What is DCO Advertising?
Dynamic creative optimization (DCO) is a display technology that uses viewer data and behaviors to create personalized ads in real time. The creative is also tested and optimized to pick the best design and messaging to show the viewer at a specific time. Since the creative in these ads is often more relevant to the viewer, they frequently outperform regular ads.
How it works
DCO splits ads into multiple segments with interchangeable creative options for each segment. The different creative options are then chosen and added to the advertising template based on the viewer’s data to create a relevant, more personalized ad.
Basically, DCO leverages algorithms to find out more about a user’s behaviour and intent, based on a wide range of actions they’ve taken online. This is an incredibly powerful tool for advertisers and media buyers.
What is a personalized ad?
Often, advertisers will create multiple variations of an ad based on their key audience characteristics (e.g. job function, industry, or location). They can then leverage specific design elements and wording in their ads to create a personalized ad experience. Of course, they need to ensure their targeting parameters are accurate to truly connect with each individual audience member.
As a consumer, you may be able to pinpoint when you’re being served a personalized ad versus a more generic one. At the very least, even if you’re not compelled to click on the ad and follow through, you’re more likely to remember it.
What ad creatives do I need for DCO?
Where a traditional A/B test only compares one element (such as a different button color from one creative to the next), a multivariate test compares MUCH more. There could be hundreds of variations that are running in order to narrow down your best-performing creative.
One thing to note is that the bigger your audience size, the better the test will be. If you’ve got narrow targeting then there are only so many tests you can run in a short period of time.