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The ads we see today are no longer the same as those our parents used to see. Machine learning and artificial intelligence have changed the way we advertise. Ads have evolved from generic and static images to personalized, dynamic content that speaks directly to the audience. Augmented by data and algorithms, ads are now more relevant, engaging, and effective.
One such innovation that has revolutionized the industry is Dynamic Creative Optimization (DCO). In this guide, we will explore the concept of DCO, its importance for creative teams, and how to set up a successful DCO campaign.
Like Programmatic Direct, dynamic creative optimization uses technology to automate and personalize ad content in real-time. In simpler terms, DCO allows advertisers to create and deliver personalized ads using data and technology to determine the best combination of ad elements for each viewer.
For example, if a user is browsing for shoes online, DCO can dynamically generate an ad featuring the same pair of shoes they were looking at, along with relevant messaging and offers. This level of personalization increases the chances of conversion and provides a better user experience.
For creative teams, creating ads is no longer limited to designing a few static images. Instead of creating multiple variations of an ad manually, DCO automates this process by generating ads in real time based on the preferences and behavior of each viewer.
The multiple versatilities of DCO allow creative teams to focus on ideation and strategy rather than manual execution. This leads to better ad performance, increased efficiency, and more time to refine and perfect creative concepts.
Do not confuse dynamic creative optimization with dynamic creatives. While both use technology to automate and personalize ad content, they serve different purposes.
Dynamic creatives refer to ads with multiple variations of a single element or message. For example, a retail brand may use dynamic creatives to showcase different products in their ad.
On the other hand, DCO goes beyond just changing a single element. It considers different combinations of ad elements, such as images, text, and call-to-actions, to create a personalized ad for each viewer in real-time.
Simply put, dynamic creatives are like puzzle pieces that can be fitted together to create different variations of an ad, while DCO is the technology and strategy that puts those puzzle pieces together in a personalized way.
The multiple versatilities of DCO allow creative teams to focus on ideation and strategy rather than manual execution. This leads to better ad performance, increased efficiency, and more time to refine and perfect creative concepts.
A successful DCO campaign has two core components: dynamic components and static components.
Dynamic components refer to an ad’s varied elements, such as images, text, and call-to-actions. These elements are fed into a decision engine that selects the best combination for each viewer. Data and algorithms control dynamic components and allow real-time personalization and optimization.
For example, if an electronics brand runs a DCO campaign for their latest smartphone. The phone picture, spec sheet, and promotional message can all be dynamic components based on the viewer’s interests and past interactions with the brand.
Static components remain constant throughout the campaign, including branding elements like logos and brand messaging. Complex coding ensures these elements stay consistent across all ad variations.
For example, if an electronics brand runs a DCO campaign for their latest smartphone. The phone picture, spec sheet, and promotional message can all be dynamic components based on the viewer’s interests and past interactions with the brand.
Setting up a successful DCO campaign requires careful planning and execution. Each touchpoint of the campaign must be optimized and aligned with the overall strategy. Here are the key steps to setting up a DCO campaign:
For example, if an electronics brand runs a DCO campaign for their latest smartphone. The phone picture, spec sheet, and promotional message can all be dynamic components based on the viewer’s interests and past interactions with the brand.
The first step of setting up a DCO campaign is to clearly define your campaign’s scope and goals. Who do you want to target? Which channels will you use? What are your KPIs?
Answering these questions will help determine your personalization, messaging, and ad placement strategies. The team responsible for the campaign should have a clear understanding of these scopes and strategies before moving on to the next step.
As DCO relies heavily on personalization, deeply understanding your target audience is a priority. Creating buyer personas or detailed profiles of your ideal customer can help guide the personalization process. If you don’t have existing buyer personas, you can use data and insights from your past campaigns to create these profiles.
