Why CDP's are all the Hype

Here's another acronym to add to your marketing bible.

CDPs or "Customer Data Platforms's focus on 1st-party data and known identities and an ability to connect with common marketing systems for input and output. It facilitates data collection, unification around a persistent ID, flexible storage and easy access from outside. Caution: solving cross-device requires something that CDPs do not have (yet)."

A CDP could be visualised like this as suggested by Martin Kihn:



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Gartner's, Martin Kihn's observations:
1. CDP is not a system of record – it's a system of innovation
2. Failures won't be caused by the tech – they'll be caused by you
3. You probably don't know how messy your data is now
4. You will overestimate your team’s technical skill
5. You want short-term results but use long-term evaluation metrics

The temptation will be to think the CDP replaces the DMP (Data Management Platform), but "The DMP negotiates...programmatic advertising, while the CDP – by definition – is grounded in individuals known by name, email, customer number or another personal ID." The DMP operates on massive audiences; the CDP, on a manageable number of individuals. They do different things but are complementary.

Here's a great summary from Martin Kihn in AdExchanger

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