Marketing

The Power of Facebook Dynamic Ads: What is It and How It Works?

Have you ever been scared when, after conducting a flight search for March, Facebook begins to show you (seconds later) a carousel of flight offers for the exact same dates? You are the target of a retargeting campaign! And, specifically, the advertising company used a dynamic ad or dynamic ad to reach you.

What is a dynamic ad?

It is a type of Facebook Ads format that allows a brand to advertise the products in its catalog in a personalized and automatic way. Its main objective is to achieve sales of a product/service or app downloads. It is also compatible with awareness objectives, for example, in the case of vehicle promotion.

OR

They are an advertising format specifically designed for the recovery of users who have visited an online store before entering Facebook. Although it does not look very different from the ads we generally use, Facebook dynamic ads allow every user on the social network to display customized ads, including the products they are interested in but do not come to buy.

Thus, when someone visits Facebook after viewing products in an eCommerce, they will be shown ads for the exact same products they saw. Also, dynamic Facebook ads can stop appearing if the user completes their purchase.

HOW DYNAMIC ADVERTISEMENTS WORK

Exchange with products in the catalog is the essential step in working dynamic ads related to events that the user performed on the website or app). In other words, if the objective of a business is for users to buy a product X, the dynamic ad must be associated with the event “purchase that product“.

In this way, the dynamic ads in your campaign learn from the user’s behavior and show them the ads according to their interests. Therefore, the dynamic ad works as follows:

  • You have an online product catalog that you are interested in promoting on Facebook, Instagram, and social networks for a sale/promotion/download purpose.
  • You upload your updated catalog to Facebook, either in an XML that is updated every day or with a file.
  • You create a campaign with the conversion goal “Catalog sales”. 
  • Ads are automatically shown to users based on their behavior on your website or app (if they have interacted, if they have added a product to the cart, or if they have clicked somewhere). The ads are shown with the images and information that you have entered when uploading your catalog.

BENEFITS OF FACEBOOK ADS DYNAMIC ADS

As we have mentioned, the dynamic ad format is an effective and fast method of remarketing campaigns to promote your business on Facebook. But what are its main benefits?

  1. Search for potential buyers: The system automatically detects the interest of potential buyers of a product or service, since it has previously analyzed their behavior on your website, app, or other places on the Internet. For example, if a user has been looking for beauty products, the system perceives it as suitable to show your ads of the same nature.
  2. Help finalize purchases: These types of ads help convince undecided users to complete the purchase process. How? The correct pixel configuration in the campaign detects when a user leaves an item in the shopping cart.
  3. Inform about new or complementary products: Through cross-selling, you can encourage the purchase of products from different categories. For example, if a user has bought a dress from a luxury brand, they will be more willing to purchase a high-end bag.
  4. Broadcast on different channels and devices: Dynamic ads are shown on Facebook, Instagram, social network, and on any device: smartphones, computers, and tablets, no matter where the user performed the action.
  5. Automatic Updates: This type of ad allows us to upload articles from a catalog through a single upload (if prices or stock do not vary much) or with scheduled recurring uploads, in which you have to indicate the location of the file on your website that will be updated once a day with the price, SKU stock, information, etc.

IN WHICH SECTORS CAN IT BE INTEGRATED (Facebook Dynamic Ads Example)

Depending on the sector of your business, we give you some recommendations to create a good ad on Facebook ads with this type of format:

  • E-commerce- All brands that have an online store can optimize their Facebook Ads campaigns with these types of ads.
  • Travel- If a person has been looking for their next destination but has not yet decided on one, with these types of ads you can show them interesting advertising according to the dates they have been looking for or other information. Like the travel sector in terms of flights, hotels, or hostels can impact with dynamic ads showing relevant details about availability on the dates previously searched by the user.
  • Real estate- If your business is based on the purchase and rental of properties, dynamic ads will reach those interested in this topic, and thanks to its customization, you can offer them products according to the desired neighborhood, price, or square meters.
  • Automotive- This ad format is beneficial for promoting the ideal car models for each potential customer. Since you do not have a sales objective, you must have a detailed description that includes the model, year of manufacture, vehicle make, etc. The target, in this case, will not be the direct purchase, but to awaken more interest in the buyer or to get them to fill out a form (lead).

Another interesting point about dynamic Facebook ads is the possibility of combining the usual parameters of Ads (demographics, interests …) with the most advanced segmentation offered by the system.

What do you think of this type of ad format? Do you think they are effective for more sectors than the ones we have detailed? Take advantage of facebook dynamic ads best practices and tell us about your experience!

A post by Ankush Mahajan (3 Posts)

Ankush Mahajan is author at LeraBlog. The author's views are entirely their own and may not reflect the views and opinions of LeraBlog staff.