As a concept, it’s not new. But, like everything else, the advancement of technologies has seen it become more sophisticated and deliver greater ROI to Advertisers. Thus fuelling more attention from mainstream marketing. It has the potential to revolutionise creative ad design in a similar way to how programmatic trading has done to media buying.
What is dynamic advertising?
Dynamic Advertising (sometimes called dynamic creative) is the ability to change the content of an ad, before it shows on a webpage, based on external data. External data can include but is not limited to, weather, time of day, day of week, a user’s past browsing behaviour, segment definitions, events, fluctuations in the stock market, etc. Dynamic creative allows advertisers to deliver different messages to different users at different times.
This creates some very interesting marketing opportunities for brands to be more relevant to their target audiences.
The different types of dynamic advertising
Dynamic ads come in a number of common forms which can have different names depending on who you’re talking to.
(Curated) Dynamic Creative
This is where marketing and creative teams agree on the exact messages to present to their audiences at specific moments. The ads are fully designed and the appropriate mix of assets are presented to the associated user and moment in order to procure a response. What makes this approach dynamic is that a single ad unit would serve all messages, rather than each message being an ad unit itself.
Typically used to sell products or services, feed based ads show a series of goods that are relevant to an individual. The data in the feed, assembled by a person, comes from a specific source and is plugged into an ad so that certain content is updated. This can also sometimes be called Dynamic Retargeting
Examples of feed ads are plentiful. A user recently viewed a flight to NY and then receives ads showing up-to-date flight prices for that same flight/route. You looked at a pair of shoes on a website and now everywhere on the internet you go you see ads for those shoes, in various different colours. A sports fan having visited their favourite team page receives updated betting odds in the ads they see.
Dynamic Creative Optimisation
Very similar to Curated Dynamic Creative, in that the right message, to the right user at the right time is the aim. The difference is instead of individuals constructing the creative, an algorithm learns what combination of colours, images, and text incites the best response toward achieving the goal. The algorithm would take into account different data (weather, time of day, device, user, etc), and serve up the correct assets to elicit the best response. The challenge here is that training an algorithm takes time, so a portion of media spend is used churning through ineffective permutations of ad content.
Why is dynamic creative so powerful?
The digital advertising industry experienced a shift from context to audience and has undergone a data revolution (not to say context isn’t important). All of this has been great for media buying as Advertisers are better able to target and connect with only those individuals that are interesting to them. But because there’s been a one-size fits all approach to the creative that advertisers deliver, ad content relevance has left much to be desired. Dynamic creative can improve this situation.
People are not always the same person throughout the day (Moments).
As we go through our daily lives, we are not always the same person and have very different mindsets; when I am commuting to the office I seek quick information bursts; when I’m searching for something work related during the day I am interested in details; while I’m relaxing on the sofa after a long day I want entertainment; and when shopping on the weekend, I want products and prices.
The same message to any one individual will not always resonate. Dynamic creative allows the ad content to improve relevance based on a user’s context.
Makes better, more relevant, use of media spend.
Even though Advertisers have experienced greater efficiency in their media spend by targeting audience, we’ve just established that that audience isn’t always the same. Delivering the same content won’t create a meaningful connection in every context. So, without relevant creative there’s still wastage in media spend.
It allows marketers to pull customers through the purchase funnel.
Another benefit of dynamic creative is that advertisers are able to create predictable dialogues with their customers in order to drive them through to conversion. Consumers tend to exhibit similar behaviours when purchasing similar products. Dynamic creative allows marketers who understand their users’ behaviour to deliver appropriate messaging that drives conversions.
Over past few years we’ve experience big changes in how marketers buy media to connect with their audiences. But creative design and delivery haven’t realised the same evolution in distributing more personalised ad experiences. As a result, Marketers continue to waste media spend by presenting irrelevant ad content to their target audience.
Dynamic advertising is the final cog in the machine that will allow advertisers to truly eliminate wastage in their marketing. it allows marketers to leverage their wealth of data to deliver the right message to the right user at the right time.
With all that’s going on in the world right now, it’s both a good and bad time to be an ecommerce business. Read our article to see the impact of Coronavirus on eccomerce.
With data being a fundamental role in your digital advertising strategy Fluid Ads looks at the best marketing strategies to get the best out of your data.
Read how we can help you set the right budget and make the right decisions for your marketing campaigns.