Dynamic creative optimisation (DCO) is a display ad technology that uses personalised, real time data from users, such as location, demographics, and browsing activity, to curate the ad to the intended customer. It uses machine learning and AI technologies to deliver a relevant and unique advertising experience that outperforms its static counterparts. These will select from pre-made assets such as images, videos, graphics, illustrations, and CTAs using live data, analytics, and testing to optimise the appeal of the ad. DCO is frequently used in ecommerce, retail, travel and entertainment, finance, and the automotive industry. The skills required for DCO include coding, design, storytelling, and analytics.
Some hypothetical examples can be used to illustrate how this works. For example, a consumer checking their phone on a winter morning may be shown ads for cafes in their area where they can have a warm drink. If a user has been looking at certain travel destinations, they may be shown flight rates from their home city, as well as deals on hotels, car rentals, or activities in their target destinations. This works in the same way with other products the consumer may be considering. Ads may also be targeted based on their lifestyle or interests. In this way, DCO helps you create a one of a kind experience for every member of your audience.
DCOs are regularly used in marketing retargeting ads, when the customer has viewed a product or added it to their shopping cart but not yet made the purchase. These ads can be executed in the form of dynamic texts, images, CTAs, or any branding messages to remind the customer of their buying interest. A data management platform (DMP) is used to supply data directly to the ads servers, producing efficient, personalised ads that require no human interference.
In dynamic ads, data is fed to a template that is predetermined by algorithms that are set in the management system. As this process is automated, it requires less complex coding and is more straightforward to set up than HTML5 ads. This flexibility offers more opportunities for engagement and creative optimisation. HTML5 ads take more time to prepare as they require more coding, and are made for single use, making them much more difficult to optimise. It is a manual process that doesn’t pay off in volume compared to dynamic variants.
Personalised ads: DCO helps companies appeal to specific customers based on informative data, delivering a more customised and memorable shopping experience. Research shows a direct correlation between personalisation and increased sales, with 77% of shoppers more likely to choose a brand that offers a personalised experience.
Live data: DCO responds and adapts to user data in real-time, creating instant, up-to-date creative ads that are the most relevant to the intended user. This helps expedite advertising by delivering content that has immediate and maximised potential. Through investing in DCO, companies can reach the right audience, at the right time, with the right message, even as this message evolves.
Hands free automation: Because it is run by preset algorithms, it saves time and money, requiring little to no manual effort to run besides performance analytics.
Geo-targeting: Geotargeting sources users locations from their IP address and uses it to display information unique to their location, whether it be their country, region, or city. This can inform the user of specific offers available in their local area, for example.
Targeted storytelling: Ads shown to a specific audience can be sequenced to provide a particular narrative. For example, a company can develop a focused campaign for select customers they believe have reason to be interested due to their age, location, habits, browsing history, and other live data.
Data feed: Data fed banners will display information sourced from a spreadsheet. This can be edited to include up to date information and ensure that all ads are displaying the correct information. For example a banner for a grocery store may choose to showcase a banner for discounted cleaning products. The percentage discounted or the new price is looked up automatically in the spreadsheet and displayed accordingly. This is often used in retargeting campaigns that entice viewers to use a product or service. It can be combined with geo-targeting campaigns to show specific information, with spreadsheets divided into the appropriate regions.
Complementary ads: Based on data fed to the DCO management, users can be targeted with ads related to their browsing history or recent purchases. For example, if a user has booked a flight to a holiday destination, dynamic ads can automatically begin to display offers for hotels and activities in this location.
Demographic targeting: DCO can be used to advertise the same product in a different way depending on the target demographic. For example, it has been shown that the way consumers below and above 50 years of age have different expectations and perceptions of personalised ads. For example, when it comes to holiday destinations, viewers in an older demographic may prefer ads with museum or historical site recommendations, whereas the younger demographic may prefer those showcasing local nightlife and festivals.
From awareness to retention and conversion, DCO is a superb way to keep users engaged with your content in each layer of the sales funnel. It helps companies build data-driven and context-based campaigns that take personalisation to a new level and guarantee a suitable and successful advertising experience.
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