The Role of Dynamic Creative

Personalisation is not simply a trend in today’s digital economy, it is a demand and a necessity from consumers who are inundated with marketing messages. The more relevant experiences that we can create across digital media with consumer centricity at the heart, the better the campaigns will perform. With that in mind, the core role of dynamic creative is to deliver real-time, highly relevant experiences across digital media channels through the mid to lower end of the funnel in the consumer journey lifecycle. Dynamic creative improves the effectiveness of prospecting, acquisition and when used smartly, can build brand loyalty with an audience. Dynamic Creative plays a crucial role in Performance Marketing driving website traffic, conversions, sales and ROI. From a brand building perspective, smart dynamic creative can be used to nurture and connect consumers with content-leveraging audience data to build loyalty and improve customer retention. There is the fine line between relevancy and frequency. As a consumer, there is nothing more frustrating than being stalked by a brand with products/services for weeks or even months repeatedly after visiting their website/app with dynamic formats that are no longer relevant to the consumer. This is where digital advertising responsibility and care of duty comes to the forefront. Striking the fine balance between lookback/time lag, relevancy and frequency is when dynamic creative plays a non-intrusive, highly relevant role that nurtures a consumer rather than bombards them into submission and frustration.

Dynamic Creative Options

There are two common solutions from a digital media perspective for dynamic creative: dynamic creative optimisation and creative management platforms. Both are similar in that they aim to personalise for a target audience to increase relevancy, but dynamic creative optimisation (DCO) is a form of programmatic advertising that is 100% automated allowing creative to be optimised using data and technology in real time. Creative Management Platforms, on the other hand, is a computer-aided tool so creative staff can prebuild lots of ads for specific segments. When we refer to Dynamic Creative here, we are referring to the former solution, dynamic creative optimisation.

Data, creative and automation

Brands that are doing this well, are using Dynamic Creative Platforms that integrate data with business rules designed with specific triggers and criteria to power an automated delivery of dynamic creative across media channels to consumers. These data signals and criteria can include:

  • Channel
  • Weather
  • Device
  • Products viewed / cart abandoned
  • Engagement / consumption
  • Time
  • Location
  • Frequency of purchase
  • Content consumption
  • Customer type (Loyalty members, business, personal, guest)
  • Customer value
  • Product / Service margin

Dynamic creative can drive more value from marketing spend by setting up business rules that can omit lower value and lower ROI products from your advertising. Integrating product inventory feeds into your DCO platform with these smarts, enables advertisers to strategically segment by product margin to drive increased value compared to static creative solutions. The next level up from feed integration is overlaying audiences, which adds another layer of capability to dynamic creative. Brands who have invested in consumer data platforms are able to segment their customers from their database and create niche campaigns targeted to priority audiences. For example, you may want to focus only on customers who have higher propensity to purchase based on what you know about their purchase frequency captured in the database. Platforms like Adobe Audience Manager and Salesforce Krux integrate with DCO platforms to strategically segment audiences to which they want to deliver one-to-one experiences, build loyalty with and target for repeat purchases, tailoring content in creative. Integrating weather data into dynamic creative can further fuel the relevance for a consumer and tap into the triggers that push consumers into a category. For example, travel brands create business rules in their dynamic creative optimisation (DCO)platform that trigger ads on weekends when the weather is cold or when it is raining, as this can motivate people into holiday-research mode. This approach can also be geotargeted, enabling city name variables into your dynamic templates based on the users’ location.

Dynamic creative across channels

Dynamic creative transcends across a number of channels including social, search, display, video and online radio. As well as using a dynamic creative platform, the individual platforms also offer bespoke solutions within their platforms to increase relevance and personalise creative for better performance. For example, leveraging Facebook custom audiences you can personalise creative based on the users’ past behaviour and interactions with the brand. Dynamic product ads, carousel and collection ad formats allow brands to integrate their product inventory into Facebook/Instagram to power retargeting and prospecting strategies with dynamic creative. Users who browse specific products or services onsite can be retargeted with the specific product/service (if they haven’t purchased) or show them similar categories of products that are relevant to the products or services they have engaged with. Facebook publishes a wealth of case studies that highlight the impact dynamic product ads have for advertisers from an array of industries. Generally speaking, dynamic ads typically have a five- to ten-times increase in performance.

