In short, dynamic creative optimization (DCO) refers to online ad tech that enables delivering highly-personalized advertising messages to viewers, depending on a set of microtargeting parameters (e.g. weather, time of day, specific audience segment, and more).
DCO Specifics in Online Video Advertising
Initially emerged in display advertising, DCO implies the dynamic optimization (i.e. change) of ad messaging in the ad creatives, to ensure their maximum relevance, hence maximum audience engagement.
In the programmatic video advertising context, however, dynamic creative optimization implies certain specifics and a number of limitations, both in terms of production and the ad delivery logic.
Namely, the key challenges include the necessity to produce multiple video source files and configure all content assets properly to enable the flawless selection and display of the best-fitting variation at the time of ad serving. More importantly, it’s also crucial to handle audience micro-segmentation in a precise manner, so that the delivered ad creative is highly-relevant and appealing to a target viewer.
In this respect, automation is, undoubtedly, the key.
First, it’s vital to streamline the ad rendering flow, so that multiple ad creative variations are being produced fast enough, to have them all ready for serving within one video ad campaign.
In view of this, one of the possible solutions is to opt for shorter (hence lighter) ads that include variations for one or two video frames max., and render source files (usually in MP4 format) using the reliable video editing software (e.g. Adobe After Effects or else).
Secondly, it’s also important to ensure the accessibility of all ad assets at the time of serving, to minimize loading issues and ad errors.
In this respect, working with a video ad server solution that offers robust video hosting capabilities is a huge advantage.
Benefits of DCO
If handled properly, dynamic creative optimization can be a powerful driving force, helping marketers achieve greater audience reach and higher viewer engagement with their video ads, hence increasing video completion rates and, consequently, the brand’s ROI.