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Most ads are one-way: you create them and then serve them to a large audience. Now imagine if you could personalize every ad to show your consumers exactly what they want to see, exactly when they should see it.

Sounds like a win-win? It is!

Dynamic product ads do just that and allow you to automate your personalized ads. They help you turn intention into sale and drive more engagement with your audience. This guide will take a look at why DPAs are marketers’ favorite, and how you can give your social media marketing a boost.

Let’s start!

What are dynamic product ads?

Dynamic product ads are a type of Facebook and Instagram ads that use ad templates created previously for offer personalized content to consumers based on their online activity. They combine the best of automation and audience targeting to create a highly personalized experience.

Here is an example:

Butterfly

Online platforms collect real-time data based on consumer behavior and then send them a perfectly tailored ad. For example, if a consumer visited your site and browsed a particular category of shirts but didn’t purchase, Facebook would show them an ad for those shirts.

Businesses can promote a small portion of their catalog to a highly targeted audience, or use multiple ads to showcase a wider range of products. They can target specific groups of their target audience with ads that help them take the next step in the sales funnel.

Why are dynamic product ads important?

Dynamic product ads allow you to send the right message to the right group of people. They are incredibly useful for boosting social media engagement. Since each consumer has different preferences and is at a different stage in their buying process, running the same ad to all of your consumers is unlikely to give you the type of results you want. DPAs use data to help you show the products that interest each consumer.

They also allow you to scale quickly because the ads follow a pattern, so you don’t have to create separate ads for each product. The flexible ad format also enables omnichannel presence on all devices, including tablets, smartphones and desktops. A study estimated that PADs can triple your orders and return 2.5 times your original investment:

Dynamic remarketing ads

A case study looked at telecommunications company Yatango, which used dynamic ads to target people who were watching specific products like prepaid data plans. The result was a 200% increase in registrations! This was possible because they showed products to people who had already shown a clear interest in them.

DPAs can also help you increase your purchases from existing customers by showing content that matches what they purchased. Businesses can easily up-sell and cross-sell with these types of ads by showcasing products tailored to specific customer segments.

It sounds complex, but DPAs aren’t too difficult to set up. In fact, many of the best ecommerce platforms on the market now offer integration with Facebook to help you create your ads quickly and efficiently, even if you are just starting out.

6 best practices for using dynamic product ads effectively

DPA combines creativity with the scientific basis of data-driven marketing efforts. If used well, they can help you capitalize on your consumer’s intention and push them toward a purchase.

This section presents six tips that can help you take advantage of dynamic ads.

1. Avoid overlaying your ads

You will likely run a variety of dynamic product ad campaigns, and the same message can apply to multiple audience segments. The ads then compete with each other, which can have a negative impact on performance. Avoid this Facebook advertising error by setting up campaigns that are mutually exclusive.

When creating the campaign, use the Audience Overlap Tool to compare audience segments and make sure you don’t unintentionally bombard people with too many ads.

2. Create the right sets of products

Deciding what products to show is a critical part of serving targeted ads. If you have a wide range of items in your store, Product Sets allow you to offer particular groups of products to a defined audience. This is essential when you want to create upsell and cross-sell campaigns. Use the « Product Sets » option in the left sidebar when creating your listing:

Product sets

This tool allows you to group products in the most logical way and only show very relevant ads to your target customers.

3. Test, test and test advertising content

Be creative with your copy and always take the time to A / B test it. A / B test uses two versions of a content item to see which one performs the best. Since you only have seconds to make a good impression, your copy should be engaging and include a clear call to action.

Another aspect to test is whether you want to run one or more ads. Dynamic product ads allow you to display multiple products in what is called a carousel ad. You might have seen them on Facebook – where a brand has more than one ad in the same location, and you can swipe to see different products. Like that:

Sample Foodpanda ad copy

These advertisements allow you to include up to 10 items in an ad space and give you the chance to showcase more of your products. A Northern Commerce study showed that their customer could increase their purchase conversion rates by 137% just by switching to carousel ads!

4. Don’t forget the app buyer

Mobile optimization of online content is now a necessity. The number of people shopping from their mobile devices is on the rise and will soon account for almost half of all online sales:

US Mobile Commerce Volume Forecast

If you have a mobile app, remember to include these users in your customer sets for your dynamic product ads, as well as those who visit your desktop site. It also allows you to meet consumers who have visited both your app and your website.

5. Take advantage of personalized audiences

When you create dynamic product ads on Facebook, you can create Custom Audiences from your existing mailing list and CRM customer database. You can download a file containing the data or import email addresses directly from Mailchimp:

Create a personalized audience

This helps you further refine your approach and deliver even more personalized ads. For example, if someone has purchased from you before and is part of your loyalty program, you can send them specific ads targeting those members.

6. Keep the budget in mind

If you have a budget constraint, it is best to stick to retargeting your site and app visitors who have already expressed their intention to buy. Keep it simple with remarketing ads that help you tap the people most likely to convert.

As a point of reference, a ad calculator estimates that Facebook ads cost $ 7.19 per 1,000 impressions, while Instagram costs $ 7.91 per 1,000 impressions. Fortunately, you can set a budget for your campaign up front so you know exactly what you’re going to spend.

Wrap

Dynamic product ads are a great way to send targeted ads to your existing customer base and to those who have expressed interest in your products. Dynamic product ads can help increase conversions by allowing you to reach the right audience at the right time.

DPAs combine data and automation to help your brand engage with consumers on social media and sell and sell your products. These automated ads have been proven to help businesses get the best data-driven consumer insights to help them make their campaigns even more effective.

Remember a few simple tips to help you get the most from your PADs:

  • Make sure your campaigns don’t overlap
  • Use product sets to show only the most relevant ads
  • Get creative with your ad content and run A / B tests to see what works
  • Take a mobile approach first
  • Use personalized audiences to target your existing and previous customers
  • Adapt your campaigns according to your budget

If you use them correctly, your dynamic product ads will help you increase conversions, drive engagement, and give your promotional activity an edge through robust use of data.

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