It seems that in the world of adtech there is a never ending glossary of terms and techniques that are all incredibly technical.
One that I’ve come across during my journey as a marketer in the nuanced adtech world is the term Dynamic Creative Optimization.
I know, know, another term to muddy up your understanding of adtech terminology, but this one is one of the simpler ones to grasp.
What is Dynamic Creative Optimization?
An umbrella term under programmatic creative, dynamic creative optimization (DCO) is a type of “display ad technology that creates personalized ads based on data about the viewer at the moment of ad serving.” Essentially, it’s a form of programmatic that displays ads unique to the visitor.
DCO serves up dynamic ad creatives that are basically personalized content. While it may at first seem that DCO is all about changing the look and feel of an ad creative - think colors, font, copy, etc. - it actually has to do with what type of advertising content that’s served up
How are dynamic creatives personalized?
Dynamic ads are constructed in real-time in an ad factory type of outlet that digests feeds of data like location, age, gender, and other data points, while following a certain set of rules to build hundreds, thousands and even millions of unique ad creatives in mere seconds. An ad using dynamic creative optimization will provide advertising content to visitors based on factors like their specific location, web history, web searches and other factors.
What’s an example of dynamic creative?
Okay, say you’re looking for a recipe on how to make the best Baked Alaska. You use recipe and cooking websites to look for the best recipes. Maybe you even search for new, fancy baking pans.
As you continue to to search, dynamic ads will be shown to you regarding things related to your search. Data reveals you’re on the hunt for the best recipe and you will start to see ads that maybe display recipe sites, stores that sell cookware, maybe even food delivery services and others.
Then after you’ve found your Baked Alaska recipe, maybe you wonder if the dessert’s etymology is Alaska related. And then you start a new web search and start looking up information about Alaska and through the act of DCO, you start seeing ads like travel deals to Alaska, outdoor gear, hotels and other Alaskan related things. With DCO, brands can continually reach consumers and tailor results based on a visitor’s web activity and display ads that are going to be the most relevant to them.
What are the benefits of DCO?
Last time I checked, the Internet is a real messy place with so many groups of people competing for your attention. We’re going blind to ads as it is, but DCO helps advertisers break through the clutter and target the right people. And when ads are tailored specifically to your wants and needs, you are more likely to engage with the ads, thus increasing click-through rates and conversion rates for brands.