What is Dynamic Creative Optimization?

Dynamic creative 

• is a method of programmatic advertising in which ad components such as headlines, descriptions, images, CTAs, etc. are changed in real-time according to parameters predefined by the advertiser. Common parameters include the time of day, weather, location, etc.

Dynamic creative optimization (DCO) 

• is a form of dynamic creative that uses machine learning technology to produce personalized experiences for viewers. This automated process leverages the available customer data and other connected data sources plus real-time testing and analytics to select the most effective combination of creative elements for each viewer.

Key Benefits of Dynamic Creative Optimization

There are many benefits of incorporating dynamic creative optimization as part of your digital marketing strategy. Here are the top four.

Personalization We know there is a direct correlation between personalized ads and sales. One study indicates that 80% of consumers are more likely to purchase if a brand provides a customized experience. Your audience likely has specific needs and preferences. With DCO you can automatically deliver the right message for your Millennial audience and the 50-plus crowd in the most effective creative form.

Automation Ad development used to be a manual, time-consuming, and expensive process — especially if you tried to curate ads for each of your audience segments.

Using dynamic creative optimization instead drives cost savings and increases the ROI on every marketing dollar. Once the technology is put in place and parameters are defined, DCO is a fully automated process. Marketers can add data sets, rules, and creative assets to the platform as needed and devote more time to other mission-critical tasks. But, of course, they’ll still need to monitor the performance of campaigns and make adjustments when necessary.

Real-time response Creating ads the old-fashioned way takes a lot of time and resources. DCO allows you to address the needs of your audience starting the moment they visit your site. Tailoring creatives based on real-time data drives more engagement and conversions.

DCO also allows brands to shift their messaging according to changing global or regional conditions. Changing course in real-time can avoid potential reputational damage from showing tone-deaf ads during a sensitive time (i.e., during natural disasters, a local tragedy, etc.).

Improved performance and ROI There’s no more waiting until after the campaign’s over to measure its performance and determine what to do better next time. Instead, DCO provides metrics and makes elemental adjustments to improve performance and conversions in real-time. And when ads are curated specifically for each user, conversion rates soar and increase the ROI of your ad spend. 

Distributions:

Multivariate Analysis:

The exploratory data analysis revealed several important patterns:

• Distribution patterns in word count, CTR, and ER

• Sentiment category distribution across creatives

• CTA button positioning preferences

• Relationships between audio features and engagement metrics

• Correlations between visual elements and click-through rates

These insights informed the feature selection process for model development and provided valuable information about what creative elements most influenced user engagement.

Implemented various types of approaches to predict CTR and ER values:

LSTM Neural Network Architecture:

• Window size of 45 for sequential data processing

• Two separate models for CTR and ER prediction

• Training over 10 epochs with batch optimization

• Architecture included:

  • Input LSTM layer with 8 units (return sequences enabled)

  • Second LSTM layer with 4 units

  • Dense output layer

Model training was performed with MSE loss function and Adam optimizer, with validation data to monitor performance and prevent overfitting. The models showed steady convergence in training and validation metrics.

We also developed an interactive dashboard using Streamlit to make the solution accessible to creative designers and marketing managers. The dashboard offers:

• • Summary of model performance and project information

  • Multiple prediction methods:

    • Video-based prediction

    • Image-based prediction

    • URL-based prediction (directly from creative ad links)

  • Visual feedback on predictions

  • Feature importance visualization

For URL-based predictions, we implemented a complete data pipeline that:

• Takes a given creative ad link

• Uses Selenium to extract assets

• Applies feature extraction steps

• Generates a CSV with all defined features

• Predicts CTR and ER values using the trained models

This dashboard enables non-technical users to leverage the predictive power of the models without understanding the underlying complexity.

Please wait until the site loads the Video, to see the dashboard.