Air France used Facebook dynamic ads for travel to power their online ticket bookings, increasing return on advertising spend (ROAS) compared to previous formats for other direct response campaigns (whilst reaching 2 million people globally). They achieved:

  • 57% lower cost per booking
  • 12-times increase in conversion rate
  • 11-times increase in ROAS.

More dynamic ads success stories for APAC here.  Even Search embraces dynamic creative with product listing ads using the same logic of product feed integration and user’s onsite behaviour and interaction. In terms of programmatic, dynamic creative solutions are customising ads across the mass of available inventory across ad networks to provide more relevant experiences to users who have interacted with brands and are still in the market to buy specific products. Below are some success stories where dynamic creative running programmatically via demand-side platforms and DCO partners have impacted various brands across an array of industries:

  • A Cypriot Airline client called Cobalt moved from static to dynamic and saw a three-times uplift by moving from static to dynamic. ¹
  • A travel client moved from standard video to dynamic video and saw an uplift in engagement rates from 2% to 6%. ¹
  • A retail client moved from static banners to dynamic creative and the click-through rate (CTR) increased from 0.12% to 0.19%. Post-click conversion rate increased from 0.72% to 2.25%. ¹
  • An auto client implemented a dynamic creative prospecting strategy and increased CTR by 22%. ²

DoubleClick has published several case studies that showcase the success of dynamic creative from a conversion driver and from a consumer prospecting perspective

  • Audi’s dynamic creative ads allowed them to promote highly customisable car through personalised ad messaging using a creative studio, DBM and DCM to increase prospecting efficiencies by a factor of four, with dynamic creative ads double the efficiency of their static ads. ³
  • Hotel Urbano successfully executed a dynamic remarketing strategy increasing ROAS by 38% over static remarketing.
  • increased conversion rates by 28% and decreased cost-per-acquisition by 23% over static remarketing.

Sources: ¹Crimtan; ²Columbus, a Merkle company; ³Audi; Hotel Urbano;

The Role Of Dynamic Creative

With the tech and data foundations set, channel clout and customisable capabilities established, it is clear that dynamic creative has multiple roles in the marketing strategy. Moving away from a one-size-fits-all creative approach to a dynamic solution is creating relevancy for the individual and increasing the likelihood of resonating with the user and achieving marketing objectives.
To summarise the key role of dynamic creative:

  • Prospecting

In terms of prospecting, Dynamic Creative improves the audience creative relevance by mapping granular segments and creating business rules to tailor the creative to individual prospecting segments composed of different data points. The data points include demography, location, proximity, similar purchases, time of day, weather, existing first-party segments, context and more. Having a Dynamic Creative approach in prospecting can improve user engagement and click-through rates increasing your audience pools and fuelling the sales funnel.

  • ROI and Sales

From a direct response perspective, dynamic creative is seen as a revenue, ROI and sales driving component of performance marketing that has evolved website retargeting to the next level over static creative. The ability to capture granular user browsing and interaction data down to individual product means markers are able to set up dynamic templates that place that exact product into the ad creative increasing relevance for the in-market user who hasn’t purchased. The platforms are also powered with machine learning bid strategies meaning marketers can set up campaigns to optimise to a performance outcome which can include, target CPA, ROI, Sales and ROAS. The platforms algorithms then take over and optimise dynamic creative campaigns accordingly, improving ROI and Sales.

  • Loyalty and Lifetime Value

Dynamic creative plays a key role in loyalty and retention strategies driving repeat purchases and delivering tailored content to existing customers. Retaining high value customers who purchase from brands consistently is a key goal for most brands and dynamic creative platforms can automate these strategies across multiple digital channels at scale ensuring consumers are rewarded with tailored content, news, updates, benefits, personalised offers, upcoming sales and more which are all crucial to retention, building loyalty with consumers and adding increased value to businesses’ marketing.

Read more from the IAB’s Role of Creative in Digital Advertising Effectiveness Playbook here:

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