By Daniel E. Aks and RJ Turchick
Perion Marketing
13th Nov 2024
Research consistently shows that creative execution accounts for at least 50% of campaign results¹. For serious advertisers, the primary focus must be finding and empowering creative teams while providing them with cutting-edge tools and frameworks for experimentation.
In this post
Dynamic Creative Optimization (DCO) is now a powerful tool for juicing creative execution. Although it’s not a new concept, companies are experimenting with it every day, yet its full potential remains largely untapped. However, we believe that brands are only scratching the surface of DCO’s capabilities to stimulate brand affinity and drive sales growth.
“In advertising, DCO technology rapidly builds multiple iterations of an ad using the same base creative, while tailoring parts of the ad based on audiences, context, and past performance. For instance, a beverage company’s base ad might automatically adjust to show hot coffee in cold weather locations and iced drinks in warm regions, while simultaneously varying messaging based on time of day and viewer demographics. This helps the ad resonate with consumers.²”
However, many current implementations often fall short of DCO’s transformative potential, by barely tweaking the messaging. DCO today uses rules-based machine language to access the same base of messaging and then differentiates the delivery depending on several mundane factors such as weather, behavioral segments, funnel positioning, and more.
Typically, these signals then drive the creative execution, manifested by changes in, for example:
We propose a more ambitious framework we call BIG Creative:
Data + AI + Design + Structure = Expanded Creative Possibilities
Under this paradigm, entire new constructs can be brought to the market.
The broad point we wish to make is this: DCO offers a scalable approach to far more ambitious experimentation with branding, and the ability to challenge adages about what can and cannot be done with creativity. DCO allows us to directly hit taboos and try new things. BIG Creative is the gateway.
For example, when MTV first launched, its hyper-creative team wanted to break the mold. They proposed a chameleon-like logo that would constantly change. Traditionalists were stunned by the idea of an alternating core logo — it was unheard of at the time. But this bold approach led to a revolutionary brand identity that defined an entire era.³
There is plenty of debate about the efficacy of the logo strategy but it proved effective for several key reasons:
Before DCO, some constraints would argue against the benefits above. For example, labor intensity, brand dilution, confusion, and more. However, we believe that the advent of effective DCO mitigates all of this. Exposures can be controlled to manage dilution and confusion and automation alleviates the labor issue.
Logo changes aren’t the only area where breaking taboos might be facilitated by DCO.
Once upon a time, it was thought that ad campaigns had to be singular, and multiple messages would confuse the market. GEICO is a great example, with its simultaneous campaigns featuring the iconic Gecko mascot alongside ads promoting 15% or more savings on car insurance. The Gecko served as an effective, memorable character to engage viewers emotionally, while the “15% off” message delivered a clear, essential value proposition focused on cost savings. This dual approach was highly effective, even back then.
In the era before sophisticated targeting, conventional wisdom held that multiple simultaneous campaign messages would confuse the market. GEICO challenged this assumption by successfully running dual campaigns: the Gecko mascot for emotional engagement alongside the “15% or more” message for rational appeal.
Using DCO, could this entirely successful campaign have been improved? We argue yes, as the timing and flow of each stream could be tailored programmatically through the BIG Creative prism.
Modern DCO capabilities could enhance this approach further through:
We believe that broad experimentation is now both affordable and straightforward, thanks to emerging generative tools that enable real-time video campaign creation. Advertisers can measure performance instantly, gaining insights on each ad’s effectiveness. For example, if a 15-second video is skipped within a few seconds by a specific audience segment, advertisers can quickly identify what needs adjustment.
The convergence of DCO and generative AI creates unprecedented opportunities for creative experimentation. Implementing multiple creative advertising campaigns and logo variations is not just feasible, but potentially highly effective. These technologies address many of the traditional challenges associated with diverse creative strategies, such as resource constraints, time limitations, and the need for personalization at scale. As these tools continue to evolve, they are likely to become indispensable for marketers aiming to stay competitive in a rapidly changing digital landscape.
We recommend a structured approach to implementation:
Creative teams must seize this moment to redefine what’s possible in advertising. The tools are ready – it’s time for bold experimentation!
Retail media ads are advertisements at or close to the point of sale, whether brick-and-mortar stores or e-commerce websites.
As we obsess over the course of the future, are we tossing out the past? Driven to take a fresh, clear-eyed look at this, we decided to field a major study to understand America’s view of the weekly circular.
We think we’ve cracked the code on balancing the unyielding necessity for creative supremacy, but also driving a better, truer way of personalization that yields powerful incremental results
