Dynamic Product Ads – What They Are And Why You Should Be Using Them
I want you to think like a normal internet user for a second. Wherever you go on the internet, whether it’s Facebook, Reddit, or just a normal blog, you see ads everywhere. Even when you don’t want to buy something, you’ll see an ad pop-up, for example, in the form of banner ads. Sometimes, you feel overwhelmed and look for ways to remove them like Adblockers.
When you see ads from the consumer’s perspective, you’d know why they are annoyed by ads and become immune to them.
But you are an advertiser. If you know that people are annoyed by ads, you can’t stop advertising. You can’t stop looking for ways to improve your ads and results.
One way to do that is to remove extra ads with betters ads. The ones that are more targeted and relevant.
Facebook’s Dynamic Product Ads (DPAs) let you do that.
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What Are Dynamic Product Ads?
The first thing to know about Dynamic Product Ads is that people confuse them with ordinary Facebook remarketing ads. They are different.
Dynamic Product Ads lets you create customized advertising content for your Facebook eCommerce audience without building a retargeting campaign from scratch.
Sometimes, people view products in your catalog but don’t buy them. Dynamic Ads track their behavior and give them a custom ad experience. In simple terms, it’s automating your Facebook remarketing efforts.
It doesn’t have to be about e-commerce all the time. As long as you have a product feed, it will work.
Why You Should Use Them?
Who isn’t familiar with Facebook being the biggest social media? Around 2.8 billion monthly active users and a staggering $84 billion ad revenue compel more and more retailers to run ads on this platform. So it’s obvious that advertising on Facebook is a big thing.
But does overall Facebook advertising being huge mean that Dynamic Product Ads work? Let’s find out.
The average banner ad click-through rate is 0.1% which shows that not every type of ad can bring you a great ROI. You have to look for more ways to bring good results. Dynamic Product Ads are one of them.
Although there are other ad types, Dynamic Product Ads stand out from other ad types in terms of increased ROAS and lower CPAs. They are a great way to engage with past visitors and purchasers. They can also help you find new customers.
9Five, a luxury sunglasses brand, made $3.8 for every $1 spent by using dynamic product ads. Not only that, but the cost per acquisition was 40% cheaper than their goal.
You’ll be able to save time by automating your remarketing campaign setup. They may also help with scaling your campaigns. Not only that, but they can help you improve your engagement rates and the success of your campaigns. Within no time, you’ll be able to retarget past page viewers and attract new ones.
How To Set Up Dynamic Product Ads?
By now, you’ll know the importance of Dynamic Product Ads for your online business. Now let’s look at the 5 key steps to set them up.
Install The Facebook Pixel On Your Website
Or if you are a mobile device, use the Facebook SDK for mobile apps. To get started with Facebook Pixel, read my guide here.
After setting it up, you can automatically populate the pixel events. These events will let us create a highly relevant audience for our ad. For example, someone viewed a product but didn’t buy it. DPA requires the following main pixel events:
- View Content: This is triggered after a view on a particular product page.
- Add To Cart: This happens after adding the product to the cart.
- Purchase: This is the final step in the checkout process.
Create Your Product Catalog
It is necessary because you need to link the catalog on your eCommerce store to Facebook. This way, it will be plugged into the ads.
Every e-commerce store has a database containing information such as brand, product name, price, and image. Previously, we had to import everything manually. We might have to use the manual way sometimes. But in most cases, it’s a good idea to use a plugin.
I’ll give you two examples: One for Shopify and the other for WooCommerce.
Shopify – Flexify: If your catalog has up to 1,000 products, you can use Flexify’s free plan. It has a four-start rating in Shopify App Store, and more than 40,000 people use it. Its free plan is worth trying.
WooCommerce – Pixel Caffeine: It lets you manage your Facebook pixel and Facebook product catalog. It’s also trusted by many people and is free to use.
Segment The Products Into Product Sets
Normally, one product that contains all products is good for general retargeting. But if you want broad targeting, up-sells, and cross-sells, having sets of curated products is better.
Imagine if Microsoft ran DPAs to their audience. They’ll create a product set with the latest Xbox, Windows, and MS Word, and let go of the remaining products.
Decide Your Audience
You have four main options to consider when selecting the audience:
Broad audience: These people haven’t viewed your products yet.
View content or add to cart but not purchased: People who have interacted with your products but haven’t purchased yet.
Up-sell: Users who have viewed a different product set.
Cross-sell: This shows relevant products to buyers. For example, if a person just bought a phone, show them a case or a charger.
Create Your Ad
The last step is the easy one. You have all the needed information from the previous steps. Add a few lines of text, and you are good to go.
In this guide, you learned about the importance of DPAs and how to set them up. The steps might seem time-consuming, but they are simple.
Creating the catalog requires a little effort. But from there, it’s smooth and easy progress.
What are your thoughts on DPAs? Do let me know in the comments below!