Casa Media - what-are-facebook-dynamic-product-ads

Shuriken cursor Shuriken cursor
← Back to blog

What are Facebook Dynamic Product Ads?

Nina De Winter

Did you know that the average click-through rate of banner advertisements is 0.1%? Not only does this illustrate the decline in interest for advertisements, but it also shows the importance of standing out with your advertisement campaigns.

Facebook’s dynamic product ads are a great way to do so. Today, we’ll talk about what these so-called DPAs are, why they are useful for your business, and how you can set them up.

What are Facebook dynamic product ads?

Facebook dynamic product ads can be best described as an ad format that allows businesses to promote their products to specific target audiences on Facebook, Messenger, and Instagram.

The advertisements are displayed to users who have already expressed interest in a business’ goods by browsing their website or application. In other words, consumers from across the web are retargeted in this process.

In this case, dynamic product ads facilitate the advertising process for businesses. Instead of having to create individual ads for every single product, firms can simply upload their entire product catalog on Facebook. 

Consequently, Meta will automatically determine which products will be showcased in your advertisement, depending on who views it.

So, if you recently browsed the newest collection of your favorite clothing brand, you shouldn’t be surprised if you come across the same clothing in a Facebook advertisement.

If you’re interested in learning more about ads, you might want to check our blog post about the 100 best Instagram ads of 2023.

When to use Facebook dynamic product ads

You may be asking yourself right now when to make use of dynamic product ads. In order to answer that question, your product count has to be taken into account.

As a rule of thumb, remember the following:

  • If you sell less than 10 products, it is better to keep it simple and craft ads manually using carousels.
  • If you have between 10-20 products and with high levels of similarity, opt for using normal product carousels to showcase the best selling items.
  • If your product catalog has more than 20 products, add dynamic product ads to your marketing strategy.

Facebook dynamic product ads suit the needs of companies with an abundance in products the most.

In fact, Facebook’s machine learning system is so smart that it automatically matches the most relevant ad content with user behavior. One of the benefits is therefore that you can focus on other business activities.

Benefits of using Facebook dynamic product ads

Although we briefly already touched upon the advantages of Facebook’s dynamic product ads, they do more than save you time. 

Curious to know which other benefits these ads have? Keep reading!

Higher degree of customization

Saying that personalization matters in today’s e-commerce is an understatement. One of the key advantages of DPAs is that they develop customised ads for each online user, depending on their browsing history and purchase history.

Since customers attach great importance to a ‘personal touch’ – especially in advertising – DPAs can be a catalyst to higher engagement and conversion rates. This way, they enable your business to create a deeper connection with your target audience. 

It is crucial to understand your conversion funnel and maximise your conversion rates. Not really sure what yours are? No worries – we gathered everything you need to know in an article about conversion rates.

More insights into consumer behavior

As mentioned before, Facebook dynamic product ads provide you with more information about your target audience than regular ads. 

This is the case because Facebook collects and analyses specific consumer behavior data to determine which products are most relevant to display for certain people.

Additionally, DPAs track specific information, such as user interactions with individual products within the advertisement. The benefit in this? Simple: you gain insight into specific product preferences. 

I know, I know. Other types of advertising also lead to a better product knowledge and understanding, but their metrics are not as specific as those of dynamic product ads.

DPAs are adjusted in real-time

When you adjust something in your product catalog, the information reflected in the DPAs is automatically updated. 

From changes in price to new product arrivals, the advertisements are always shown in real-time. This means that once you start creating dynamic product ads, they will always be accurate and relevant. 

Dynamic product ads help you save money

Usually, advertising tends to have a high acquisition cost. This happens because they are targeting consumers who haven’t previously expressed interest in your business or haven’t even heard of it.

As a consequence, you end up needing to contact or show your ad to more leads before you find someone who will actually buy your products.

On the other hand, Facebook dynamic product ads have a lower acquisition cost, since they target customers who have already demonstrated curiosity about a business’ products. 

