Graphic image showing people thinking about different items. (Rendered in a flat-colour style)

Dynamic Ads: The Netflixization of Online Marketing

by Daniel Skoda, Managing Partner at adlicious

With platforms such as Netflix or Spotify, we are now used to being served content that is individually tailored to our preferences. Especially with the mass of content that we encounter on all platforms, such a recommendation can massively influence our consumption decision. But why are entertainment companies giving their customers this feature, while advertisers still rarely resort to personalization in the fight for the right target group?

No personalization - wasted potential

Personalized content is used in just 40 percent of all online campaigns. Although dynamic ads not only allow you to run more effective campaigns, but also save time and money when creating advertising material.

More than three quarters of all users have already bought a product as a result of personalized advertising

Yet many marketers miss out on this potential. It cannot be due to a general rejection of personalization by users. Not only are features such as Spotify's “Your Mix of the Week” popular, but the corresponding data usage also seems to be no problem. Only every eighth user generally rejects the use of cookies for tracking and almost every second user consciously decides to release data in order to receive personalized advertising. However, in order for this acceptance to continue, it must be clearly and transparently communicated where the data comes from and how it is used.

Important for acceptance: Clear communication of data usage

Another explanatory approach is the alleged effort associated with personalization. But what does the cost-benefit ratio really look like?

Dynamic ads: How does it work?

With dynamic advertising tools, personalization can be implemented efficiently and in a resource-saving manner. The basis is a banner in which various dynamic areas are defined, such as prices, product names or images. This data is stored in a feed, which the banner accesses as needed and then shows the user products that match their interests. Data is an important success factor for dynamic campaigns. Reasonable target group segmentation can only be carried out with an appropriate basis. Although a superficial division into man or woman would also be considered a personalized campaign, in many cases this would not be sufficient for good results. The effort required for manual segmentation could be another reason why personalized campaigns are not yet standard. But this effort can pay off: wastage losses are reduced to a minimum.

Minimize wastage through dynamic ads
Dynamic Prospecting - Personalized approach to new customers

In contrast to dynamic retargeting, dynamic prospecting is a form of ad that has hardly been used so far, which is primarily due to the complex set-up of the campaign. Many companies shy away from the hassle of manual segmentation. Although this would be worthwhile. Let's stick with the Netflix analogy, dynamic retargeting is comparable with the “continue watching with profile” feature and dynamic prospecting with the “You might like that” recommendations.

Dynamic Prospecting: “They were looking for this content. You might like the following”

In concrete terms, this means the following: A sporting goods manufacturer is running a dynamic prospecting campaign. Based on user data from the solution provider, a runner will in this case be shown running shoes and corresponding running tights, while an active soccer player will be shown soccer shoes and shin pads.

In this way, users receive advertising with added value and the advertiser precisely addresses new customers for whom he has the right products. It's a win-win situation. Flexibility is another advantage. The simple management of product range changes such as new products, sold out items or changed prices in the data feed makes dynamic prospecting an ideal form of advertising for long-term “always-on” campaigns.


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