According to recent studies, 86% of Internet users are affected by banner blindness. Facebook dynamic product ads provide a more relevant and targeted alternative to traditional ads.

Dynamic product ads allow you to target visitors who have visited your website but haven’t purchased anything. With dynamic product ads, you can create personalized ads for every person that visited your website. These ads can contain all the products the shopper previously viewed on your website as well as other similar products.

By reminding visitors of products they were interested in, dynamic product ads increase the chance of visitors returning to your website to make a purchase. You can also use dynamic product ads to show offers, product reviews, or let visitors know about delivery time or any benefit associated with purchasing from your business.

Why You Should Use Dynamic Product Ads

There are a number of reasons why all advertisers should consider using dynamic product ads. These ads are:

Highly personalized - Dynamic product ads show the most relevant products to people who have previously visited your website, which makes them more likely to lead to visits and sales.

Focused on products - Dynamic product ads are focused on showcasing your products and as such tend to attract visitors with greater purchase intent.

Updated in real time - They are automatically updated and don’t require the constant manual updating that is required by standard ads.

Optimized for cross-device targeting - Dynamic ads are optimized for both desktop and mobile devices and target customers on every device they use (e.g. If a shopper visits your website on a mobile device and then accesses it again from their desktop computer at a later time, they will still see your ads).

Highly effective - Brands such as The Honest Company have seen a 34% increase in click-through rate and a 38% decrease in cost-per-acquisition when using Dynamic product ads. For Target, using dynamic ads has shown to produce a 20% higher conversion rate when compared to using standard Facebook ads.

How To Set Up Dynamic Product Ads

To get the most benefits out of dynamic product ads, it is important to set them up correctly. We are going to guide you through the four steps you need to go through to start using dynamic ads.

1. Install Facebook Pixel and add events

The first thing you need to do is create and install the Facebook Pixel on your website. To create a Facebook Pixel, go to Ads Manager > Pixels > Create Pixel.


 

You will get a snippet of code that you will need to add to the header section of your website’s code.

After adding the code to your website, you will need to test that the Pixel is working by clicking on Send traffic. If the status says “Active”, you can move on to adding event codes.

For dynamic product ads, the events that you’ll want to add include View Content, Add to Cart, and Purchase. You’ll need to add their event codes to your website as well.

To check if the event codes are installed correctly, you can use the Chrome extension Facebook Pixel Helper.

2.Create a product feed

A product feed contains all the information about your products (e.g. product description, price, number of products in stock etc.). It is used to provide Facebook with all the information it needs to create dynamic ads for your website.

The process of creating a product feed can differ based on which platform your website was created on. Ecommerce platforms such as Shopify and WooCommerce have apps and plugins which make this process quick and easy.

You can also opt for creating a feed manually by adding all the information about your products to a CSV file and then uploading the file to Facebook Business Manager. The downside of using this method is that products don’t get automatically updated every time a change occurs (e.g. product price increases or decreases).

After your product feed is completed, it will be available at an automatically determined location on your website (e.g. yourwebsite.com/feed/product_feed.xml).

3. Set up your Facebook Catalog

The next step is to create a Facebook Catalog which will contain all the information about your products that will be used when advertising your products with dynamic ads.

To create the Catalog, go to Facebook Business Manager > Assets > Catalogs and then choose the type of Catalog most relevant for your business.

Next, choose a name for your Catalog and click on Create. You will now need to connect the product feed (which you’ve created earlier) to the Catalog by going to View Catalog > Data sources > Add data source > Set a schedule and then paste the URL of your product feed in the Add a data feed URL section.

Finally, choose an update schedule for your feed, the feed name, and the currency you use and click Upload.

After your product feed is uploaded, you will need to connect an event source by clicking the Connect event source button and choosing the correct Facebook Pixel.

Now you’re finally ready to create your ad campaign.

4.Create your dynamic product ads campaign

To create a dynamic product ads campaign, go to Ads Manager > Create > Select quick creation. Type in your campaign name, choose Auction as the Buying Type and Catalog sales as the campaign objective. Finally, type in a name for your ad set and click Save draft.

Change budget optimization

To set your campaign budget, turn on Budget optimization and set a campaign budget that you can afford.

Set up your ad set

Set up your ad set by going to Ads manager > Ad sets, checking the checkbox next to the ad set’s name and clicking on the pencil icon.

Here, you will need to choose the products that you want to promote, set the budget, and choose a schedule and audience. If this is your first time creating dynamic ads, select Automatic Placements in the Placements section.

Create ad

Go to Ads Manager > Ads tab > Ad checkbox > Pencil icon. Here you will select your Facebook page and ad creative and add any customizations.


