Facebook Dynamic Ads
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For some years now, Facebook ads have been a potent tool for ecommerce brands. But as Facebook advertising has been more widely available to businesses of all sizes, so too fights for customers’ attention. It’s not surprising that many people wonder whether Facebook advertising is actually worth the money when you consider the increasing uncertainty from social networks. “Facebook Dynamic Ads“.

Personalization, however, is a more potent technique that may increase both the efficacy of your ads and your return on investment (ROI).

Giving your clients current, pertinent information is a crucial component of developing marketing strategies that are successful in grabbing their attention and keeping them coming back to your online store.

Facebook’s Dynamic product ads can let you achieve just that.

What is a dynamic product ad?

Dynamic product advertising is a method of displaying single or multi-product Facebook ads to consumers who have already visited your website, including products that Facebook already knows your customers are interested in based on their activity.

dynamic product ad

Image credit: Facebook

Dynamic product advertisements enable you to offer adverts to your consumers that feature the specific products they wish to view. Dynamic product ads, powered by the Meta pixel, use behavioral information about website visitors to determine which products should be promoted in your various forms of Facebook ads.

Because website visitors who are offered retargeted ads are 70% more likely to convert, this approach, also known as retargeting, is a very successful way to convert one-time window shoppers into loyal consumers.

This procedure is made much easier when you set up Shopify’s Facebook channel. Your products sync to your Facebook account’s product catalog, which you can then use to promote your store and the products in your catalog when you create dynamic ads. Using this seamless interface, you can also halt dynamic ads and see analytics.

Why use Facebook dynamic product ads?

You may target three different client behaviors with dynamic product ads:

  • Viewed content: After a consumer visits a product page on your shop, you may start showing them advertising for the same product to entice them to look again.
  • Add to cart: If a consumer adds a product to their basket but does not finish the transaction, you may offer them adverts that particularly promote that product, nudging them back to your site to complete the sale.
  • Product purchase: After a consumer successfully purchases a product, you may send them advertising with related products, upsells, new arrivals, and anything else that may be of interest to them based on their purchase history.

The products highlighted in the ad are completely affected by what your consumers have previously looked at, showed interest in, or purchased, making dynamic product ads a highly customized method to engage with your customers and present the things they want to see.

Dynamic product ads not only offer a layer of personalization to your campaigns but also save you time and effort by allowing you to provide highly relevant Facebook ads to your clients without having to create hundreds of distinct ads for all of the products on your website.

How 3 Shopify stores are using dynamic product ads to grow ecommerce sales

Take a cue from these real-world examples of Shopify retailers that have found success with Facebook dynamic ads.

1. Allbirds

Allbirds, a sustainable footwear business, utilized Facebook dynamic ads to market their Dashers running shoes, a new product range. It targeted consumers who saw an early wave of product advertising and clicked Shop Now but did not make a purchase.

Allbirds

The brand chose to put its strategy to the test with four distinct ad creatives, focusing on:

  • A combination of the above
  • The innovation in the product’s design and features
  • Product benefits and how they fit into people’s lives
  • Brand narrative and repeating the materials and design’s quality

Allbirds tried two message overlays: “Natural materials made to perform” and “Performance has done naturally.”

Allbirds

Facebook presented advertising to individuals automatically, gradually altering which ad creative to show to achieve the biggest effect at the lowest expense. Overall, Allbirds resulted in a 48% increase in purchases.

2. Chi Chi London

Chi Chi London, a women’s apparel brand, has experienced success using Facebook dynamic ads. Its overall purpose was to improve revenue from both new and existing clients. It had previously set up retargeting ads for people who visited its website, mobile app, and social media commerce channels. Chi Chi London uses dynamic ads to perform A/B testing to determine the most effective ad structure and creativity.

Chi Chi London 1

While the retargeting advertising was effective in reaching the brand’s existing audience, it used a similar strategy to attract new consumers. Rather than retargeting ads, the dynamic ads drew on the brand’s product catalog to build an ad campaign that targeted a broad demographic. Broad audiences on Facebook include persons who may have seen or been exposed to the brand but did not visit the website, app, or product pages. Broad audience targeting retrieves products from the product catalog automatically depending on what the consumer is likely to be interested in.

Finally, the brand’s broad audience targeting enabled it to improve revenues by 40% while decreasing “cost per action” by 29%.

3. Kortni Jeane

Kortni Jeane, a Shopify merchant, has also had success with Facebook dynamic ads. The mix-and-match women’s swimsuit brand sought to jumpstart its seasonal sales with a boost from Facebook marketing, which was especially essential following a poor 2020 because of the epidemic. It planned to run a week-long campaign with new product drops every morning to generate buzz and enthusiasm.

Kortni Jeane 1

The creative included picture and video advertising with eye-catching imagery and product-focused content. The brand employed dynamic ads, as well as Custom Audiences and Lookalike Audiences, to target broad audiences and new prospective buyers who have previously connected with the brand, its products, or comparable brands and products. Dynamic advertising was created with the use of the brand’s product catalog and pixel on its website. For cost-effectiveness across channels, applications, and services, the brand also employed Facebook’s automated optimization.

