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Dynamic Creative Optimization (DCO): Best Practices and Trends

How does dynamic creative optimization (DCO) work, and why should marketers consider utilizing it?

By Josch Chodakowsky, Joanna Fragopoulos    June 11, 2026    

Dynamic creative optimization (DCO) enables marketers to create more personalized ad variations in real time, using consumer data to boost engagement and preference. The DCO marketing technology (martech) platform reviews the data and makes decisions quickly, which allows marketers to iterate quickly.

As Epsilon wrote in an article, "The best DCO platforms go beyond simple image or headline swaps. They continuously adjust creative and messaging based on where each person is in their journey — whether they're still researching or ready to buy."

Therran Oliphant, SVP of ad tech and agency partnerships at Flashtalking by Mediaocean, explained that for DCO to be effective, however, marketers need to leverage orchestration and relevance, explaining, "Connecting elements that are relevant to the consumer is paramount for performance. Fewer wasted impressions and better relationships with consumers can be born out of relevance. Testing for incrementality is easier as well. Changing a trigger to pull through a different creative element is much easier than audience holdouts, or match market testing."

Tripadvisor company Viator harnesses DCO to help with "messaging, imagery, pricing, ratings, reviews, and product names automatically updating based on user data. The same ad template might showcase different destinations, adapt calls to action ('book now' versus 'explore more'), and highlight features like 'Likely to Sell Out' or 'Free Cancellation' depending on where the user is in the booking funnel. This modular approach allows Viator to deliver personalized, relevant ads at scale," as explained in the ANA event recap.

Carmela Luzzi, senior director of brand at Viator, stated, "I think we're moving toward a model where everyone becomes more of an art director than a designer. I still need someone with a creative eye to build basic templates and someone who can direct video content. Yes, AI [artificial intelligence] can help templatize the work, but it still takes a human to decide what the first few frames of a 30-second ad should look like. What's the hook? What's the message? What makes it memorable? AI isn't there yet, so right now we still need creatives who can think that way."

Luzzi also noted, "I tell the team, "I don't want you spending hours resizing 16 versions of the same ad — I want you to focus on the next great idea." We use AI to handle things like generating a 300 by 250 ad size across 20 variants. That frees up the team to be more creative and do the things only humans can do, like spotting cultural trends or thinking of a fresh concept."

Below are best practices and examples on how to best leverage DCO.

Best Practices

Below are the latest resources on trends and best practices relating to dynamic creative optimization.

Dynamic Creative Optimization: The Ultimate Guide (Improvado, May 2026). This guide will provide a comprehensive look at DCO advertising. It explores how it works, its benefits, the best platforms, and advanced strategies to help you dominate your market.

What is Dynamic Creative Optimization? A Marketer's Guide (Epsilon, December 2025). Brands spend a lot of time, money and resources trying to figure out who to talk to and how to reach them. But if you only have a handful of creative versions to deliver that message to a consumer, what's the point? This is where dynamic creative optimization (DCO) comes in, allowing marketers to personalize ad creative to individual shoppers. This article looks at what dynamic creative optimization is, how it works, and what technology you need to make it happen.

Creative Optimization Is All About Orchestration and Relevance (ANA, January 2025). According to the Forrester Wave: Creative Advertising Technologies Q4, 2024 report, "Creative AdTech was once defined and confined by dynamic creative optimization (DCO), which promises personalization but involves complicated planning and tons of creative. DCO grew into omnichannel platforms whose gaps were filled by creative automation and intelligence tools. Now creative AdTech vendors consolidate various solutions for creative automation, personalization, and intelligence into holistic platforms."

Dynamic Creative Optimization: Opportunities And Challenges (Forbes, September 2024). Advertising is a perpetual loop of collecting, parsing, and responding to a firehose of data, and optimizing that loop is the name of the game. This is where dynamic creative optimization (DCO), an advanced technology that uses real-time data to customize ad content for individual users, can help. DCO helps ensure that ads are not just seen, but engaged with, bringing a 21st-century solution to an age-old problem. It's no magic pill, though. This article discusses the opportunities and challenges present in this technology.

The Evolution of DCO and Performance Marketing: Embracing AI for Hyper-Personalized Creative Content (LinkedIn, May 2024). Dynamic Creative Optimization (DCO) and performance marketing have come a long way since their inception. As technology advances and consumer behavior evolve, marketers must adapt to stay ahead of the curve. The integration of artificial intelligence (AI) and machine learning (ML) is revolutionizing the way brands create, deliver, and optimize content at scale. However, the most significant disruption in this space is the decoupling of content production from traditional production agencies, enabled by cutting-edge AI-powered platforms. This shift is paving the way for a new model of hyper-dynamic, personalized content creation that reconnects creative, content strategy, and media. This article explores the evolution of DCO and performance marketing, discusses current limitations, and delves into the potential of next-generation AI-powered platforms to deliver unparalleled results.

Dynamic Creative Optimization: Enhancing Ad Performance with AI Algorithms (Medium, March 2024). In the ever-evolving landscape of digital advertising, businesses are constantly seeking innovative ways to capture the attention of their target audience and drive conversions. One powerful tool that has emerged in recent years is Dynamic Creative Optimization (DCO), a technique that leverages artificial intelligence (AI) algorithms to tailor ad content in real-time based on user behavior and preferences. This comprehensive guide delves deep into the world of DCO, exploring its mechanisms, benefits, and best practices for maximizing ad performance. Also from Medium, see Best AI Ad Generator Solutions for Dynamic Ads.

Examples

Below are examples on leveraging dynamic creative optimization.

AI and The Future of Creative: Friend or Foe? (ANA, March 2025). Carmela Luzzi, senior director of brand at Viator, explored how the brand leverages creative AI and dynamic creative optimization to scale personalized content, improve ad performance, and balance efficiency with creativity in an evolving digital landscape.

Using Weather Patterns and Iftar Times to Guide Dynamic Creative Optimization (ANA, September 2024). Ice cream brand and Unilever subsidiary Algida targeted Muslim shoppers with creative that was adjusted based on the temperature and the timing of the Ramadan periods of fast-breaking.

How Kimberly-Clark Built a Dynamic Content Optimization Strategy with Real-Time Data (ANA, September 2024). Kimberly-Clark, home to household brands like Kleenex, Cottonelle, and Scott, shares how it dynamically delivers moment-based messaging personalized to the consumer while preserving consumer privacy. See also: How Kleenex Used Data to Capitalize on Peak Sales Periods.

Pepsodent Helps Fight Tooth Sensitivity During Ramadan (ANA, August 2025). Pepsodent partnered with AnyMind Group and POKKT to launch a mobile-first campaign during Ramadan, featuring an AR gamification filter that visualized "Ngilu" (tooth pain) moments. The brand deployed dynamic creative optimization (DCO) to tailor ads based on viewing time and audience segment. Pepsodent also promoted shareable before-and-after product visuals.

Vaseline Uses UV Index Billboards to Promote New Sunscreen (ANA, September 2024). Unilever Vietnam used a digital out-of-home campaign that demonstrated the local UV index to develop a market for Vaseline sunblock body lotion.

Last updated June 2026.