What Is Dynamic Creative Optimization?

Dynamic Creative Optimization (DCO) is an advertising technique that creates different iterations of an ad in real time, personalizing the advertisement to each viewer. The purpose of DCO is to create individually tailored display ads, therefore increasing conversion rates. 

Dynamic creative vs. dynamic creative optimization

Dynamic creative advertising uses various components of headlines, videos, and backgrounds to create an ad based on an individual user. DCO is a technology that uses a predictive engine to optimize the ad experience for a user based on campaign performance, historical data, and real-time data.

Examples of dynamic creative optimization

DCO can be used for ad campaigns that change based on the user’s geographic location and interests. Examples of DCO are:

Dynamic feed-based campaigns – Although feed-based ads are heavily focused on e-commerce stores, they can be used in other fields such as the travel industry. Using data from a spreadsheet, viewers are shown customized products and offers. DCO offers a more personalized ad experience than other alternatives. 

Geo-targeting data – Geo-targeting creates ad content by implementing pictures and videos specific to user location. Geo-targeting data can be localized for each individual user with the intent of drawing them to a specific store or event. 

Demographic prospecting – Planning and producing an ad for a specific demographic is made easier by customizing ad features based upon what appeals to that demographic.

Location and weather data – Location and weather data are used to make a specific ad contextually relevant and will result in more conversions compared to generic ads. 

Setting up a dynamic creative optimization campaign

To have a successful DCO campaign, it is essential to have a strong foundation of accurate and relevant data in addition to a deep understanding of the customer’s online habits. 

Create buyer personas – Creating a detailed buyer persona for each demographic is done by looking at online habits and other factors such as shopping preferences, life changes, career and life goals, and personal background. It is important to understand who the ad should be geared towards. 

Identify where buyers spend time online –  Find out where customers do their research before making a purchase and if they visit other online forums. This information is found on the website analytics for top referring domains. It is also beneficial to pinpoint which devices the consumer uses to browse. The ultimate goal is to discover the best place to display an ad and in what format. 

Outline geographic targeting – The next step to create a DCO campaign is deciding which regions will be used for the campaign. Companies can maximize ad spending by serving ads that reflect what is happening at specific geographic locations or at a specific time of day. This also divides the audience into the profitable and non-profitable groups, using the particular buyer persona for the ad campaign.

Confirm messaging for each stage in the buyer journey – Create a message for each step of the buyer’s journey. The message needs to be clear, concise, and engaging in order to entice the customer to learn more and make a purchase.

Connect to your data management platform (DMP) – With the information in hand and messages planned out, it is time to connect the DCO platform to the DMP and any other relevant data source.

Create a decision matrix – Now that the DCO platform is connected to the data sources, create a decision matrix to configure ad presentation based on the buyer’s journey. To solidify the message and ensure the goals make sense at each stage of the buyer’s journey, it is beneficial to map out the decision matrix before going through the steps to launch the campaign.

Combine creatives with actions – The last step is to match each action outlined in the decision matrix with relevant creatives. This makes it possible to define the rules that shape the audiences’ experience.