Facebook recently launched their Dynamic Product Ads (DPAs) across their self-service platform, making it available to all accounts. This latest product advertising program has previously been available through 3rd party technology platforms, but now offers wider accessibility to businesses without the added fees.
The most exciting feature of this new ad format is that it demonstrates Facebook’s progression towards becoming a stronger performance based advertising provider, who have the potential to massively increase retailer’s revenue derived from the platform.
How do Dynamic Product Ads work?
From a consumer point of view a Dynamic Product Ad appears exactly the same as a single or multi-product ad. However, instead of going through the manual process of creating individual ads for each product, DPAs use a product catalogue feed and custom audience pixel to automate delivery of relevant personalised ads to your audience. It is these features that make this ad format extremely valuable to e-commerce retailers.
The custom audience pixel allows businesses to remarket to their website visitors based on specified variables, such as pages visited or items abandoned in cart. These added layers of remarketing improves campaign performance, and helps deliver relevant product ads. Furthermore, it allows advertisers to scale at a much faster rate than would have been possible with CRM custom targeting.
There are a variety of targeting options available including:
Dynamic product serving: Uses automation to deliver relevant product ads based on user interests, locations and more.
Manual product selections: Advertisers can showcase inventory based on segments, such as best selling items or women’s handbags.
Multi-product ads: The above image is an example of a multi-product ad that promotes a series of products within a single ad unit. Users are able to scroll through a selection of relevant products.
What is required for retailers looking to run Dynamic Product Ads?
- Before ad creation can begin, all businesses must set-up a Business Manager account.
- The next step is to have a Facebook specified product feed created, and upload it to the product catalogue feature in Business Manager.
- The custom audience pixel will then need to be installed on the business’ website.
- Create a Dynamic Product Ad by logging into the Power Editor through Business Manager and choosing the Product Catalog Sales objective.
What challenges will retailers face?
Retailers currently using Google Shopping may already have a product feed. These feeds however, are not compatible with Facebook’s DPAs, and using them will require the creation of a new feed. This is an extra expense for retailers, and if Facebook had created an integration with Google Shopping it would have made the transition between platforms even more accessible to retailers.
However, despite the current added cost of creating a new product feed is it worth advertising on both Google Shopping and Facebook? We certainly think so! While Google Shopping offers keyword targeting and remarketing, Facebook has an incredible wealth of consumer data that allows retailers granular demographic, behavioural and lifestyle targeting not available through Google Shopping.
As we know more consumers are browsing on mobile devices before purchasing. In fact, according to Google’s Mobile Path to Purchase Report 45% of smartphone owners who research on their mobile device will purchase on desktop or tablets.
Facebook’s DPAs offer a cross-device advertising solution. Users will be able to see a retailers ads on desktop even if they visit their website on a mobile device. This gives retailers a full-funnel view of their consumers, and creates a seamless experience for visitors.
DPAs are not going to be an earth shattering, ground breaking revolution for Facebook, but this program does represent a shift in how they are approaching their advertising solution. Facebook are working hard to shift the stigma that they are only a branding option, and create advertising formats that promote direct response campaigns.
With a faster market share growth rate than Google, Facebook is definitely a platform to keep your eye on in 2015.