Advanced Television

Survey: DCO spend surge predicted

March 7, 2024

Yahoo has released survey findings showing how advertisers are thinking about dynamic creative optimisation (DCO) for 2024. As rapid advancements in AI evolve and impending cookie deprecation refocuses energy on performance creative, Yahoo surveyed over 300 brand and agency advertisers to understand their current use of DCO.

Powered by AI and machine learning technology, DCO allows advertisers to use real-time insights to build and optimise the performance of their creative, including backgrounds, images, text, and calls to action, while the ad is being served.

The key finding from Yahoo’s survey: Most advertisers (82 per cent) are deeply committed to DCO in 2024. In fact, of that group, one-third (33 per cent) plan to increase spending on DCO, while nearly half (49 per cent) will maintain their investment from 2023.

“With advancements in AI, DCO has the ability to become even more effective and efficient,” said Tony Gemma, Vice President, Head of Global Ad Creative at Yahoo. “The cookieless landscape puts more importance on creative, and our findings show that advertisers recognise the opportunity that DCO has to offer. Those embracing DCO will benefit by boosting campaign engagement with the potential to yield better outcomes.”

Additional findings from the study include:

  • DCO is a critical component to omnichannel campaigns: Ninety-seven per cent of advertisers polled reported using DCO for display campaigns while 90 per cent use it for video and 87 per cent use it for native campaigns. Relatedly, 56 per cent noted that running across multiple channels or formats is important to their DCO strategy.
  • Measurement topic of mind for advertisers: The ability to measure and contextualise campaign results remain top of mind for advertisers. Nearly 60 per cent of advertisers polled agreed that they need better tools to understand the results of their DCO campaigns.

Yahoo says the findings underscore the importance of DCO in omnichannel campaigns given the technology’s ability to personalise content at scale, efficiently utilise resources, and provide real-time optimisation. By ensuring creative consistency and relevance across diverse platforms such as CTV, display, and mobile, DCO offers greater insights and campaign optimisation, and  ensures creative reaches and resonates with audiences across every screen.

Categories: Advertising, Articles, Broadcast, Consumer Behaviour, Markets, Research, Targetted

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