Should I use dynamic creative optimization

ROI insights

For Australian SMEs focused on lead generation, the question of whether to invest in dynamic creative optimisation (DCO) is a smart one to ask. Simply put, DCO automatically swaps out elements of your ads – headlines, images, calls to action – to show different versions to different people. It’s about delivering more relevant ad experiences, and ultimately, getting more leads for your marketing spend.

The short answer is: potentially, yes. But it’s not a ‘set and forget’ solution, and it’s not right for every business. Here’s what we’re seeing work well with our clients.

  • You need volume. DCO thrives on data. To truly see what resonates, you need a significant number of impressions – think thousands per week, per campaign. If you’re running very targeted, low-volume campaigns, the data won’t be reliable enough to make meaningful changes.
  • Segmentation is key. DCO isn’t about random variations. It’s about showing the *right* variation to the *right* person. This means having clearly defined audience segments based on demographics, interests, or even website behaviour. The more you know about your potential leads, the better DCO will perform.
  • Focus on high-impact elements. Don’t try to optimise everything at once. Start with the elements that have the biggest impact on click-through rates and conversions – usually headlines and images. Testing multiple calls to action is also a good starting point.
  • It complements, doesn’t replace, strategy. DCO is a tactic, not a strategy. You still need a solid understanding of your target audience, a compelling value proposition, and a well-defined lead generation funnel. DCO simply helps you refine your messaging and creative to improve performance.

We’re seeing DCO become increasingly important as consumer attention spans shorten and ad platforms become more competitive. While the initial setup requires some investment in time and potentially technology, the potential return on investment – in the form of increased lead volume and reduced cost per lead – can be substantial. Looking ahead, as privacy regulations evolve, the ability to personalise experiences without relying solely on third-party data will become even more valuable, making DCO a crucial tool for lead generation in 2026 and beyond.

If you’re currently running digital lead generation campaigns and are spending over $5,000 per month, we recommend exploring DCO. The next step is to audit your existing campaigns and identify opportunities for testing different creative elements. A small pilot program can quickly demonstrate the potential benefits for your business.

The bottom line

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