Dynamic Creative Optimisation: How can it benefit you?

Dynamic Creative Optimisation, also known as DCO, is a term used across the digital marketing world, but what exactly is it and how can you use it to increase the performance of your marketing?

What is Dynamic Creative Optimisation?

Dynamic Creative Optimisation is the technological process that serves specific and relevant advertising by dynamically changing ad creatives to suit the user.

It is display ad technology that goes beyond the generic walls of personalised advertising.

Think of Dynamic Creative Optimisation as a well-balanced combination of data and creativity which delivers maximum impact to users while saving you lots of time.

For example, a dynamic creative ad will not just be displayed to a user based on their age, it will take into account many other factors before deciding which variation of creative to serve.

What are the main elements of Dynamic Creative Optimisation?

Dynamic Creative Optimisation is made up of 3 main elements:

Creative Management Platform (CMP)

A Creative Management Platform enables Dynamic Creative Optimisation to become reality.

It is the production engine that creates and controls the design versions needed for a DCO campaign.

A Creative Management Platform offers several capabilities, below are just a few:

  • Ad builder tool to design creative
  • Scaling tool to mass produce creatives in minutes
  • Publishing tool with integration
  • Targeting and retargeting capabilities
  • Advanced reporting

In addition to this, CMPs also support you in many other ways, such as enabling you to work across many markets, constant collaboration, publishing and scheduling in real-time, dynamic content supported by live data and optimisation for each campaign.

Data Management Platform (DMP)

A DMP has the ability to collect data from various sources which enables the management of the consumer journey in the most efficient way possible.

A DMP allows you to collect and oversee data about your customers. Data such as their geographical location, online behaviour, age and personal interest can all be seen in one place.

The data is used by algorithms to determine which creative would best serve the user’s preference.

Some examples of the types of data used to generate optimised ad creatives are:

  • Device Type
  • Time
  • Weather
  • Location
  • Demographics
  • Demand Side Platform (DSP)

DSPs are an important tool that advertisers frequently use to run their online media campaigns.

They allow you to buy impressions across a wide range of websites. These sites make their ad impressions available through marketplaces that are called ad exchanges.

DSPs decide which impressions are the most effective for your campaign.

One of the most popular pricing methods for impressions is CPM (Cost per Mille).

What are the benefits of Dynamic Creative Optimisation?

Save Time

Implementing Dynamic Creative Optimisation into your workflow and advertising campaigns can improve the performance of your ad campaign and significantly reduce the time it takes to create and scale creatives.

Increase Conversion Rate

The main aim of Dynamic Creative Optimisation is to increase conversions by providing extremely relevant dynamic ads to users.

Increase Performance

Dynamic creative enhances existing ads by injecting them with real time testing, live analytics, and creative optimisation.


Everyone’s personal preference will differ, the wants and needs of online viewers will be vastly different so the use of data is paramount to ensuring that each banner ad is specifically personalised.

By dynamically creating relevant, impactful and personalised messaging to each user, you increase the chance of them taking the desired action.

Complete Control

Dynamic ad templates can be custom built for you, gone are the days where you would be restricted by templates.

You now have complete control over how your brand is portrayed and experienced by your target audience.

The ad layouts can be delivered across all devices and consist of features such as a drop-down box, product carousel and promotional clock.

Unique Reach

Dynamic creative allows advertisers to reach out to consumers who show an interest in specific products and services, through understanding their online behaviour and needs.

Dynamic creative combined with consumer buying in real-time provides a unique and direct reach to the audience rather than delivering generic ads to the masses.

What’s the difference between a CMP and DCO?

DCO is the process of technologically serving personalised ads using data to determine which variation of creative will be the most effective.

A CPM is the place where the design, optimisation and scale of ad creatives required for a DCO campaign takes place.

The CMP provides the dynamic design and DCO provides the content to the user.

How do Creative Management Platforms and DCO work together?

Creative Management Platforms play an important role in supporting dynamic creative optimisation. CMPs allow you to produce different design variations of creatives at scale, while allowing you to have complete control over all creative assets.

Within your CMP, you can connect data feeds, define brand guidelines, and implement creative variation controls in every element of your ad campaign.

You can also sync your DCO platform for personalised ad campaigns that enhance user experience and interaction.

Different ways to use DCO

DCO can be used in many ways, below is a list of the most popular ways to use DCO:

Dynamic Feed Campaigns

Feed based campaigns are predominantly used for product advertising on e-commerce websites.

Dynamic creative campaigns that are focused on products serve users with creatives using data from a spreadsheet. They allow you to display your entire catalogue and are very useful for automatically changing ads based on your stock levels; you don’t need to worry about wasting ad spend on products that are out-of-stock.

Location Based DCO Campaigns

Geofencing and DCO is a very powerful combination of digital advertising tools. You can localise the content in your ads by using images of local landmarks, ad copy specific to the area or local events.

This is very useful for attracting people to your physical location or luring them away from your competitor’s premises and into yours.

Find out how location based campaigns can be a game changer for car dealerships.

Demographic Data Targeting

Demographic campaigns are perfect for dynamic creative.

DCO makes it easy to plan and create individual messages for people in different demographics. It allows you to take the same product and promotion and offer it to people in a way that is relevant to their individual demographic.


Dynamic retargeting is one of the most popular ways DCO is used.

This is a great way for you to lure consumers back to your website after they have looked at your products and not made a purchase. It can also be used to attract people back to abandoned carts.

Using a CMP, you could create 15 different creative ads about your product with 30 different call to actions in a matter of minutes and let a DSP determine which combination of ads to serve to which audience using historical performance data for maximum effectiveness.

Contextual Advertising

Contextual targeting will place your dynamic ads on websites that contain content that is relevant to your ads. For example, a golfing shop will have much better engagement and is likely to see a higher ROI if they place their ads on websites that are related to golf.

Who uses DCO?

In previous years, DCO was a method only used by the largest agencies and brands. Thanks to advancements in technology, DCO is available to any company who has a marketing budget.

You don’t even have to know anything about DCO to reap the rewards, companies like Fluid Ads offer fully managed campaigns to make DCO available for everyone.

The different stages of DCO

Increase engagement and personalise messaging for every stage of the customer journey.

DCO can drive engagement by meeting the needs of users at different points of the funnel.

Top of the funnel

Increase brand awareness by creating interactive and engaging ads.

Middle of the funnel

Educate users with persuasive and informative content.

Show how your product or service aligns with their values, hobbies or interests.

Bottom of the funnel

Establish and nurture your customer base. This is where you create ads designed to engage users into taking a desired action, such as a purchase, app install or contact form completion.

What are some examples of DCO?

DCO can be really simple or very complicated, depending on the number of variations you plan on using for your campaign.

For example, a car dealership with 14 different locations in different cities. Each dealership has the same offering but they want to include the appropriate city, county, and contact information for the location that is closest to the individual that the ad gets displayed too. In this case, the car dealership would have 14 different variations of ads, and the AI that powers DCO would display the right ad to the right person.

Another example, on the more complicated end of the DCO spectrum would be a clothing retailer with hundreds or thousands of different products. It is easy to see how thousands of products shown to specific audiences could make the process of DCO seem daunting.

Thanks to AI and machine learning, it is possible to personalise ads at scale, in real-time with DCO.

Flexible solutions to suit your business