In February 2015, Facebook announced the Dynamic Product Ads, an ad format that lets advertisers create dynamic ads from the products of their catalog. The DPA format is the answer to a growing need for a method of dynamic cross-device retargeting, combining the behaviors of the individuals, with the information that Facebook gets from them.
The DPA configures Facebook’s own retargeting system for custom audiences and it works for each user across all platforms.
In Adsmurai we have been using this format since then, and now that it is about to turn one year, we want to mention to the best of DPA.
How does it work?
Following three simple steps:
A user visits your website, envisions different products, adds them to the cart or purchase them.
This data is sent to Facebook through the Website Custom Audiences.
The user is impacted on Facebook with products that can be interesting.
The advantages of the DPA
Multi platform orientation: Regardless of the contact point of a user with a product, the DPA allows the ad to appear on that platform, but also in the other platforms used by the same user. An example: If a user searches for information about new books from his computer, a DPA about books will appear on the same computer, but also on his phone or tablet. This function does not exist in Facebook Exchange (FBX).
Save time: the DPA allows you to use a template for all its products and create thousands of ads automatically without having to configure them individually. From the catalog, Facebook automatically provides the product name, description, URL of the landing page, URL of the image and status of the stock.
Maximizes ROI with retargeting based on the product: Retargeting reaches the next level, including the exact products or services seen by users on the ads, in order to provide personalized and more likely to succeed ads.
Up-selling and cross-selling: These two modes allow us to offer products that have value for users based on their searches. The cross-selling involves making a retargeting or present a DPA from a category. Thus, if users search, for example, luxury shoes, through the cross-selling they could reach out a DPA on luxury handbags, inside the same category. The up-selling meanwhile provides DPAs on the same product sort. Thus, users who wanted a shoe model, will be impacted with other shoes, and probably, products with a higher conversion rate.
3 Tips to determine your DPA budget
Apply a reasonable budget: If your bid is too low, you may lose the opportunity to reach all your potential customers and it will worsen the development of your campaign.
Increase the retention time: if the audience is under 20, the ads are not delivered. So, if your company is small and your site has little traffic, increase the retention time to reach the widest audience as possible.
Check your catalog: Facebook’s set information and your web catalog information should correspond to facilitate the delivery and improve conversions. Make sure each set of product has a great number of products. If you have 1000 products but only add 10 to the set, the delivery will be limited.
The results of the DPA
The DPA campaigns have left us learnings like these:
The format makes it easier to advertise differentiating between brands and categories.
Conversions multiplied up to 32 times the investment.
The CPC is reduced. In short-term campaigns it can be less than 0.30 €.
Users are thrilled with what interests them, so the link CTR may be higher than 2%.
DPA and Adsmurai Marketing Platform
The DPA format is already built into Adsmurai Marketing Platform (before known as "Katana") and we have optimized their capabilities to make it easier and more intuitive in comparison to Facebook or Facebook Exchange.