Dynamic Product Ads on Facebook A COMPLETE GUIDE

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1 Dynamic Product Ads on Facebook A COMPLETE GUIDE Adphorus 2015

2 Content Introduction 1 Benefits 2 How Dynamic Products Ads Work 4 Retargeting with Dynamic Product Ads 8 Best Practices 9 Bonus Feature How to Scale Your DPA Spending 13 Case Study (Restorando) 14

3 Introduction In February 2015, Facebook announced Dynamic Product Ads (DPA), an ad format that enables advertisers to create dynamic ads from their product catalog. It is an ad format that allows product retargeting on a cross-device level, which means you can reach people on desktop, mobile and tablet. DPA is a solution to help you promote your entire product catalog on Facebook and works best for e-commerce and retailers with high web traffic and a large inventory that are looking to engage their shoppers and drive conversions online. We ve been using this product with our advertisers over the past months and we have indeed seen an up to 3 times increase in conversion rate and up to a 65% decrease in Cost per Conversion. CPC 65% decreased Conversion Rate x3 Adphorus Facebook Marketing Partner 1

4 Benefits Cross-Device Targeting Advertisers can reach users with single or multi-product ad units across all devices regardless of their original touchpoint, which was not possible with Facebook Exchange (FBX). For example, if a user browses a product on their tablet device, they will be targeted with the ad promoting the same product across their phone, website and tablet alike. Save time with a scalable and always-on ad format Dynamic Product Ads is a scalable always-on retargeting solution that saves lots of time by promoting all your products. DPA allows advertisers to use one ad template for all products and create thousands of ads automatically with unique creatives without having to configure each individual ad. Facebook automatically pulls relevant product ID, name, description, landing page URL, image URL and stock status from product catalog feed to fill out the content for that ad. Adphorus Facebook Marketing Partner 2

5 Max. ROI with Product-Based Retargeting Dynamic Product Ads take retargeting to the next level by including exactly those products or services that people viewed on website within the ads themselves. Since for Dynamic Product Ads you take additional steps, for example adding a custom event to your WCA pixel and creating a feed, it can deliver customized, and thus, betterperforming ads. Up-Selling and Cross-Selling Between Categories With the introduction of up-sell and cross-sell, advertisers will have the chance to increase lifetime value of their customers and increase their average order value. When a user purchases an item from one product set, advertisers can cross-sell items from another category. For example, as an e- commerce company, you can choose to suggest luxury handbags to people who have recently purchased luxury shoes. Up-sell is used to encourage a customer to move from considering one item within a product category to another that would have higher profitability (higher margin, higher price point, higher conversion rate, etc). For example, if a customer viewed a shoe that has a poor conversion rate, as the e-commerce advertiser, you could instead show another shoe that has a higher profit and more likely to lead to a conversion. Adphorus Facebook Marketing Partner 3

6 How Dynamic Product Ads Work Dynamic Product Ads simplify the advertising process with modified Website Custom Audience Pixel. With this dynamic WCA pixel, Facebook is able to report when specific products from your catalog are viewed, added to cart or purchased. This is how it works: The user visits your website, views products, adds them to their shopping cart and purchases them. Each of these events is sent back to Facebook using events with WCAs (Website Custom Audiences). Using different scenarios, users get re-targeted on Facebook and on external networks. Adphorus Facebook Marketing Partner 4

7 Product Feed Integration Dynamic Product Ads allow advertisers to create link or multi product ads that are targeted based on a set of products. Product Feeds are dynamic uploads of your products and contain product items such as stock keeping units. You can also have a single Product Feed to represent all of the items in your catalog. Adphorus Facebook Marketing Partner 5

8 Difference between DPA & FBX Dynamic Products Ads (DPA) and Facebook Exchange (FBX) both provide a method to dynamically retarget on Facebook. However, DPA offers the following improvements over FBX: DPA can be served both on desktop and mobile app. FBX ads only run on desktop computers DPA enables advertisers to feature five products within a single ad. FBX ads are limited to single product ads. DPA has more retargeting features, such as cross-device retargeting and deep linking into apps. Adphorus DPA Features Features Adphorus DPA Facebook DPA Facebook FBX DPA Up-sell, Cross-sell Dynamic Carousel Ads DPA for Mobile Apps Cross Device Retargeting Mobile Retargeting Dynamic Image Templates DPA Prospecting Adphorus Facebook Marketing Partner 6

9 How to Create Website Custom Audiences on Adphorus You can create your Website Custom Audiences on Audiences section in the Assets tab. 1. Type the name for your audience, then choose a dynamic rule to make a Website Custom Audience. 2. Select the domain and choose the Facebook ad account you will Custom use for the Audience audience. Pixel 3. Click on create and your remarketing pixel will be ready. Once you ve got your remarketing pixel placed in the right place on your website, which is at the end of <body> tag, Facebook will start to track people you specify who visit your website. Note that you need to specify which Website Custom Audience you want to use for your campaign in targeting section. Adphorus Facebook Marketing Partner 7

10 Ad Templates You can set up ad templates to create dynamic product ads and choose to show a single product or multiple products at once using the carousel ad format. Ad templates allow you to pull data, such as product names, prices and pictures, dynamically to create dynamic product ads. Retargeting with Dynamic Product Ads In Adphorus, you have unlimited options to create custom remarketing scenarios using your own custom event appropriate to your business model. For example, you can create an audience from users who: Changed the search criteria Ranked search results based on specific information (such as price, date etc) Picked the colour of the product as they indicate further indication of purchase intent. Adphorus Facebook Marketing Partner 8

