Dynamic Creative Optimization (DCO) Ads contain a variety of changeable components — such as main body background images, key visuals and/or text copy. These are dynamically assembled and served, determined by data signals from external sources such as past website behaviour, geolocation, etc. As a result of such customization, dynamic creative optimization helps improve the performance of digital advertising campaigns on programmatic platforms.
One of the key benefits of DCO solutions is that it enables you to personalise your ads for each user, based on factors such as location, time of day, device type, and past behaviour. This means that you can create ad variants that are relevant to their needs and interests, which will help improve the likelihood of them engaging with your brand. This results in more relevant and effective ads for users, which leads to higher click-through rates and better ROI for advertisers.
Although dynamic creative solutions are is not a new concept, they are quickly gaining traction as more brands recognise the benefits of this approach. If you're looking to get started on DCO, here are a few things to keep in mind:
- Define your goals: What do you want to achieve with your campaign? Do you want to increase brand awareness, drive sales, or something else? Once you know what your objectives are, you can create ad versions that are tailored to meet these goals.
- Identify your target audience: Who do you want to reach with your ads? What are their demographics, interests, and behaviours? Knowing this information will help you determine which ad versions will be most effective in reaching and resonating with your target audience.
-Aligning creative and media teams: Ensure that your creative team and media team are both involved in setting up the DCO strategy. The creative team is responsible to produce the master creative templates and different ad variants, while the media team is responsible to ensure proper data on targeted audience segments are available.
- Determine your data sources: Identify your data sources, e.g., 1st party customer data, website data, external data signals through API, and ensure that you have sufficient data to justify the need for different ad variants.
- Set up Master Creative Template and its variants: The master creative is the base ad template that contains all necessary elements, e.g., headlines, descriptions, images, logos, etc. Ad variants are different versions of the creative master with slight changes to copy, images, call-to-action (CTA), etc.
- Test, test, test: As with any digital marketing campaign, it's important to test different versions of your ads to see what works best. Try out different combinations of images, copy, and call-to-actions to see which performs best with your target audience. Then, once you've found a winning combination, roll it out across your entire campaign.