teracent

Dynamic Creative Optimization – Where Online Data Meets Advertising Creative

Dynamic Creative Optimization Basics

Dynamic creative optimization is a relatively new technology to the online advertising space, but it is sure to see tremendous growth this year.  Why?  Because dynamic creative optimization allows marketers to put the right message in front of the right consumer.  It allows them to differentiate and custom-tailor ad creative to people using data, and it is extremely effective at increasing a campaign’s performance, almost to the point of suspicion.  Many case studies show an increase to CTR well above 100% vs. non-personalized creative, and decreases in cost metrics of 60 – 70%.  Combine these two metrics and the impact to ROI is usually eye-popping.

As we’ve written before, thanks to data marketplaces and real-time bidding through ad exchanges, marketers now have very powerful tools to reach a very precise audience on the web thanks to an explosion in consumer data.  Literally hundreds of companies are in the business of qualifying people into anonymous buying segments and reselling that intent data to marketers, who then use it to target those users with ads across the web.  So technology has allowed marketers to reach the right person at the right time with fairly impressive scale and pricing efficiency.  Powerful stuff to be sure, but what about the right message?  For example, if you knew about a single, 25 year old male in California who was in the market to buy a car, the last thing you want to show him is an ad for a minivan that performs well in the snow.  He’s probably much more interested in a hybrid car that can store a surfboard on its roof.  That’s a comically extreme example, but the point is that regardless of the targeting, marketers still need compelling creative. And dynamic creative optimization is where data meets the creative message.  It’s difficult to understate how exciting this technology is – placing the right ad in front of the right person and the right time is practically a holy grail for marketers and it looks as though the online advertising industry has figured out how to do it, or at least invented the tools to do it. (more…)