PIM and DAM Quickly Explained - Differences and Similarities

1. What is Digital Asset Management (DAM)?
2. What is Product Information Management (PIM)?
3. What are PIM & DAM used for?
4. When is a DAM system worthwhile?
5. When is a PIM system worthwhile?
6. What should be considered when choosing a DAM system?
7. What should be considered when choosing a PIM system?
8. Which tools are suitable for a DAM?
9. Which tools are suitable for a PIM?

As soon as you look for solutions to efficiently store, organize and manage digital content, you end up with the topics of Digital Asset Management (DAM) and Product Information Management (PIM) - often in combination. In this article, we will give you an overview of PIM and DAM, their functions, differences and possible applications. You will also find out what you should pay attention to when choosing the right system and which tools are suitable for PIM and DAM respectively.

What is Digital Asset Management (DAM)?

DAM refers to both the software and the business process itself that helps companies manage their digital assets such as images, videos, audio files and documents centrally, organize, manage and publish. DAM software enables shared and regulated access to a digital content collection and is offered on-premises or as SaaS. The main functions of DAM are file organization, metadata management, versioning and release processes. With the right DAM strategy companies and organizations can increase their productivity, more easily comply with brand guidelines and create consistent brand experiences. There are different categories of DAM software, so they can be used in different industries, including marketing, e-commerce and publishing.

What is Product Information Management (PIM)?

A PIM system serves as a central database for storing and maintaining product information provided to various stakeholders. This can be an internal marketing department, but also an online store that lists the products. The goal of a PIM system is to create a central location for product-related information, often referred to as a 'single source of truth' (SSOT). A PIM system enables companies to manage product information efficiently, improve data quality and personalize the customer experience. In a PIM basic data such as product name, dimensions, variants and colors are stored. The main functions of PIM are product catalog management, product data maintenance, data validation and translation management.

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What are PIM & DAM used for?

PIM stores product information, DAM digital files. Both serve to optimize data management, improve workflow efficiency, facilitate collaboration and enable easy access to data. PIM and DAM can be combined well. DAM supports a company's content processes through the central management of all digital files. This includes product images and promotional videos for the respective products in the PIM. PIM is particularly helpful in collaboration with external dealers in the case of extensive product portfolios.

PIM and DAM - Similarities and Differences

What are the primary goals of a PIM system?

• Using a PIM system as a SSOT enables centralized management of product information, automated updates and shortens the time-to-market.
• Centralized management of product data for various channels to provide consistent product information and improve customer communication.
• Translation management and localization functions that support internationally active companies in adapting product information to local markets and languages.

What are the primary goals of a DAM system?

• The central organization and management of digital assets guarantee high-quality and up-to-date content in different formats.
• Efficiency and cost savings by eliminating data silos, powerful search functions and collaborative workflows.
• Easy and fast access to digital content from any internet-enabled device using SaaS.
• Up-to-date content for all users.
• Secure storage of important data through central storage compared to storage on external hard drives, personal desktops or in folders.
• Secure file sharing for internal and external stakeholders.

When is a DAM system worthwhile?

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• Many pictures, videos or documents need to be managed.
• There are high requirements for the quality and diversity of assets, e.g. different formats.
• Automation and integration into other processes are important, e.g. automatic enrichment of metadata or fast distribution of assets.
• Assets need to be used in different applications, e.g. PowerPoint, InDesign, Photoshop or WordPress.
• Teamwork and shared use of assets are required, e.g. internal and external sharing of files.
• A uniform branding must be guaranteed.

In this article on Digital Asset Management in Marketing you can read more about what a DAM really brings and when it is worthwhile.

When is a PIM system worthwhile?

A PIM system like can be worthwhile if:

• Many different products with a constantly changing range need to be managed.
• Data is generated from different sources such as online shops and supplier quality management.
• Several sales and marketing channels, such as marketplaces, mobile applications, social media, online catalogs, print media, etc. are used.
• Products need to get to market very quickly (Time-to-Market).
• Customers need comprehensive product information for (online) shopping.
• Different departments in the company, such as marketing, sales and purchasing need current and detailed product information.

In this article you can read which Advantages PIM systems have.

What should be considered when choosing a DAM system?

1. Needs analysis: Analyze your requirements for a DAM system. Consider what types of digital assets should be managed. Also consider your current and future requirements regarding user access, user roles and metadata management.
2. Functionalities and features: Compare the functionalities and features of various DAM systems. Pay attention to aspects such as ease of use, file management, metadata management, search and navigation, user access and rights management, workflow support, versioning and collaboration functions.
3. Integration capability: Check how well the DAM system can be integrated into other systems you already have, such as content management systems (CMS), PIM, e-commerce platforms or marketing automation tools. Seamless integration improves the efficiency and productivity of workflows.
4. Scalability and flexibility: Pay attention to the scalability and flexibility of the DAM system to ensure it can keep pace with the growing demands of the company. Be sure to see if the system is cloud-based or hosted on-premises, and whether it offers scalable storage and user licenses.
5. Costs and Support: Compare the costs of various DAM systems, including license fees, implementation costs, maintenance and support costs. Also consider the support of the DAM system provider, such as technical support, training, updates and future developments.

What should be considered when choosing a PIM system?

The steps to selecting a PIM system and a DAM system are almost identical, as both systems are used to manage digital content. However, they differ in detail.

1. Requirement analysis: Analyze your requirements for the PIM system. Consider what kind of product information should be managed. Also consider your current and future requirements for product catalogs, product classifications and multilingualism.
2. Functionalities and features: Compare the functions and features of various PIM systems. Pay attention to topics such as collection and management of product information, product data quality, product data cleaning, product data validation, product data distribution, multilingualism and support for different sales channels such as e-commerce platforms, marketplaces, print media and mobile applications.
3. Integration capability: Check to what extent the PIM system can be integrated into other systems that are already in use in your company. These include e.g. e-commerce platforms, CMS, Customer Relationship Management (CRM) or ERP systems.
4. Scalability and flexibility: As with DAM, you should check the hosting and scalability of the storage and user licenses. Here too, it is necessary to think ahead and consider which future requirements and changes might be pending, which the system must support.
5. Costs and support: Finally, compare the costs of the different PIM systems, including license fees, implementation costs, maintenance and support costs. Consider what support you need and whether the PIM system can offer this.

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Which tools are suitable for a DAM?

More DAM tools can be found in the category Digital Asset Management (DAM) Software & Tools. For deeper tool insights, we recommend the article "The 8 best Digital Asset Management tools".

Which tools are suitable for a PIM?

More PIM tools can be found in the category Product Information Management (PIM) Software & Tools. For deeper tool insights, we recommend the article "PIM systems: The 7 best providers for Product Information Management".