Facebook announced on Tuesday a way to highlight one or more products in an ad. Named Product Ads, Facebook has been testing this for a while (and multi-product ads are available in Power Editor), but announced a full rollout on Tuesday.
Product Ads will be available through Power Editor in the coming weeks. They are available now through the ads API through Facebook Marketing Partners.
Facebook announced the feature in a Facebook for Business blog post:
Product ads offer businesses a number of ways to highlight different products on Facebook. Marketers can upload their product catalog and create campaigns targeting certain products to specific audiences, or let Facebook automatically deliver the most relevant products to people. Products can be shown in single- or multi-product ad units.Product ads can be customized for use throughout the customer journey, from discovery/awareness through purchase. Here are some options:
- Advertisers can automatically reach people who visited their website/app (via Custom Audiences), or reach people based on specific interests, locations, etc.
- Advertisers can curate ads as they see fit. For instance, they can highlight products that were viewed on their website/mobile app or showcase best selling products. Or they can create a multi-product ad that highlights the different benefits of a single product.
Brand Networks, a Facebook Strategic Preferred Marketing Developer, has been using product ads in beta, and found they deliver a 3.6X lift on ROI. Brand Networks worked with an e-commerce client, reaching more than 2.8 million of the company’s unique site visitors on Facebook. Here are some results:
Based on a 24-hour post-click attribution window reported by Facebook:
- Mobile CPMs were 52% cheaper than desktop feed, resulting in 22% more scale at equivalent ROI
- 40% of revenue was driven by ads delivered on mobile
Compared to non-dynamic Website Custom Audiences campaigns (category-level promotions) over the same period and with equivalent media spend, Dynamic Product Ads yielded:
- 360% higher Return-on-Ad-Spend
- 100% higher conversion rate
- 10% higher average order size
The revenue impact has the potential to be somewhat significant. This is, for all intents and purposes, similar to a mini-store and provides retailers and e-commerce businesses the opportunity to showcase multiple products within one ad unit. This allows cross-selling to happen higher in the funnel and can potentially ‘capture’ the engagement of different audience sets.
Readers: What do you think of Product Ads?