Dynamic Creatives
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More Data, More Intelligence – The Rise Of Dynamic Creatives

As classic retargeting reaches its limits, dynamic creatives are stepping in: Customers who visit a website only to leave it are then lured back with personalized offerings. Sounds familiar but artificial intelligence, machine learning and the Internet of Things are making room for new concepts – and it’s going to be pretty exciting.

You already know the principle behind dynamic creatives: You’re browsing an online store looking for a new winter jacket. You check out a few options but can’t decide on the right one for you, so you leave the site without making a purchase. This is every online store manager’s nightmare, but one which thanks to smarter “dynamic bannering” – as opposed to traditional, somewhat clumsy retargeting – is soon to end. Instead of being followed around the web by adverts for the same winter jacket, dynamic banner advertising can show you related product groups such as winter boots, wooly hats or similar combinations – the principle is clear.

Dynamic Advertising vs. the Power of Habit

Maximizing conversion rate is the number one goal of any advertiser using dynamic advertising. Irrespective of whether it’s the jacket, boots, a wooly hat or an entire winter getaway to Canada for that matter, you, the customer are politely encouraged to make your purchase. And indeed, dynamic creatives have a significantly greater impact than classic retargeting. Studies confirm up to 100% higher click rates with costs that are up to 50% lower. adverserve customer willhaben.at even outperforms these industry benchmarks. Austria’s leading online marketplace has successfully integrated dynamic bannering into its publisher advertising strategy. Some of their campaigns perform as much as 153 percent better compared to conventional campaigns. Dynamic bannering is not a nice-to-have any more but a fundamental part of any digital advertising strategy.

On top of that, conventional retargeting concepts raise the question of whether the desired effect will start to wear off. Experience has shown that while users initially react positively to retargeting, inevitably a creeping blindness begins to set in. From a psychological point of view this is hardly surprising. Any new forms of advertising arouse curiosity and lead to that all-important click. The more frequently a retargeting as is deployed, the greater amount of creative effort is required on the part of the advertiser: Users will invariably respond with “I already know about this, no need to click on it”. As opposed to static retargeting ads, dynamic banners aim to create a positive surprise effect. Intelligent algorithms help advertisers present messages that not only meet user interests but create a completely new user demand.

Maximum Personalization, Maximum Added Value

We in the advertising industry should therefore already be thinking about how we can continue to build on dynamic advertising’s strong start. The technological foundations have been laid. Recommendation engines can intelligently offer appropriate content for dynamic banner adverts based on user interests. Integration with an advertiser’s product data warehouse is sophisticated, and advertisements can use this to access product information and prices dynamically and in real-time. Campaigns can be continuously optimized using A/B testing. Templates for advertisements become more creative and appealing. The criteria used to decide which advertisement is served up become ever more granular. All of this is largely automated and managed programmatically.

Meanwhile the search for the advertising world’s holy grail continues. How can the customer experience be improved to the point where customers no longer perceive advertising as advertising, but rather as an integral part of their overall experience of a brand? When we stop thinking of artificial intelligence, machine learning and the Internet of Things as empty words but instead define the potential opportunities these technologies hold, it should quickly become clear what the future of dynamic advertising looks like. Namely, a universal presence, independent of any one specific advertising format, which provides the greatest possible personalization and real added value for users. Imagine one day I step off the subway with a new Apple TV under my arm and on the way to the exit Netflix greets me with a personalized promo message – then we’ll be on the right path.

The bottom line: Dynamic creatives have effectively rendered traditional retargeting obsolete. Yet this is only the beginning. Artificial intelligence, machine learning and the Internet of Things are opening up new opportunities to connect to users in smarter ways and with more accurate messages – all this running across all advertising channels and in flexible formats.

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