11 Best Practices Target visitors showing purchase intent Audience segmentation allows you to tailor your ads to users in different stages of the sales funnel. Coupled with Dynamic Product Ads, it enables you to serve the right products to the right people based on a user s level of interest. Using the events on your custom audience pixel, you can create the following audience types on Adphorus: 1. Viewed but not purchased 2. Added to cart, but not purchased 3. Viewed or added to cart, but not purchased 4. Custom remarketing scenarios Viewed but not purchased includes website visitors who visited a product page but haven t purchased the product yet. Further down the sales funnel, Added to cart, but not purchased narrows down the audience only to those who added a product to the shopping cart but did not complete the purchase. Adphorus Facebook Marketing Partner 9

12 Users who added to cart but did not buy indicate the strongest intent to purchase. Because these users are so far along the conversion funnel, they are the perfect candidates for remarketing campaigns. You can also specify the timeframe for the retargeting scenario. For example, if your e-commerce site is getting a high amount of traffic, decreasing the timeframe can increase your conversion rate, as the ads will be shown to people who added the product to cart but did not purchase in that period of time. You can also create remarketing scenarios using your own custom event appropriate to your business model. For example, you can create an audience from users who changed the search criteria, ranked based on specific information (such as price, date etc), or picked the colour of the product, as they indicate further indication of purchase intent. Target customers based on LTV If you run your campaigns with Adphorus, you can choose to segment your audiences based on their LTVs and choose to give higher bids for those with a history of spending more money. You can do this by choosing custom targeting on your product audience and target users with an LTV of more than $1000, or with an average basket size of $100. This will allow you to show your ad to a more qualified audience and as these users are more valuable to you, you can bid higher to win more auctions. You can expand the segmentation based on your business and your KPIs. Adphorus Facebook Marketing Partner 10

13 Be careful with overlapping audiences When you are running two ads at the same time targeting the same audience group, you have to be careful about overlapping audiences. In such a case, your ads are competing against each other, resulting in a decrease in overall campaign performance. The best way to avoid this is to exclude audiences of one campaign from that of the others. Another way would be not running all the campaigns at the same time. Target your mobile users If you have a mobile app, you should make sure to retarget users browsing your products inside your app. Adding mobile app events to your app allows you to use Dynamic Products Ads for your mobile audience. This will help you to advertise to users who browsed a product on their mobile and target them on desktop, and vice versa. Adphorus Facebook Marketing Partner 11

14 Use Multi-Product Ads You can create multi-product ads showing up to 5 products in one post based on users previous activity on the website. Showing more products on an ad increases the chances of turning your potential customers into actual shoppers. For example, you have a website selling 500 different models of women s shoes, and a visitor takes a closer look at ten particular models on her mobile phone. With the help of dynamic retargeting she will start to see those five last visited models as a multi-product ad on her mobile and desktop news feed. Split By Placement If you split your targeting by placement (Mobile News Feed, Desktop News Feed & Desktop Right Column) - which is simple with one-click on Adphorus - you can get the most out of your DPA campaigns by bidding differently for each placement. Adphorus Facebook Marketing Partner 12

15 BONUS FEATURE: HOW TO SCALE YOUR DPA SPENDING SET REASONABLE BID AND BUDGET: Make sure you have a reasonable budget and bid. If you bid too low, you will miss out on reaching all your potential audiences. Similarly, if your budget is too low, it will threaten performance of your campaigns. INCREASE RETENTION TIME: Try to increase retention time to increase your audience size as it includes people who visit product pages for a particular timeframe. If this time window is too small, your audiences might not be exposed to your ads. This is especially important for websites that don t get much traffic. Keep in mind ads won t deliver if the audience size is less than 20. CHECK YOUR PRODUCT CATALOG: Check that the product set id belongs to the product catalog for which your Facebook pixel is assigned to. Also make sure the product set has a good number of products as a percentage of the total catalog. If there are 1000 items and only 10 in the set, that might affect delivery. MAKE SURE YOUR PIXELS ARE FIRING CORRECTLY: Check that your pixel is correctly firing on View Content, Add to Cart and Purchase event. When you compare website analytics and Facebook results, discrepancies up to 20% are normal, however if that gap widens, check that your pixels are installed correctly. Adphorus Facebook Marketing Partner 13

16 How Restorando boosted its conversion rate by integrating their internal recommendation engine with Adphorus DPA Solutions Restorando is the leading online reservation platform for restaurants in Latin America with presence in 18 cities and 8 countries. Restorando managed to integrate their internal algorithm on DPA and come up with an effective solution to increase their customer retention rates. With Adphorus DPA solution Restorando: Increased Conversion Rate (Check Out/Website Click) by x6 Decreased Cost per Checkout by 49% compared to regular DPA campaign of the same market Doubled its Click Through Rate CPA 49% lower Conversion Rate X6 CTR X2 These campaigns allowed us to change the way we approach our users on Facebook by giving them real recommendations in order to help them discover new restaurants in their cities, which is finally our main goal. Lucas Ertola Online Marketing Manager, Restorando Adphorus Facebook Marketing Partner 14

17 We make it super easy to optimize your Facebook & Instagram ads and get better ROI. Request Demo We chose to work with Adphorus as they were the first FMP to truly understand trivago's business model, and were willing to adapt their product to suit trivago's needs. Through working closely together, we have been able to achieve excellent results in terms of both implementing new advertising products and bringing them 'to scale in over 40 markets. Thomas Wrobel Global Performance Marketing, trivago Adphorus Facebook Marketing Partner Adphorus 2015

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