Marketing Updated on Oct 13d2017 Published on Jul 12 2017 8 minute read

Dynamic Creative Optimization is a Game Changer – Achieve 3X Better Results

TL;DR: Dynamic Creative Optimization (DCO) automates manual A/B testing so that you can deliver ideal creatives to the target audience that is most likely to act on your ad. Here, we will cover how the DCO process works, how it improves ROI, what the best practices are, how to use it and how it has been successfully applied by one of our clients.

Traditional A/B testing

Traditionally, A/B testing was a manual process where you had to discover which audience responded to which ad by creating fully formatted ads and then test each of them individually and manually. This process is time-consuming, heavy on manual labor and only allows you to effectively test one variable at a time (creative or target market). 

Dynamic Creative Optimization - Old versus new way
DCO – the future of ads creation

This time-consuming process has been replaced by a new technology which automatically evaluates every creative aspect of an ad and applies them to various audiences through machine learning. With Dynamic Creative Optimization, all you need to do is upload all of your creative assets (headlines, texts, descriptions, and images) and select one broad audience to be placed into a single “pot”.

The perfect balance- dynamic creatives and reaching the right audience

The DCO technology automatically creates variants of ads and matches them with various audience subgroups. Up to 100 such variations may be created, thus out-counting the realistic possibilities of manual A/B testing. 
Different ads combinations for different audiences
Facebook uses part of your budget to feed machine learning; which combination of creatives is efficient for which audience. The bigger the budget you set up the more you teach the algorithm but it can be slow so be patient and do not turn off or edit campaigns in the first 2 days.

This way, ads are tested automatically, making it easy for the right ads to be served to the right peopleAs you can see in the graph below, DCO will be able to determine the best performing combinations of the creatives and audience within 2-3 days, and optimize against your CPC, Website Conversions or Mobile App Installs (see the red-orange line).

Results will show after about 3 days

Since each combination will be matched to its audience, your ads will have bigger reach thanks to a better relevance score and CTR. You shouldn’t look for the best image and copy but only try to improve upon the worst assets to reach even more people.

What would happen if you decided to use only the best of each asset? Your ad would reach only the part of the audience which is suitable for that combination and you could miss a huge part of your audience which would be reached by other combinations.

DCO and Carousel ads

It is also possible to use this function with the Carousel ad format. DCO carousel uses your texts and images to create the best performing combination of cards. All cards will be directed to one destination URL. Facebook will display 10 cards in the live ads.

Running a DCO campaign

Dynamic Creative Optimization has been part of ROI Hunter for a few months and you can use it together with our Image Editor (so you can enjoy DCO even with one image)

To get started with DCO on ROI Hunter:

  • Create a new campaign
  • Define a broad audience
  • Create your mix of creatives
  • Run the campaign
  • Facebook will create combinations of creatives from the mix

Use broad targeting

 

DCO Success Story

ROI Hunter’s client Growww Digital is an agency that has been using ROI Hunter’s platform to help their own clients achieve better ROI on their ad spend. Bónusz Brigád, their client, had an objective to increase newsletter subscriptions. The agency used ROI Hunter’s platform and applied Dynamic Creative Optimization to ensure campaign success and return on investment.

The following ad creatives were selected: 4 images, 3 titles, 3 descriptions. See preview of possible variations below:

Growww DCO examples

  • 70,000 clicks
  • CTR up from 0.47% to 2.17%
  • CPC down from €0.13 to €0.07
  • Newsletter subscription increased by 461% 

Our clients also run DCO for Website Conversions and to get Mobile App Installs and have so far seen up to 3x better results! If you would like to learn more about DCO, download our whitepaper, “Everything You Need to Know About DCO

New Call-to-action

Run your first DCO campaign, and try our platform today!

With Dynamic Creative Optimization, all you need to do is upload all of your creative assets (headlines, texts, descriptions, and images) and select one broad audience to be placed into a single “pot”.
Running a DCO campaign in ROI Hunter saved us time with testing various ad creatives with different targeting by automating the otherwise manual and time consuming process of multivariate testing. As we were able to show the ad creative that was the best fit for each audience segment, we managed to reach great CTR and conversion rate driving relevant traffic to the website and obtain an amazing number of newsletter subscriptions in a short time, with a conversion rate we have rarely seen before.
Zoltán Flekács, Head of Performance, Growww Digital

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