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What is Facebook Dynamic Creative Optimization?

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Facebook’s core feature to help determine the best creative is Dynamic Creative Optimization (DCO), which automatically tests multiple variations of a single ad.

You should always be A|B Testing your creative to optimize on spend. Dynamic Creative Optimization selects the best elements to put into an ad based on audience segments to deliver in real-time the right ad, right copy, right audience, right time, right language, the right placement, and right device. Further, DCO offers both creative delivery at scale as well as testing with endless experimentation. All without human intervention are required to drive continuous testing and optimization. It’s also possible to enable language testing through DCO to deliver the most efficient language based on performance.

By running DCO, Facebook has control over which creative is served. Also, it can more quickly optimize a high volume of creative combinations versus just running many ads per ad set.

Before the introduction of this feature, you had to create fully formed ads individually and test them manually to find the most effective ad creative and the best ad-to-audience fit. Dynamic Creative automatically randomizes ad variations for you, making it easy to show the right ads to people.

Facebook lets you use up to 30 creative assets, including five title/headline variations, 10 images or 10 videos, five text variations, five descriptions, and five CTA button variations. Currently, you can’t mix image and video creatives.

dynamic creative optimization


Benefits – Dynamic Creative Optimization makes it easy to:


  • Find high-performing combinations of creative components for your campaign and drive performance
  • Launch ads with multiple combinations of creative assets quickly
  • Deliver the best creative for each campaign audience and ad placement


When to Use Dynamic Creative Optimization

Since Dynamic Creative only works with Traffic, Conversions, and App Installs campaigns, it’s best to use it for remarketing campaigns in the middle and the bottom of your sales funnel. For instance, if your eCommerce business sells physical products, you could create a campaign offering a price incentive (a discount, for example) that features product-based ads.

Using DCOe feature, you could test multiple product images, including ones in a lifestyle environment, alongside multiple copy variations and headlines. Shop Now would be the most relevant CTA so you wouldn’t need to test multiple CTAs.

Another use case for Dynamic Creative is at the bottom of your sales funnel. Remarket to people who have visited your website. Whether you’re selling products or services, you can use Dynamic Creative to test multiple testimonial copy variations, as well as different product/service images. Using testimonial-based ad copy at this stage of the sales funnel builds trust and demonstrates social proof that re-engages your ideal customers, and gets them to revisit your website and convert.

Getting Started with DCO

You can access DCO via the updated Ads Manager and Power Editor. First, navigate to the Ads Manager main menu in the top-left corner of your Ads Manager dashboard. Then select All Tools from the drop-down menu and choose Power Editor under the Create & Manage column. Once Power Editor is open, click Create Campaign. The quick creation workflow then opens in a new pop-up window.

Type in a name for your campaign and choose your campaign objective. Next, name your ad set and your ad. Once you’ve done that, click Save to Draft.

After your draft campaign appears in Power Editor, click the Ad Set link in the top right. This takes you to the Ad Set level of your campaign where you can enable Dynamic Creative.

Click the Dynamic Creative toggle button to turn on the feature. You’ll then see a pop-up that explains that some ad set and ad settings will be changed that aren’t compatible with the new Dynamic Creative feature.

Ad Settings

Next, complete your ad set settings by choosing your budget, audience targeting, placement, and optimization. When your ad set is ready to go, click the Ad link in the top right to navigate to the Ad level of your campaign. This is where you add your creative asset variations.

At the Ad level, select your Facebook page. Below that, your ad format option is automatically set to a single image or video. Below the creative format, you’ll find the usual Ad level layout with your image or video selection, website destination, display link, text, headline, news feed description, and CTA. Add buttons appear next to the assets of which you can create multiple variations.

Images and Videos

Now select the images or videos you want to test. You can choose images or videos from your library, or upload them directly from your computer. Facebook lets you add up to 10 images or 10 videos.

Now move on to the text variation. After you add your initial copy for the ad, you can add up to four other copy variations by clicking the Add icon.

Next, create your link headline variations. Your headline appears under your images or videos in your ad. As with text variations, you can have up to five link headline variations. Although the character limit is the same as the text limit (255 characters), use concise headlines so they’re not cut off when viewed on mobile devices. Now move on to the news feed link description that appears under your headline. Similar to the text and headline components of your ad, you can add up to five news feed link variations.


Finally, select up to five CTAs from the drop-down list. Make sure the CTAs you test are relevant to the goal of your campaign. For instance, if you’re running an offer ad for an individual product, there’s little point in testing the See Menu or Apply Now CTAs. Just because you can test up to five doesn’t mean you should.

Once you’ve added all of the asset variations you want to test, click the View More Variations button in the top-right corner to preview your ads. In the pop-up window that appears, select any of the asset variations you created to preview the potential ads Facebook will create when randomizing the components.

dynamic creative optimization


What to Expect from User Acquisition Advertising in the Next Year

We believe Facebook is about to change UA advertising all over again. Facebook has all of the pieces for an app campaign-style product. It is likely to be a combination of CBO + DCO. (Campaign Budget Optimization + Dynamic Creative Optimization). That’s a fancy way of saying that Facebook is working on a new feature that will optimize creative, creative placements, bids, and budgets for social marketers. We expect this new capability to be out sometime in Q1 2020. So stay tuned and also feel free to contact us with any questions.



Read our blog post, UA Media Buying Model, and see how it works in tandem with our Ad Concept Model. Learn the media buying best practice strategies for Facebook Android, Facebook iOS SKAN, Google, and TikTok.

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