provides. The DXP offers all of the robust functionality of the DMP, but is designed to address the inherent shortcomings of the DMP business model: Quality, Transparency, Price Sensitivity, Flexibility and Timeliness.

In the DXP marketplace as data is bought and sold, quality scores are impartially assigned based on the success of the campaigns they are utilized in. Automated feedback from clicks and purchases drive scoring and then are utilized by buyers and sellers to drive future purchases. Additionally, in the DXP model quality becomes inherently tied to price, since all parties can view quality and performance results and adjust prices to meet targeted ROI expectations.

Transparency and an open exchange for buyers and sellers is the name of the game and robust tools are utilized to provide all partners the maximum value.

Through the DXP your 1st party data can be linked to limitless 3rd party providers, with all of the benefits of the traditional DMP, but with a core focus on quality and market-driven pricing. Impartial scoring based on real data and feedback.

True market dynamics and dynamic quality scoring for the first time in the data industry.

DXP versus the DMP

The DMP has served the Ad Tech space well over the last few years, but as the needs of companies and their thirst for better data evolves, so must the DMP.

Follow this series of articles on BDEX as we continue to expand and provide more details on the DXP and the evolution of the DMP, or to learn more go to and subscribe to our blog and newsletter.

BDEX is the first-ever Data Exchange Platform (DXP). BDEX is a market driven exchange platform combining all of the functionality, data and reach of a traditional DMP in a true marketplace environment. The BDEX DXP and DAAS platform enables companies to acquire impartially quality scored 3rd party data to target their audience like never before.

Please visit to learn more and get started!