Facebook began offering dynamic product ads in February, and those ads will gain several robust new features “over the coming weeks.”
Dynamic product ads allow advertisers to feature multiple products in a single ad.
The social network announced in a Facebook for Business post that upcoming new features for dynamic product ads will include cross-selling functionality, conversion optimization and, as announced earlier Tuesday, availability via Facebook Audience Network.
The motivation behind the addition of the new features was explained in the Facebook for Business post:
Advertisers have always been able to use dynamic product ads to show related products to people who have viewed an item or added it to their cart, and soon advertisers will be able to use dynamic product ads to show related products to people who have purchased an item, too. So if someone purchases a bike on your website, you can start showing them product ads featuring complementary items, like bike helmets and baskets, since they may be interested in those products, too.
Additionally, advertisers will have more flexibility in defining related items. Let’s say someone added a pair of designer shoes to their cart in your mobile app. You may choose to show them ads featuring products from your designer shoe category, plus items from the designer handbag category. It’s up to you how you define your product categories, and this update gives you more control.
Additionally, marketers want to connect with people who are likely to purchase. Soon advertisers will be able to optimize dynamic product ads for conversions, meaning the Facebook ad delivery system will find people likely to buy the product—not just click on it—and show them your ad. Optimizing for conversions helps advertisers spend more efficiently, since they’re only showing their ad to people likely to purchase. In early testing, conversion optimization for dynamic product ads delivered more efficient spend than CPC (cost per click), so advertisers who optimize dynamic product ads for conversions can expect to see fewer but higher-value impressions.
E-commerce and online bidding site eBay and online art retailer Juniqe have experienced success using Facebook’s dynamic product ads, with the latter boosting conversion rates by 50 percent while lowering cost per purchase by 63 percent.
eBay vice president of global growth Jody Ford said in the Facebook for Business post:
eBay customers want to shop at the moment of inspiration, and dynamic product ads are a valuable way to connect them with a more personalized and relevant selection of items as they use Facebook. Dynamic product ads give eBay a new way to match customers’ interests with the right items from our nearly 800 million listings—on any device they use. We are encouraged by early tests, in which we’ve seen dynamic product ads drive incremental traffic and conversions. We are working with Facebook to scale even further and increase our mobile engagement through deep linking with dynamic product ads.
Juniqe co-founder Sebastian Hasebrink added:
Dynamic product ads combine the strengths of Facebook in one ad format—a highly targeted audience with highly relevant creative. Since each user sees unique creative with products they’ve actually looked at, enriched with recommendations, they are much more likely to convert at a cheaper CPA (cost per acquisition) compared to other ad formats. Dynamic Image Templates from Smartly.io allowed us to personalize the creatives even further, resulting in a scalable solution for beautiful creatives previously not possible in product-based retargeting.
Readers: What are your thoughts on Facebook’s dynamic product ads thus far?