Dynamic Creative Optimization: What is it?

Dynamic Creative Optimization: What is it?

By: Cortland J. Fondon

Automated advertising involves dynamic creative optimization, which is another form of programmatic advertising. Using real time technology, dynamic creative optimization optimizes ads via display ad technology dependent on multivariate testing. In other words, with DCO the developer creates an algorithm that interprets test results of multiple A/B tests completed simultaneously. When used effectively, dynamic creative optimization improves the right banner via real time data dependent on a web user’s search intent. Having brand-oriented banners ensures that random web users see the most applicable ads at the most appropriate and influential time.

Getting Started with Dynamic Creative Optimization

In a blend of automated advertising process and dynamic ad creatives, DCO follows suit with the on-going creation of ads that leave the best impression on web users. In setting up DCO an ad template is arranged. Typically this will include a variety of variables, ranging from one to three variables. These variables may include contact information for a retail store, a logo, font color, a sales promotion, or the description of a product according to the Digital Marketing Glossary. Keep in mind that these variables are not always associated with a segment of the population, or even the A/B test data. For instance, a call to action or the font color is randomly generated. This increases the optimization of an ad, since the change of certain variables can improve the chances that an online user will notice an ad for a company in which they are well familiar.

Understanding the Data via DCO

Once the information has been gathered using the algorithm along lines with the A/B tests, this data is further broken down. Retargeting ads to a more specific segment of the online population adds to the effectiveness of dynamic creative optimization. For example, with DCO in place, a marketing provider can target ads to a particular location, such as for the retail store included in the variables, via their IP addresses. This ensures a more localized ad result, both benefiting the retail store and the potential customer. As a DCO vendor, ads are generated in an instant, which means that these ad arrangements must maintain a connection to an ad exchange or ad server.

Automation at its Best

A prime feature for dynamic creative optimization is the ability to automate the optimization. When combined with other features including auto-learning and algorithms, DCO allows marketers to rest assured that their advertising efforts are in the optimal position for visibility. Additionally, DCO is not only limited to banner ads. You can also utilize DCO for the development of links sponsored on social media, as well as videos and rich media.

Concerns with DCO

Time is of the essence for marketers, and unfortunately setting up DCO on the onset can take a lot of time, often as long as 30 days to initiate. Also, as it takes the analysis of data via the algorithm to increase ad performance, this takes running time to establish. In comparison with programmatic creative, DCO is slower in setup and editing, and it must be pre-programmed on the onset. Additionally, as noted by PaperG, the cost related to DCO is much higher than a programmatic creative, with the minimum spent for ROI on a DCO in the $100,000 range.

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