The average consumer is exposed to 4,000 – 10,000 ads per day. Standing out among the noise can be challenging, especially as consumers demand more personalization in the ads they see.

According to McKinsey, 71% of consumers expect personalized interactions from the companies they interact with. While this represents a large percentage of all generations, younger consumers in particular now expect it from brands. In a 2022 study, 81% of Gen Z indicated a preference for personalized ads – which proves this is a trend that’s not going away.

Personalization drives performance, engagement, and loyalty. Research has shown that personalization most often results in a 10 – 15% lift in revenue. And some studies hint this number may be even greater. A 2020 Innovid study reported 40% of shoppers had made a purchase as a direct result of a personalized ad. For marketers, the benefits of personalization are clear, and dynamic creative optimization (DCO) is a great way to make it easy.

What is DCO?

DCO is a method of programmatic advertising that leverages AI and machine learning technology to create customized ad experiences. Rather than running one or two creatives as part of a campaign, DCO relies on technology to pair the best creative to an individual user in real-time based on pre-determined parameters.

More simply, DCO uses algorithms to gather insights about a user’s behavior and intent. Creatives are split into segments with interchangeable creative options and updated based on the user and pre-determined triggers to serve relevant and personalized ads.

DCO Triggers

DCO triggers are specific criteria collected from external sources that serve as conditions to form a dynamic creative. Let’s take the weather as an example. It happens to be the second biggest influence on consumer behavior. DCO triggers allow brands to target consumers by adapting to real-time conditions. In this case, it could mean an ad promoting ice cream to a consumer near the store on a hot summer day or promoting travel to a tropical destination in the middle of winter.

Triggers can be layered and include:

  • Contextual data – weather, device, geo-targeting, proximity, context, date, time, etc.
  • User behavior data – browsing habits, interest/purchase history, ad interactions, etc.
  • Audience data – data segments/clusters – including your own data

Why You Should Consider DCO

  • Increased personalization
    DCO collects data fast and ensures users are always viewing the most relevant ads, increasing the chance they will take a desired action. DCO has also proven very powerful within the CTV environment, which is inherently built for personalization.
  • Saves time
    Automated processes result in time savings. The time saved in creating multiple creative iterations increases publishing efficiency. Because the technology gathers the info needed to ensure the best performing creative is served, little to no action is required once it’s set up.
  • Real-time testing and optimization
    DCO makes it easy to test assumptions. By offering immediate results, you’ll be able to maximize ad performance by reviewing real-time metrics to make immediate adjustments and reduce the amount of resources needed to invest in ad creation and testing.

DCO with Equativ

The right partner will make managing a campaign with several creative iterations easy. We’re here to support you in every stage of your DCO journey and to help you build the right strategy to achieve your goals.

We’ll help you identify the real-time data signals, innovative formats, and interactive elements needed to run a successful campaign. Then, whether you provide us with creative assets or want us to build them for you, we’ll help you setup, deliver, and optimize your campaign.

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