DCO is a must-have tool for creating highly targeted and personalized dynamic ads. While it is an automated and hands-off marketing tool, it does require some forethought and strategy for success.
Personalization has become a must for digital marketers, as today’s online consumers expect ads to show them what they want, when they want it. An overwhelming they’re more likely to make a purchase when a brand offers a personalized experience, while they’re more loyal to companies that demonstrate a clear understanding of their personal needs.
What Is Dynamic Creative Optimization & How Does It Work?
DCO is a type of programmatic advertising technology that gives marketers the ability to optimize in real time. Using data that’s collected when the ad is being served, it creates a highly personalized experience tailored to the user’s needs at that exact moment in time. Dynamic elements are instantly updated to provide content that’s most relevant based on a broad range of data signals, such as location, weather, gender, device, buying behavior, and where the user is in the buyer’s journey.
One of the reasons DCO is so effective is because the process is completely automated and continuously improving itself. AI takes care of the multivariate testing and automatically optimizes ads based on data, which not only improves performance but also allows marketers to produce a high volume of ad variations quickly and at scale.
DCO is also easy to implement when integrated with a data management platform (DMP) for access to data feeds and a creative management platform (CMP) for access to creative assets like copy, images, and display.
Getting It Right: 5 Best Practices For Dynamic Creative Optimization
While DCO is a hands-off marketing tool in many respects, it does require some forethought and strategy for success. To make the most of your next campaign, keep the following best practices in mind.
1. Meet Customers Where They Are
Successful DCO campaigns adapt to the audiences they serve at every touchpoint. This includes determining where users are in the sales funnel and displaying creatives that best match that mindset. For example, creatives served to customers close to action might feature harder-selling pitches than those designed for higher-funnel consumers. You can also use conversion tags to track your creatives’ performance in the buyer’s journey and replace poor performers with new variations that might catch customers on their way out.
2. Include Contextual Elements
3. Diversify Your Assets
4. Trust the Machine
As the “O” in DCO implies, one of the biggest advantages of the technology is that it’s specifically built to optimize your creatives. But the platform only has as much control as you allow it. Resist the urge to make ads too busy and overload them with as many products as a template will allow. Trust the DCO platform’s AI to do its job and select the most effective elements for the moment based on data.
5. Review Performance
While DCO handles the minutiae of multivariate testing, it’s up to you to examine your campaign as a whole and determine if it needs adjustment. Make time to review your creative’s performance data regularly so you can identify the elements that are most effective in driving engagement and optimize your strategy accordingly.
DCO is a must-have tool for creating highly targeted and personalized dynamic ads. Using a powerful combination of advertising display and analytics, the technology helps brands deliver the right message to the right customer at the right time. It drives engagement and increases brand loyalty by creating the contextual relevance that today’s consumers not only prefer, but have come to expect.