For marketers, the benefits of personalization are clear and DCO is a great way to make it easy. Here's what you need to know to get started.
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.
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 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:
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.
As Director of Marketing and Communications at Equativ, Amy leads the company’s owned content, social media, and public relations strategies. Collaborating with stakeholders across the organization, she writes on topics ranging from Equativ’s product innovations to broader industry trends.
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