Creative Flexibility in Programmatic: How Dynamic Ads Work

We live in a time of high expectations. Consumers demand personalized, relevant experiences, and brands must adapt in real time to capture their attention. Dynamic ads meet this challenge by automatically adjusting content, messaging, and visuals based on user behavior, location, device, or context. Unlike static ads, dynamic creatives allow advertisers to deliver customized messages at scale, improving engagement and conversion rates efficiently.

What Are Dynamic Ads?

Unlike traditional static ads that show the same creative to every user, dynamic ads automatically adjust elements such as images, text, calls-to-action, and offers based on real-time data. This level of personalization drives results - 80% of consumers are more likely to make a purchase when brands offer personalized experiences. 

With 70% of consumers expecting tailored experiences and 91% more likely to shop with brands offering relevant recommendations, according to McKinsey & Company, the need for adaptive advertising has never been greater. Dynamic ads ensure that every impression delivers the most relevant, engaging, and high-performing message, helping brands connect with the right audience at the right time.

While static ads rely on a one-size-fits-all approach, dynamic ads adapt based on user behavior, browsing history, and context, making them significantly more effective. Here’s how they compare:

By leveraging AI, automation, and real-time optimization, dynamic ads allow brands to maximize creative flexibility and advertising efficiency, ensuring that every ad serves its most relevant and impactful version to drive engagement and conversions.

How Dynamic Ads Work in Programmatic Advertising

In programmatic advertising, where ad placements are bought and sold in milliseconds, dynamic creatives ensure that the most relevant version of an ad is delivered to each user in real time.

1. Data-Driven Personalization

Dynamic ads adjust based on:

• User Demographics – age, gender, location
• Behavioral Insights – browsing history, purchase intent
• Device & Environment – mobile vs. desktop, app vs. web
• Contextual Factors – weather, time of day, trending topics

For instance, a travel brand might serve customized flight deals based on a user’s previous searches, while a sports retailer could showcase promotions based on local team popularity.

2. Automated Creative Assembly

Traditionally, advertisers needed to design multiple ad variations manually. Dynamic Creative Optimization automates this by selecting the best combination of:

• Images & Videos
• Headlines & Copy
• Call-to-Action Buttons
• Offers & Pricing

For example, an e-commerce retailer can display different product images and pricing based on a user’s browsing history.

3. Real-Time Updates: Keeping Ads Fresh and Relevant

Unlike static ads, which remain unchanged once launched, dynamic creatives evolve in real time. This is particularly valuable for: e-commerce brands (updating product availability and pricing), streaming platforms (promoting live events and trending content), weather-based campaigns (adjusting messaging based on local conditions).

A sports streaming service can promote an upcoming match only to users in regions where the game is relevant, ensuring higher engagement. Ads matching a user’s environment perform 25% better than generic campaigns.

The Role of Dynamic Ads in CTV & Video Advertising

According to eMarketer, CTV ad spending in the U.S. alone is projected to reach $30 billion by 2025, reflecting the growing importance of this channel. With 78% of U.S. households streaming content, advertisers must move beyond traditional, one-size-fits-all video ads to deliver tailored experiences.

Key capabilities of dynamic video ads in CTV & streaming:

• Personalized content. Adjusts video elements, such as overlays, text, and CTA buttons, based on user profile data.
• Location-based targeting. Serves region-specific offers or promotions (e.g., local store discounts).
• Behavior-triggered messaging. Tailors ad messaging based on viewing history and engagement patterns.
• Time & event-sensitive ads. Updates in real time to promote live events, product launches, or flash sales.

For instance, a sports apparel brand running a CTV campaign can dynamically adjust its ad creative based on the team a viewer supports. A viewer in Los Angeles might see Lakers-branded merchandise, while someone in New York would see Knicks gear.

The Benefits of Dynamic Video Ads in CTV

Higher engagement & completion rates

Since viewers see content tailored to their interests, they are more likely to watch ads in full and interact with them.

Improved Targeting & Relevance

With dynamic audience segmentation, advertisers can serve ads based on household demographics, viewing habits, and past interactions. Amazon Prime Video Ads, for example, use shopping history data to deliver relevant product recommendations within video ads.

Seamless Cross-Device Retargeting

Dynamic ads allow advertisers to retarget CTV audiences on other devices. A viewer who watches a travel ad on their smart TV might later receive a personalized mobile ad for discounted flights to a destination they viewed.

Better ROI & Reduced Wastage

By ensuring that each viewer sees a relevant ad, brands minimize ad fatigue and wasted impressions, leading to higher conversion rates and a stronger return on ad spend (ROAS). 

AI & Automation in Dynamic CTV Advertising

AI and machine learning play a critical role in optimizing dynamic CTV ads. Here’s how:

• AI-Powered Creative Optimization – Identifies the best-performing video elements based on real-time audience interaction.
• Real-Time Bidding & Dynamic Ad Insertion – Ensures the right ad is delivered to the right viewer at the right time.
• Performance Analytics & Adjustments – Continuously monitors engagement metrics and adjusts ad variations accordingly.

Streaming platforms like Hulu, Roku, and YouTube Ads have already implemented dynamic creative capabilities, allowing brands to automate hyper-personalized video ad experiences.

With CTV viewership surpassing traditional TV, advertisers must embrace data-driven, AI-powered ad solutions to stay ahead. Emerging trends include:

• Shoppable Video Ads – Viewers can interact with and purchase products directly from dynamic video ads.
• Voice-Activated Ads – Smart TV users can engage with personalized, voice-responsive ads.
• AI-Generated Dynamic Narratives – AI will create custom video storylines tailored to each viewer’s profile.

Screencore’s Approach to Dynamic Creative Optimization

At Screencore, we empower brands with data-driven advertising solutions designed for maximum performance and adaptability. Our technology enables advertisers to seamlessly deploy personalized creatives across display, video, and CTV, ensuring that every ad impression is optimized for relevance and engagement.

By leveraging AI-powered real-time optimization, Screencore enhances creative selection, programmatic integration, and cross-channel scalability. This allows brands to serve high-impact, tailored messages at the right moment, maximizing engagement, efficiency, and conversions in programmatic advertising.