With this in mind, you can save money and convert more of your ad’s audience.

An example of how one can be targeted by Facebook dynamic product ads

How to set up Facebook dynamic products

Now that you’re aware of the benefits that come with dynamic product ads, it’s time to learn how to launch these marketing initiatives yourself.

If you’re not the best with social media, don’t worry. Although configuring your first dynamic advertising campaigns can be more time consuming and complex, they are much easier to maintain later on.

Install a Facebook Pixel

First and foremost, you need to download a Facebook Pixel. This tool helps you to run dynamic product ads and track conversions in your advertising campaigns. 

Also, in this way Facebook is able to monitor how people interact with your products on your website.

Set up a Business Manager account

It is not possible to start advertising on Facebook without having a Business Manager account.

Such an account gives you the option to link your product catalog to your business, to establish a new Facebook business page, or simply connect your existing page to Business Manager. 

Once this is done, you can head to the Commerce Manager to create your product catalog.

Create your product catalog

The third step consists of making a product catalog of all the products you want to promote on Facebook.

In this part of the process, you have to provide Meta with product details. These can go from the product price to product availability and location.

Are you already using a third party e-commerce platform? In that case, it is possible to simply integrate your product catalog by using Facebook’s integration possibilities. If the answer is no, you’ll have to manually create a catalog by uploading a spreadsheet.

Verify the parameters your Facebook Pixel

Congratulations, you have successfully imported or created your product catalog at this point! 

Now, it is time to verify your Pixel and its parameters. Check if your Facebook Pixel is connected to your product catalog, and ensure that it has the right events and parameters set up.

By doing so, you are sure that Facebook is displaying your products to the right people.

Once this is done, you can finally set up your dynamic advertising campaign. Go to the Facebook Ads Manager and go to the tab ‘Create new campaign’. There, select ‘Sales’ as a campaign objective.

Create your dynamic product advertising campaign

As soon as you have selected the option of a sales advertising campaign, you just have to follow the next steps on your screen to finalise the creation of the dynamic product advertising campaign.

We recommend launching a manual sales campaign instead of the advantage+ shopping campaign. Why? Because in the case of a manual campaign, you have more control over your campaign targeting and set-up.

Next, you have the chance to allocate a budget to your advertising and choose a target.

Which audience to target with Facebook DPAs

Now that your dynamic product advertising campaign is almost good to go, you need to decide which audience you want to target. You have the choice between broad audience targeting and retargeting.

Broad audience targeting

In line with its name, broad audience targeting gives your business the opportunity to reach new audiences, who will see customised ads based on their browsing behavior.

In this case, the target audience has previously expressed interest in products similar to the ones you are selling. However, they haven’t browsed your firm’s product catalog yet.

Retargeting

We speak of retargeting when your advertisements are being shown to consumers who have previously visited your website or application. 

This audience option can also be used if you want to run cross-selling or upselling ads to these audiences and base it on online users who have previously purchased one of your products.

Conclusion

Facebook dynamic product ads are advertising campaigns one can find on Facebook, Instagram, and Messenger. They are established to re-engage users who have interacted with a business’ website or app in the past. 

DPAs exhibit relevant products from a business’ product catalog. This type of advertising allows you to set up one main advertisement. There is no need to create countless individual ads. 

Also dynamic product ads update automatically. This means that once advertising is online, all the information remains displayed in real-time and it is always accurate.

Do you require any help with your business’ advertising? Or simply looking to step up your advertising game? Feel free to contact our team of advertising experts at Casa Media today! 

Published

29 September 2023

Category

Related articles

← Back to blog

Let's talk about your project

We'll be happy to learn more about you

Your request was sent successfully, we'll be getting back to you soon.

There has been a problem sending your request, please try again.

The email you have entered is invalid, please try again.

arch icon casa media
plus icon casa media
asterisk icon casa media
flower icon casa media

Prefer to call or email?

+1 438-299-5096 → bonjour@casamedia.com →