Dynamic creative optimizaton explained

What is dynamic creative optimization (DCO)?

Dynamic creative optimization is the process that lets your creative content adapt automatically to each viewer in real-time based on user data. Instead of showing everyone the same image, static ad, or animation, DCO swaps visuals, copy, or design elements based on factors like audience behavior, location, the time of day, or even device, with the help of certain tools.

Here’s a great example of dynamic creative optimization. Think of a banner ad for a local coffee shop: a morning viewer sees a steaming cup with “Start your day right”, while someone scrolling in the afternoon sees a cozy latte with “Relax after work”. Mind you, this is all coming from the same base creative. DCO turns one piece of content into multiple, personalized experiences, making your campaigns smart, contextual, more relevant, and ultimately, more effective.

How dynamic creative optimization works?

Dynamic creative optimization is when you combine a flexible creative template with real-time data, which allows your content to adapt automatically for each viewer. One base video can transform on the go, swapping text, visuals, or scenes depending on who’s watching, where, and when. We’ve seen it in action, and dynamic videos are the way of the future. 

To pull it off, you need the right combination of automated tools for creation, data, and delivery. Here’s the process in action:

• Create your template - You start with a flexible video template. Scenes, text overlays, graphics, colors, call to actions, and even animations are placeholders, ready to shift depending on the audience, and are all adjustable. Tools like After Effects can help with this first step. Think of the template as your foundation that DCO will later transform to hit different audiences.
• Connect your data - This is the part where you link your template to target audience insights that include behavior, demographics, location, device type, past interactions, and even weather conditions. You feed the template with data through your chosen tools (like Google DV360, Facebook/Meta Ads Manager, or Segment). This data is basically the brain behind the creative production, as it determines which elements should change for each individual viewer.
• Create ad variations from a single piece of creative - Now that the template is connected to your data, to put DCO into action and experience the magic of automated video versioning, you’ll need a tool like Plainly, but more on that in the tool section. However, you do need to know that each version is personalized for a specific audience segment, so you can see the results of implementing a DCO technique in your workflow.
• Distribute your creative - Finally, when the system is put into place, it delivers the right variation to the right viewer at the right time across multiple channels. You can also set it up to track performance in real time, so the system learns and brings in valuable data you can later use for optimization and even better results.

Benefits of dynamic creative optimization

DCO is a true game-changer for dynamic video ads’ performance and scaling. True advertisers know this. When your content is adaptable in real time, the rewards go beyond vanity metrics. So here’s why it matters, especially for digital advertising:

Hyper-personalization

One template can transform into hundreds or thousands of versions, each tailored to a specific audience segment. Instead of guessing what works, every viewer sees a version designed for them. By adapting colors, products, or messaging to match viewers’ preferences, you increase the likelihood they’ll pay attention and engage with your video ad.

Better engagement and viewer experience

Dynamic videos keep content relevant and interesting, which can translate into higher watch times, interaction, and click-through rates. If you deliver more relevant content, linked to their watch preferences, the engagement will skyrocket. This is the magic of contextual targeting.

Time and resource efficiency

Instead of manually creating dozens of static videos, when done right, DCO can automate versioning and help create thousands of ads. Automation gives creative teams a chance to focus on storytelling instead of ongoing production tasks. Platforms like Plainly can help generate hundreds of personalized videos from a single template in minutes, saving both time and manpower.

Data-driven optimization

Every impression and interaction feeds back into the system, helping videos evolve in real time. By continuously analyzing what viewers respond to through your chosen tools, DCO can adjust creative elements that perform best, which improves results over time. Metrics to look out for: view completion, clicks, engagement, and conversion rates.

Higher ROI and campaign performance

When you serve the most relevant creative to each viewer, DCO drives better conversions, more clicks, and stronger brand recall. Personalized content increases the chance of a viewer taking action. Each impression is more effective than generic ads, so every marketing dollar you invest counts.

When to use dynamic creative optimization

After looking at the benefits, DCO sounds pretty good right now, huh? Well, let’s talk about when you can use it. Here are the situations where it can make a real impact:

1. Personalizing e-commerce campaigns - When you customize ad content, you show each shopper the exact product match based on their purchase and browsing history. Example: A winter jacket ad won’t land with someone who lives in Miami. They will see the summer collection instead.

2. Promoting travel and hospitality offers - Your future client should see their dream destination based on searches and preferences, or the season. Beach lovers get to see tropical getaways, while mountain types see ski packages and postcard mountain ranges. Ad variations play a huge role in the travel and hospitality industries.

3. Boosting engagement for streaming services - This is where your ad campaign swaps thumbnails, recommends shows, and highlights scenes based on your viewers’ preferences and likes. If you keep them watching, they will remain engaged, which means a higher ROI.

4. Driving conversion rates in gaming - If you’re in gaming, you can customize the messaging in your ad content in real-time to the player’s level of experience. If the player is new, highly active, or returning, you show special events and give rewards that match their play style. Personalized ads based on real-time data are the way to go!

