What is Dynamic Creative Optimisation (DCO) and Why It Matters in 2025
🕓 6 mins read
Creative production has changed. Brands can no longer rely on one or two “hero ads” to carry an entire campaign. Audiences expect relevance, personalisation, and speed — and if your creative doesn’t deliver, your budget gets wasted.
That’s where Dynamic Creative Optimisation (DCO) comes in. In this article, I’ll explain what DCO is, why it matters in 2025, and how it helps brands of any size compete on a bigger stage.
What is DCO?
DCO stands for Dynamic Creative Optimisation. In simple terms:
It automatically mixes and matches creative elements (images, copy, CTAs, etc.)
It shows the best-performing version of an ad to the right audience at the right time
It continually optimises based on performance data
Instead of building one static ad, you can run hundreds or even thousands of variations — without manually creating each one.
Why DCO Matters in 2025
Advertising has reached peak complexity:
More channels (social, display, video, TikTok, retail media)
More audiences (segments, lookalikes, regions)
Less time (campaigns move fast, budgets shift quickly)
DCO solves for this by making relevance at scale possible.
Key benefits:
Higher engagement – people respond to ads that feel tailored.
Smarter spend – no wasted budget on irrelevant impressions.
Faster learning – platforms test variations and optimise automatically.
Consistency – every ad remains on-brand, even at high volume.
How DCO Works (in practice)
Think of it as a three-step process:
Content Matrix
A structured sheet of all creative variables (headlines, images, CTAs).
Example: 3 headlines × 3 visuals × 2 CTAs = 18 possible variations.
Assembly
AI-assisted workflows generate all variations quickly.
Assets are checked by our team for quality and brand fit.
Optimisation
Platforms like Meta, Google, or TikTok serve variations in real time.
The system learns which combinations perform best — and doubles down.
Versioning vs DCO
Versioning: Manually creating different ad variations (slow, resource-heavy).
DCO: Automated, data-driven optimisation across thousands of possible versions.
If versioning is a screwdriver, DCO is a power drill. Both work, but one does the job at scale.
DCO vs Programmatic Advertising
A common misconception is that DCO is programmatic. It’s not.
Programmatic advertising: Automates where and when your ads appear.
DCO: Optimises what creative version is shown.
Together, they’re powerful: programmatic ensures efficiency in buying; DCO ensures relevance in creative.
Why Taxonomy is Key
Without structure, DCO fails. Taxonomy (the naming and organisation of assets) is critical because it:
Lets you track exactly which combinations drive results.
Makes optimisation measurable and actionable.
Keeps campaigns manageable even with thousands of variations.
Think of taxonomy as the “map” that keeps your DCO campaign on track.
Who is DCO For?
SMEs – need more from limited budgets → DCO delivers efficiency.
Large brands – need to personalise globally → DCO delivers scale.
In 2025, personalisation is no longer optional. Whether you’re a startup or an enterprise, DCO ensures your creative keeps up with your media strategy.
The Human + AI Equation
At ProductionStudio, we believe the best results come from blending AI automation with human craft. AI makes the scale possible. Human experts ensure every asset is premium, compliant, and on-brand. That balance is what makes personalisation matter.
Conclusion
DCO isn’t just a trend. It’s how modern advertising works. In 2025, brands who embrace scalable personalisation will outperform those who rely on static creative.