 

 

After you’ve customized the ad to your liking, click Publish.

Congratulations, you’ve created your first dynamic product ad!

How To Optimize Dynamic Product Ads

There are a number of things that you can do to optimize your dynamic product ads. Here are some tips to help you get the best results when using dynamic ads:

Use separate ad sets for Viewed and Added to Cart audiences

Since the default audience for dynamic product ads is Viewed or Added to Cart, most people leave it at that without much thought. In most cases, you’re better of using the Custom Combination option.
 

While Viewed audiences might be interested in your products, people who’ve actually added products to their cart have shown much stronger purchasing intent and should be served different ad copy.

Visitors who haven’t added a product to their cart might need more information (such as reviews) to convince them to add the product to their cart. On the other hand, shoppers who’ve added a product to their cart but haven’t completed checkout might respond well to being offered a discount code.

Control ad frequency

Many advertisers keep the same ads running for too long because they are profitable. However, this often leads to the audience getting annoyed with the ads, resulting in lower click-through rates, and higher cost-per-click.

Running ads that are annoying your audience can seriously harm your brand image. To prevent this, monitor your ad frequency and optimize once it gets too high. A good rule of thumb is to keep your overall ad frequency around 1.

Keep an eye on bidding

Different goals require different bidding strategies. For example, if you’re bidding for purchases and using a one-day click window, your ad frequency will be very high. In this situation, you should opt for using a bigger time window to reduce frequency.

Change the time window

A time window that is too small can be the reason for high ad frequencies. You will need to experiment with a bigger time window (7, 14, or 21 days) until you manage to lower the frequency to an acceptable amount.

Retarget customers for a maximum of 30 days

The impulse to purchase a product is strongest at the beginning, when a shopper first discovers the product. If more than 30 days have passed since the shopper viewed the product and they still haven’t purchased it, they are most likely no longer interested. In most cases, continuing to remarket to such shoppers is a waste of ad budget.

Change the ad copy

Even though dynamic product ads are by nature very visual, you still need to consider your ad copy and optimize it for best results. Facebook recommends considering the following tips when creating your ad copy:

  • Tie your text to your visual - Your ad copy and image should complement each other.

  • Create different ads for different people - Use separate ads to optimize your message for each audience segment.

  • Speak to your audience - Write your ad copy as if you’re directly speaking to a member of your target audience.

  • Be recognizable - Make sure to match your tone across all channels so your audience can readily recognize your message.

  • Keep it short and sweet - Decide what message you want to deliver and try to deliver it as succinctly as possible.

  • Use a single call-to-action - Don’t confuse shoppers with multiple CTAs in your ad copy but rather decide on a single one (e.g. Shop now!)

  • List the price - Mention the price of the product in your ad copy.

  • Include a timeframe - Add a sense of urgency to your offer by using words such as “today” or now” in your ad copy.

Utilize product sets

If you have multiple product lines, consider creating product sets for each of your product lines. You can use product sets to filter products by category or price and create dynamic ads to run special offers (e.g. discounts) on certain product categories. You can also test different ad copies for each product set to see which one performs better.

Test different placements

You don’t have to settle for using automatic placements all the time. Test how your ads perform in the desktop newsfeed, the mobile newsfeed, and the right column, and see which placements are the most profitable for you.

Get rid of non-performers

If some of your products don’t seem to sell no matter what you do, remove them from your product feed completely so you can dedicate more of your ad budget to advertising products that perform well.

Facebook Dynamic Product Ad Strategies

Depending on your goals and the type of products you sell, there are a number of dynamic product ad strategies that you can use. Here are a few to get you started:

Use personalized product recommendations

When remarketing to shoppers, show them not only the products they previously viewed, but also any related products that you sell. Related products can help shoppers find a suitable alternative in case the product they initially viewed wasn’t completely to their liking.

Leverage abandoned cart content

Adding a product to a cart is a sign of strong purchase intent. Use abandoned cart content in your ads to remind shoppers what they left behind. Consider including a discount code in the ad copy to nudge indecisive customers towards making a purchase.

Target customers post-purchase

To maximize customer lifetime value, try targeting recent customers with products that are relevant to their last purchase. These can either be complementary products or similar products in a different price range.

Conclusion

Facebook Dynamic Product Ads provide a more personalized way to reach your customers with advertising. They are a great solution for automated segment retargeting. Even though dynamic ads are automated, they still need to be carefully monitored. Look out for ads with high frequency, high cost-per-click, or low relevance scores and make sure to stop them before they do more harm.