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The digital marketing glossary > D > What is Dynamic creative optimization definition?

What is Dynamic creative optimization definition ?

Dynamic creative optimization, aka DCO, is a mix of dynamic ad creatives and automatic optimization processes. It allows to deliver the best custom-tailor ad creative for each ad impression in real time.

The first step of DCO is to create an ad template which encompasses different variables, generally one to three variables are defined in the template.

Variables may be for instance :

- font color
- unique selling proposition or offer
- a retail store address
- an image
- a product

An example of template with associated variables :

Image credit Advolve


The second step is to use data related to each ad impression to deliver the best ad. A creative may be assigned to a micro segment of consumers or only to an individual according to available data. For instance, the address of the nearest store and even the distance may be displayed in the banner according to IP addresses.

Ad exchanges and DMP have leveraged the power of DCO as more data is available for each impression.

DCO dedicated vendors offer platforms which create the ads on the fly. These platforms must be connected to the ad server or the ad exchange for passing along the data.

In some cases, variable variations (colors, calls to action, etc) are not associated with data or segment but randomly tested.


The third step is auto-optimization. Through algorithms, auto-learning and MVT, campaign and creative choices are optimized according to campaign objectives.

Dynamic creative optimization may be used for all ad formats (banner, rich media, videos, social media sponsored links, etc..


Strictly speaking, all retargeting banner campaign are not always an application of dynamic creative optimization. Indeed, the creative is made dynamically, but there is not always an optimization process based on the campaign history.


A few vendor videos showing DCO process :


Published on Wednesday 21 November 2012 (Authors)