Dynamic creative optimization (DCO) is the real-time technological process by which advertisers can personalize advertising creative (often thousands of different creative units for one placement) through the use of various technologies to match the context that is known about a specific person or user in order to extract the greatest value out of a potential customer. This ability to run hyper-relevant ads at scale is at the center of the advertising conversation right now because creative is re-gaining importance in the digital media landscape and DCO has been found to be so effective at improving advertising performance and cost efficiencies. Think of DCO as intelligent advertising customized for the person looking at it.
So imagine someone is watching a commercial on TV. Though the advertiser might know that person lives in New York and that’s why they’re receiving a New York-relevant ad, that ad might not alter itself to the context of the viewer beyond that. In this case, it is a one-size-fits-all ad and the customer will see the same ad whether they’re 25 or 45. The same is often true in digital display advertising online — everyone may see the same ad for the massive summer sale at a big department store no matter where they live or what they like.
DCO and the process of personalized advertising has changed the game. This real-time engine enables hyper-relevance, which takes into account the context of the customer as opposed to the marketer’s desire to reach a certain bucket of people. DCO is simply the assembly of this creative in real-time to match their needs.
In its DCO work with Celtra, a global CPG brand that wanted to be part of people’s morning and evening routines looked first at whether the individual had purchased a product from the brand before. If they had, the next layer looked at whether or not that person was already performing the behavior (even if it was with another brand). This deeper level of data about consumer behavior, sentiment and beliefs makes it much easier to see who falls into your category of persuadables — people you might be able to convert into customers.
Data-Driven DCO Dynamic Creative Dynamic Creative Optimization Personalized Creative