Dynamic creative optimization (DCO): Definition, examples, tips
Dynamic creative optimization, or DCO, is a type of programmatic advertising that allows advertisers to create personalized ads based on real-time data. DCO is a powerful tool that can help marketers create more relevant and effective ads.
What is dynamic creative optimization (DCO)?
DCO stands for dynamic creative optimization. In advertising, DCO technology rapidly builds multiple iterations of an ad using the same base creative, while tailoring parts of the ad based on audiences, context, and past performance. This helps the ad resonate with consumers.
Though historically advertisers have used DCO primarily as a direct-response tool—for instance, to remarket to retail audiences with a product they’ve previously viewed—savvy advertisers are increasingly using DCO to employ relevant messaging across the marketing funnel. Branding and awareness tactics can benefit from insight-driven creative—for instance, by using shopping or streaming signals to provide different imagery or product features. A sophisticated DCO strategy considers how creative can adapt dynamically at every touchpoint with audiences.
Additionally, advertisers are looking to use DCO increasingly across multiple channels, not just display advertising. Dynamic video, for instance, is set to become more popular, because the in-stream video and streaming TV ad channels it runs on continue to grow as a proportion of advertising budgets.