True or False: A data management platform (DMP) can transform first-party data into prospecting data.

A data management platform (DMP) indeed has the capability to transform first-party data into prospecting data, which makes the statement true. First-party data is collected directly from a company's own audience, providing insights into existing customers and their behaviors. A DMP can analyze this data to create audience segments and profiles, which can then be used to reach new potential customers that share similar characteristics or behaviors—this is the essence of prospecting.

The transformation process may involve enhancing the first-party data with additional insights or attributes, thereby allowing advertisers to effectively target lookalike audiences. By leveraging algorithms and data analytics, a DMP can identify and expand the reach of advertising efforts beyond just existing users to include prospective customers who fit the desired profile.

In the context of the other options, the statement does not depend on third-party data; while third-party data can augment the capabilities of a DMP, it is not a requirement for transforming first-party data into prospecting data. Therefore, the straightforward nature of the statement supports the conclusion that a DMP can indeed use first-party data for prospecting purposes.