In an overcrowded advertising market, consumers have adapted feed tunnel vision. Ads are everywhere and unfortunately not always targeted to the right audience, so they become easy to ignore. Relevant, highly-targeted ads will catch a consumer’s attention and will likely get them to convert. Dynamic Product Ads, also referred to as DPAs, are a great addition to your current social media advertising strategy that can improve overall consistency in the customer journey.
The purpose of Dynamic Product Ads is to allow advertisers to show specific items from their product catalog to consumers who have engaged with their brand’s website or app. This automated feature ensures that product-specific ads are served to the right person at the right time.
For example, if a consumer browses a specific pair of blue shoes, they will be served an ad with that specific pair of blue shoes if Facebook Dynamic Ads is set up correctly. DPAs serve as a reminder to the customer of the things they are interested in purchasing because they’ve already had their eye on it.
Once set up, DPAs are a great addition for any Ecommerce business with a robust product catalog because they decrease ad setup while simultaneously increasing ad relevancy. Creating a seamless experience for the customer is crucial if a brand is looking to improve their clickthrough rate (CTR) and number of conversions.
The benefit of this ad type is the ability to have an ad unique to each product a consumer views without having to set up each ad individually. More importantly, these ads are highly relevant to each unique user, which in turn will increase the chance of a purchase. A consumer is more likely to click on an ad for something they’ve already been browsing, rather than one that is generic or not tailored to their unique interests.
According to an article from AdEspresso, “John Boris, CMO at Shutterfly, saw a 20% increase in clickthrough rates. Kristi Argylian, Senior Vice President at Target, reports that these ads have resulted in a 20% increase in conversions compared to other Facebook ads, and The Honest Company saw a 34% increase in clickthrough rates and a 38% reduction in cost-per-purchase.”
At Wpromote, we’ve seen a lot of client success with the addition of DPAs to our paid social advertising strategies. One of our clients in the golf retail industry saw a 135% increase in revenue, 117% increase in conversions, 198% increase in CTR, and a 63% decrease in CPA. A children’s book retailer saw better results after implementing dynamic product ads - a 74% decrease in CPA and a 111% increase in conversion rate compared to static remarketing ads.
DPAs have revolutionized display ads because they can target users based on their actions on a brand’s website or app. This strategy helps move the customer down the sales funnel and makes their experience customized to their online browsing. As these statistics suggest, this ad type positively affects the actions users take after viewing an ad.
A brand can easily set up Dynamic Products Ads if they upload a product catalog to Business Manager, set up the Facebook pixel on their site, and create a dynamic ad template. If your business is new to this ad type, Facebook Business has a detailed guide on how to set these up. The process includes:
The reach of Ecommerce brands is about to change drastically with the expansion of Dynamic Product Ads. Facebook is now expanding the reach of dynamic ads to broad audiences, which includes users who have browsed multiple sites or engaged with Facebook content relevant to your products. This means that your ideal consumer doesn’t necessarily need to visit your website to be a target for your dynamic ads. They don’t even have to show purchase intent.
From Facebook:"Now, if someone has been browsing for furniture across multiple websites, Facebook may infer that this person is interested in buying a couch, and they may be a good candidate to serve a dynamic ad for furniture. The broader point here is that dynamic ads – which has primarily only been used for remarketing – are now becoming much better at predicting intent by allowing advertisers to use multiple signals for targeting, including activity on Facebook such as Likes and ad clicks, and also activity off Facebook such as website visits.”
Marketers might be thinking — “If someone visited my site and browsed my products, will Facebook show them ads from the products of my competitor?” While this may be true, it still falls under the same umbrella of using interest-based targeting already available to advertisers. Overall, this will improve the relevance of ads, which will in turn heighten the user experience on the platform. The rollout will happen slowly to specific groups who will provide feedback before the full release in the coming months.