Here are some questions to consider when creating buyer personas:
For B2B brands, it may also be helpful to consider your target audience’s company size, industry, and job roles. With these personas in hand, creative teams can better understand the preferences and needs of their target audience and tailor ad content accordingly.
The first step of setting up a DCO campaign is to clearly define your campaign’s scope and goals. Who do you want to target? Which channels will you use? What are your KPIs?
Answering these questions will help determine your personalization, messaging, and ad placement strategies. The team responsible for the campaign should have a clear understanding of these scopes and strategies before moving on to the next step.
The key technology used in DCO is the ad server, which makes real-time decisions on which combination of ad elements to serve each viewer. This requires a sophisticated algorithm and access to relevant data points such as user behavior, demographics, and location. A DCO campaign may also involve dynamic tags, allowing for further personalization by pulling real-time data such as weather or stock prices.
Like any marketing campaign, you must regularly monitor and optimize your DCO campaign. This involves analyzing data from the ad server, tracking performance against KPIs, and making necessary adjustments to improve results.
A dedicated team should monitor the campaign and make optimizations as needed, such as updating ad elements, adjusting audience targeting, or testing different variations of dynamic creative units. With these core components and steps in place, a DCO campaign can deliver real-time personalized, relevant, and optimized ads to each viewer.
DCO has been widely adopted by various industries, and here are some real-life examples of how this technology has been utilized in different sectors:
In the automobile industry, DCO creates personalized ads for specific car models based on a user’s location, interests, and behavior. For example, if a person living in an urban area frequently searches for compact cars.
The DCO campaign can serve them with ads featuring images of compact cars in city settings. On the other hand, if a person living in a rural area shows interest in SUVs, they may see ads featuring images of off-road adventures.
BMW used DCO in their campaign for the new M135i model in Europe. By utilizing SeenThis’ streaming technology, they were able to use engaging, high-quality videos instead of static banners. As a result, they saw higher viewability, CTR, and more cost-efficient eCPM and CPC rates.
Retail brands are now more concerned about reaching the right audience with personalized messaging to improve conversion rates. As end consumers demand unique experiences, DCO can help retailers show ads featuring products and promotions that align with a person’s interests and shopping behavior.
For example, if a female has previously shown interest in fashion accessories on a retail website, they may see DCO ads featuring those products. Additionally, the ad may display relevant promotions or discounts if a person falls within a certain age group or income bracket.
The main goal of DCO in the retail industry is to increase conversions and sales by delivering personalized ads that cater to a user’s specific interests and needs.
The travel industry has also jumped on board with DCO, utilizing the technology to deliver relevant and personalized ads to potential travelers. A person previously searching for flights to tropical destinations may see DCO ads featuring deals and promotions for beach vacations. Or, if someone shows interest in adventure activities, they may see ads featuring tours and experiences in exotic locations.
The travel industry also utilizes DCO to show real-time pricing and availability, allowing users to book directly from the ad. This can lead to a more seamless and efficient booking process, increasing the likelihood of conversions.
The health industry is another sector that has seen success with DCO campaigns. With diseases and health concerns varying from person to person, DCO can help deliver personalized ads based on a user’s age, gender, location, and interests.
For example, a woman in her 40s who has previously searched for information on menopause may see DCO ads featuring a specific brand’s hormone therapy options. On the other hand, a male in his 20s may see ads for gym memberships and nutritional supplements.
DCO can also be used to promote health events and services based on a person’s location. For instance, someone in a major city may see ads for a local health fair or wellness workshop, while someone in a rural area may see ads for telemedicine options.
Dynamic Creative Optimization is a powerful tool that allows brands to deliver personalized and relevant ads in real time. Creative management platforms (CMPs), data management platforms (DMPs), and demand-side platforms (DSPs) work together to make this technology possible.
By implementing DCO, brands can improve their ad performance and increase conversions by providing a tailored experience for each viewer. So, any industry looking to reach highly targeted and engaged audiences should consider incorporating DCO into their marketing strategies.
