Unlocking the Power of Dynamic Video Advertising

In an era of information overload, creating more ads isn’t the solution—creating better, more relevant, and engaging ones is. Consumers expect personalized, high-quality content that captures their attention and resonates with their needs. Instead of flooding platforms with generic ads, brands should focus on smart, data-driven creativity that tailors’ messages to the right audience at the right time. Video DCO (Dynamic Creative Optimization) enables this by combining dynamic elements with strategic storytelling, ensuring that each impression counts and contributes to meaningful engagement rather than just adding to the noise. 

Video Advertising: Growing but Fragmented 

Video advertising remains the fastest-growing ad format in digital marketing, with global spending projected to rise steadily through 2029 (Statista). This growth is driven by consumers’ increasing appetite for video content on platforms like YouTube, TikTok, Instagram, and Connected TV (CTV). However, this surge has also created a fragmented ecosystem, where marketers must navigate diverse formats, technical requirements, and audience behaviors. 

For example, TikTok favors short, vertical videos designed for quick engagement, while CTV demands longer, immersive storytelling. Each platform requires tailored creative approaches, making it harder to deliver consistent messaging at scale. This complexity calls for smarter tools, and Video DCO is one such technology that helps marketers streamline production while maintaining relevance. 

The Challenge of Fragmentation 

The growing diversity of video platforms presents both opportunities and challenges. According to IAB, digital video ad spend is increasing nearly 80% faster than overall media budgets, reflecting its importance in modern strategies. But with this growth comes a key issue: fragmentation. 

Marketers now need to adapt their creative assets to an overwhelming variety of formats—vertical videos for TikTok, skippable pre-rolls on YouTube, autoplay ads on social feeds, and cinematic experiences on CTV. Each platform has unique requirements and best practices, making it difficult to scale campaigns effectively without compromising quality or relevance. 

This is where Video DCO comes into play, offering a way to dynamically adapt creative assets to different platforms, audiences, and contexts. 

What is Video DCO? 

At its core, Video DCO uses dynamic templates to create personalized video ads tailored to specific audience segments and contexts. By leveraging data from feeds or programmatic platforms, the technology assembles and serves the most relevant combination of visuals, copy, and calls-to-action—either in real-time or as pre-versioned assets. 

For instance, a retailer could use Video DCO to promote winter jackets to users in colder regions while showcasing summer apparel to those in warmer climates on top of any messages tailored to audience segments – all within the same campaign. Similarly, a financial services brand could tailor messaging based on life stages, such as mortgages for young professionals or retirement planning for older audiences, while also adjusting for regional nuances. 

Why Video DCO Matters 

As video advertising becomes more fragmented, Video DCO offers a practical way to manage complexity while unlocking new opportunities. Here’s why it’s worth considering: 

1. Relevance Drives Results: Personalization is no longer a nice-to-have; it’s expected. Video DCO ensures your messaging resonates by delivering targeted content that speaks directly to individual viewers. 
2. Scalability Without Sacrificing Quality: Traditional video production struggles to keep up with the demand for endless variations across platforms and audiences. Video DCO solves this by enabling marketers to generate thousands of creative versions from a single dynamic template, ensuring consistency and efficiency. 
3. Optimized Media Spend: By integrating with programmatic platforms or providing enough asset variations for rotation, Video DCO delivers the right creative to the right person at the right time. Even on platforms like YouTube or Meta, where real-time optimization isn’t always possible, pre-versioned assets ensure alignment with audience needs. 

Limitations to Consider 

While Video DCO is a powerful tool, its use cases and functionality can vary depending on the brand, platform, and provider. For example: 

• Programmatic Strengths: DCO works best for programmatic video buys and Meta campaigns, where integrations allow for real-time adjustments or smart toggling of creatives. 

• Platform Gaps: On platforms like YouTube and TikTok, DCO is often limited to delivering pre-versioned assets rather than enabling full dynamic optimization. 

• Provider Differences: Not all DCO platforms offer the same features. Some excel in creative production, while others focus on ad-serving integrations or multi-channel capabilities. 

Understanding these nuances is key to choosing the right approach for your brand. 

How to Get Started with Video DCO 

If you’re ready to explore Video DCO, here’s how to get started: 

1. Define Your Goals: Clarify what success looks like—whether it’s higher engagement, better ROI, or improved operational efficiency. 
2. Leverage Audience Data or Insights: Use first-party and third-party data to segment your audience. Alternatively, consider insights related to context, location, or category trends. 
3. Plan Your Assets: Decide whether to create bespoke video content or repurpose existing assets. Either way, collaboration between media and creative teams is critical to maximizing DCO’s potential. 
4. Choose the Right Platform: Evaluate DCO platforms based on your needs. Key considerations include multi-channel support, creative production capabilities, self-service vs. managed service options, and integrations with DSPs and ad servers. 

Final Thoughts 

Video DCO offers a way to tackle the growing complexity of video advertising while meeting consumer expectations for personalized, relevant content. Whether you’re navigating TikTok, YouTube, or CTV, DCO can help you scale creative production, optimize media spend, and improve campaign performance. 

That said, it’s not a one-size-fits-all solution. Success depends on aligning your goals, assets, and platform choice with the specific needs of your brand and audience. 

If you’d like to learn more about DCO or discuss how it could work for your business, feel free to reach out to your local specialist: 

Denmark: Anders Belling, Director of Strategy, at [email protected]  

Finland: Marcos Gutierrez, Senior Consultant, at [email protected]  

Sweden: Joakim Östling, Creative Technologist, at [email protected]  

Norway: Markus H. Sælen, Addressable Strategist, at [email protected]