5. Tailoring messaging for finance and education - The trick here is to guide beginners and challenge experts. Whether it’s finance or education, you use these ads to show course recommendations or finance tips that fit the journey of each user.

Tools and platforms that support DCO

Now it’s time to look under the DCO hood, because behind every adaptive, intelligent video format, there’s a stack of tools and systems working together. These are the tools that help collect data, analyze patterns, and make real-time creative decisions - in short, DCO tech.

Let’s look at what kind of tools you need to set up the full process, and then we’ll show some tools you should look at:

1. Creative automation platforms – Tools like Plainly take a single video template and generate multiple variations automatically. You design your template once, and the platform handles swapping text, visuals, scenes, or colors based on user data, swapping ad elements, and creating multiple ads. It’s the foundation of DCO for video ads. Up to 91% of businesses use video as a marketing tool nowadays, so having a strong foundation for any use case matters. Ask any marketer you know.
2. Ad servers & delivery platforms – Platforms like Google Marketing Platform, Meta Ads Manager, or DV360 deliver multiple versions of your ad's creative to different audience segments. With them, you can track performance, feed interaction data back into the system, and allow DCO platforms to adapt the content in real time.
3. Data management platforms (DMPs) & Customer data platforms (CDPs) – Tools like Segment, Treasure Data, or Salesforce CDP are made to collect, organize, and segment first-party and third-party audience data. These platforms give you the kind of audience insights the system needs to personalize your videos at scale and serve as data sources.
4. Analytics, AI, and machine learning tools – Platforms like Google Analytics 4, Mixpanel, or custom ML models can analyze patterns, predict which creative combinations give the best results, and feed recommendations back into your DCO platform. This is the part where your system learns from audience interactions.
5. Integration layers/APIs – Lastly, you need to create connections between your creative, data, and ad platforms, and this is where APIs come in. They let your tools talk to each other in real time so that a user’s action on one platform can influence the creative they see next instantly.
   
   

Here’s the logic behind all this. Each tool handles a specific role in the system. Some handle creation, some delivery, some data, and some learning. Combine them together, and you get a self-learning ecosystem: 

user data flows in → insights are analyzed → creative adapts → results are measured

Here’s a real use case in action: Imagine a sportswear brand. A DCO template lives in Plainly,  behavioral and demographic data flows in from a CDP, engagement is tracked with every video version, and ad servers distribute the best-performing variations to each individual user. The system constantly optimizes automatically, which in turn gives every viewer a personalized, compelling experience that converts.

Now that we’ve learned all this, let’s show you our handpicked tools we think you should look into.

Plainly

Plainly is where your DCO journey starts. It takes a single video template and generates hundreds of personalized versions automatically. Swap visuals, text, animations, or scenes based on audience data. If your goal is to save time while keeping your creative hyper-relevant (as it should be), Plainly is the foundation for automating content creation.

Google DV360

It’s simple: Google DV360 distributes your ad creative to the right audiences and tracks how each version performs. It’s a powerhouse for programmatic campaigns, that helps you serve dynamic ads to each user across websites, apps, and platforms while feeding performance data back into your DCO system.

Segment

Segment is used to collect, organize, and segment your audience data—everything from demographics to behavior patterns. This is basically the brain behind your personalization. And you should know that the richer the data, the smarter your creative swaps.

Google Analytics 4

GA4 can track key video metrics like plays, watch percentage, engagement, and clicks on CTAs. This gives you a clear view of what resonates with your audience. It can track these video types:

• Embedded website videos (HTML5 players, MP4s hosted on your website)
• YouTube videos embedded on your website (with proper event tagging)
• Dynamic video ads like those created with Plainly, as long as the player can fire tracking events to GA4

If you link your dynamic videos to GA4 through event tracking, your GA4 can thus turn every impression into actionable insights. This way, you feed data back into your DCO system and continuously optimize your videos. If you go further and add Google Optimize to the mix, you can further optimize by adding multivariate testing to the mix.

Zapier

Zapier serves as a connection between your creative, data, and ad tools. Actions in one platform can instantly trigger updates in the other, like swapping a scene when a user hits a specific milestone. Smooth integrations like this one make DCO work seamlessly across your marketing stack.

Ready to put dynamic creative optimization into action?

At the end, we have to ask: Are you ready to see your videos come alive? The dynamic creative optimization process isn’t just a tech trend everyone should follow, but a solid system that can transform your business. With the right template, real-time data, and most importantly, the right tools, your content stops being static and starts performing to give real results. 

So, to put it in action, you should start where it counts most - at the foundation. Imagine one video template automatically reinventing itself for thousands of viewers, each version feeling hand-crafted just for them. Automation at its finest. You set it up once, and it produces hundreds of thousands in no time. So your first step should be to book a demo with Plainly and let your content start performing like never before!