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Programmatic creative and dynamic creative optimization (DCO) have been commonly mistaken to be different technologies. However, in actuality DCO is a subset of programmatic creative.

Programmatic creative refers to the set of advertising technologies that add speed, scale, and automation to the creative process. This includes both ad production and creative optimization. Programmatic creative allows data-informed, software-assisted creative executions that deliver on the promise of modern digital marketing. The intention of programmatic creative is to utilize data on which million of dollars are being spent to leverage in advertising. This media form activates the data in order to execute a successful campaign. Programmatic media brings with it enormous amount of potential and scope in the manner in which stories are being relayed in online paid media. This media format brings together data and creativity ensuring brands to showcase in a more significant and effective manner.

Programmatic creative is most effective in customizing ads basis the target audience, which makes it thoroughly relevant. In comparison to showing generic advertisements to all, segmenting the audience into relevant groups and showing them a tailor-made ad, is bound to have a higher impact. Programmatic creative enables testing the ad communication and optimizing it by creating multiple ads with the purpose of testing and potentially automating the test to optimize on its own.

Below is a classic example of programmatic creative advertising executed for Sun & Sand Sports

DCO can be simply explained as doing a bunch of A/B test simultaneously, using algorithms to interpret the data or results and then accordingly improve performance. DCO is like an ad factory where dynamic creatives come in. DCO ad unites utilize data and rules to generate thousands of unique creatives on the fly. This technology was introduced before programmatic creatives became well known. DCO was originally used with the intent of re-targeting shoppers with products they had either viewed or abandoned in their shopping carts.

Dynamic creative optimization (DCO) technology automatically optimizes creatives based on multivariate testing. Button color, ad copy, images and offers are few of the traits that can be tested. These ad units are preferably used in campaigns that expect to receive greater response and where impressions that are served do justice to the amount of budget that has been invested in testing multiple variants. Additionally, also where Return on Investment (ROI) is directly proportional and is tracked all the way to sales.

Programmatic ad buying has changed the face of online advertising. The potential usage of programmatic creative is highly diverse in nature. It’s impossible to tell what portion of advertising is now traded programmatically, but it’s definitely on the rise. It’s mainly online ads that are traded programmatically, but increasingly media companies and agencies are exploring ways to sell “traditional” media this way, including TV spots and out-of-home ads.


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