Dynamic creative optimization (DCO): What it is & why it is so powerful for creative teams

DCO man
  1. Dynamic creative optimization: what is it?
  2. How does it work?
  3. A campaign’s use of dynamic creative.
  4. How Do DCO and Creative Management Platforms (CMPs) Interact?

Advertising technology is developing quickly, giving advertisers new chances to target their audience with highly relevant, individualized content that is more likely to convert. An important example that contributes to the discovery of important insights and the effectiveness of campaigns is dynamic creative optimization (DCO).

Dynamic creative optimization will be defined, and its operation will be described in this article. The advantages of dynamic advertising will then be discussed, along with several case studies that demonstrate how dynamic creative can be used to boost conversions.

Dynamic creative optimization: what is it?

Based on data about a particular viewer, dynamic creative optimization tailors adverts for that viewer. For instance, based on a user’s past surfing history or the items they have put in their shopping cart, the advertisement may display various creative items to different users.

Because they are targeted and relevant, dynamic ads frequently perform better than more conventional static ads, which look the same no matter who is watching them.

The significance of dynamic creative optimization (DCO)

Every day, thousands of advertisements are seen by consumers. Because of this, it is crucial for brands to actively engage their audience through messaging and creativity. DCO, or dynamic creative optimization, enables these same advertisers to give these users more pertinent and effective ad experiences.

DCO can also aid in increasing the scope and effectiveness of advertising. DCO handles this automatically for them, so they don’t have to make numerous versions of an advertisement to run in various locations.

How does it work?

Dynamic Creative Optimization serves out customized ad material based on real-time data using machine learning technologies.

DCO ad servers normally get input from two main sources: your creative management platform (CMP), which controls creative aspects like ad copy and visual assets, and your data management platform (DMP), which handles the data feeds.

The data that DCO ads collect is controlled by a centralized DMP and includes browsing history, purchasing patterns, devices, weather, location, IP address, CRM information, and more.

As a result of the DMP’s integration with the DCO ad server, which receives real-time data from all of your connected sources, the server is able to create ads automatically using the data it has access.

Additionally integrated with your CMP, the DCO ad platform may retrieve different visual components and copy them into the server to create the ad.

There are two basic steps in the optimization process.

In order to determine how many products to show in a retargeting ad or whether to utilize video or a still image, the engine first decides the aspects to include in the ad. DCO platforms are now able to achieve this in real-time by identifying the creative aspects that are most pertinent to a given shopper based on their geography or unique habits.

The engine then decides how to best arrange these ad elements to produce the ideal look and experience for each visitor.

The DCO platform now uses machine learning to optimize elements of ads such as color scheme, copy, size of each ad element, and others that are most likely to result in conversions.

A campaign’s use of dynamic creative

To be able to comprehend your customers, and where they are, and apply data science to target them, you need a foundation of high-quality data. You should take into account the following three steps in order to effectively employ dynamic creative:

1. Develop buyer personas using reliable data

Building buyer personas for each target market category is the first step. You must conduct data analysis and identify the salient traits of each group in order to accomplish this. For instance:

  • Age, gender, race, income, and other demographic information.
  • Country, region, and timezone geographic data
  • Consumer spending, browsing, and shopping patterns as well as their interactions with your brand are all examples of behavioral data.
  • Psychographic information, including personality traits, interests, ambitions, and values.

This is just the start; depending on your sector, product or service, and target markets, there are many other qualities that might be significant.

Building a picture of who your consumers are, what their issues and priorities are, how to target them, and how to persuade them to buy is crucial.

2. Produce various advertising and messaging components

The AI must then be given a collection of assets as the next phase. These resources may consist of background materials, headline variations, product photography, or videography, as well as several voiceovers and calls to action (CTAs).

The secret is to develop persuasive text and CTAs using the buyer profiles you developed in step one. Keep your messaging consistent with your brand voice and your target audience’s needs.

3. Keep track of results and make campaign improvements.

Success must be closely monitored as the campaign goes on. You should choose the KPIs that will best indicate if your campaign is succeeding or needs to be optimized before releasing it.

What distinguishes DCO from Dynamic Creative?

Dynamic creative refers to the process of dynamically putting up a group of elements that make up an advertisement, such as headlines, descriptions, backdrops, overlay text, featured photos, video, and so on, in real time according to the specific requirements of a given user.

DCO, also known as dynamic creative optimization, goes a step further.

Here, the DCO platform uses historical data, real-time testing, analytics, and a variety of connected data sources to continuously improve ad effectiveness.

The platform responds in real time by choosing the best set of creative assets based on the user’s identity to make sure they get the correct message at the right moment.

It’s crucial to note that DCO’s adaptable feeds don’t alter the various components used to construct an advertisement; headlines, descriptions, and CTAs are still written by humans, and graphics, photos, and videos are still created by humans, among other things.

Instead, DCO’s prediction engine mixes real-time and historical data and uses contextual relevance to motivate action.

How Do DCO and Creative Management Platforms (CMPs) Interact?

As previously noted, CMPs are essential for facilitating dynamic creative optimization.

To utilize in your DCO campaigns, CMPs let you mass-produce many design variations while still retaining complete control over all creative assets.

Before they are employed in a tailored approach, you may create brand rules, integrate data sources, and implement version controls across all the components of an advertising campaign within your CMP.

By organizing massive numbers of creative assets, automating workflows, and standardizing the review and approval process across 1,200+ media types, online proofing systems like Krock.io provide your DCO server with more resources to work with.

Then, you can integrate your DCO platform with the process to create personalized, automated ad campaigns that improve the customer experience and, as a result, increase client retention, loyalty, and profitability.

Check out more articles on getting started with Krock.io:

If you have any questions or need help, just let us know.


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