Kortni Jeane 2

Kortni Jeane increased their conversion rate by 11% and generated a 22.9 times return on ad expenditure across 2,000 sales as a consequence.

How to set up Facebook dynamic ads

While creating dynamic product commercials may appear overwhelming at first, it is pretty simple. We’ve put up a step-by-step tutorial to help you create your first set of dynamic product ads.

Let’s take a look.

1. Upload your product catalog to Facebook

To create your first dynamic ad, utilize Business Manager to transfer the product catalog from your online store to Facebook.

Your product catalog is a data file that contains a list of all the products from your business that you want to see in Facebook ads.

facebook dynamic ads step 1

Facebook dynamic product ads To begin, log in to your Business Manager account. Click Business Manager in the top left of the navigation bar, followed by Product Catalogs under the Assets heading.

facebook dynamic ads step 2

Facebook dynamic product ads Now, pick Create New Product Catalog from the dropdown menu when you click Add New Product Catalog.

facebook dynamic ads step 3

Give your product catalog a name (it’s best to use the name of your shop) and then click Create Product Catalog.

After you’ve built your product catalog, you’ll need to add a product feed so that your catalog can generate product listings automatically.

A product feed is a list of your online store’s products. You may construct various product feeds to reflect distinct product categories from your online store, such as products that are only accessible in particular locations or products that target to specific demographics.

product catalog example facebook

Image credit: Facebook

Before we proceed, you must first set up a product feed for your online business. Product feeds are simply spreadsheets that list all of your product’s data. CSV, TSV, RSS XML, and ATOM XML files are all acceptable.

If you have a Shopify store, you can set up your product feed using the Shopify App Store’s Facebook Product Feed app. You may also do this through your administrator. When you locate Facebook in the Shopify App Store, click Add Channel and then Start Set Up for the functionality you wish to install. Sign in to your Facebook page, link your Facebook assets, accept the terms and conditions, and then click Finish Setup.

To function successfully, your product feed must adhere to stringent formatting rules and contain a set of needed fields. Take a look at the example feeds provided by Facebook’s support team to get a better understanding of how you should build up your product feed.

Following the creation of your product feed, you must host it through FTP or upload it to a cloud storage service such as Dropbox or Google Drive. If you utilize the Facebook Product Feed app, you won’t have to host it elsewhere because the app will do it for you.

facebook dynamic ads step 4

Facebook dynamic product ads Once your product feed has been uploaded to the cloud, navigate to Product Catalogs and select Add Product Feed.

facebook dynamic ads step 5

After that, you’ll be able to name your product feed, change the currency, and select an upload type for your feed. Schedule Recurring Uploads and Single Upload are the two possibilities.

You may add a product feed to recurring uploads and have it update anytime modifications are made or new products are added. You will only be able to add a static product feed with one upload, and you will need to manually update your feed in the future.

Let’s choose Schedule Recurring Uploads for this walkthrough. When you’re ready to proceed, click Next.

facebook dynamic ads step 6

Schedule how often you want your feed to update—daily or weekly—and enter the URL of your feed (the Dropbox, Google Drive, or FTP link for your spreadsheet) so Facebook knows where to get your product information.

For Facebook Product Feed app users, just log in to the app and copy and paste your automatically created product feed URL (it will look something like this: http://your-store-name-here.myshopify.com/a/feed/facebook.rss).

To provide Facebook access to the file, enter the login details for your storage account (if necessary). Click the Upload button.

Your product catalog is now complete.

2. Set up your Meta pixel

To assist Facebook in determining which of your products to offer to which audiences, install the Meta pixel on your website and configure it so that it monitors when products from your product catalog are browsed, added to the cart, or purchased by your consumers.

If you’re unfamiliar with pixels, consider this simple example:

They are little pieces of code that you install to your website to track your visitors. The information they collect about your visitors can be used to retarget them in the future and track their behavior when they return to your site.

Pixels may appear to be perplexing at first, but they are a critical tool for measuring the performance of your marketing initiatives.

facebook dynamic ads step 7

Go to your Business Manager to locate your pixel. Select Pixels under the Assets header by clicking Business Manager in the upper left of the navigation bar.

facebook dynamic ads step 8

If you haven’t created a pixel before, click Create a Pixel.

facebook dynamic ads step 9

Name your pixel and click Create Pixel.

facebook dynamic ads step 10

If you have a Shopify store, just copy your 15-digit pixel ID and go to the Shopify Admin. Click Settings, then Online Store, and then copy and paste your pixel ID into the Meta Pixel area.

Save the file. Your pixel will now be configured to function with dynamic product ads.

facebook dynamic ads step 11

If you do not have a Shopify store, you must manually set up standard events for your Meta pixel so that Facebook can track the following three actions: View Content, Add to Cart, and Purchase.

After you’ve set up your standard events, you’ll need to make changes to your website’s HTML/CSS. To finish setting up your pixel, copy and paste your code between the tags on every page of your site. If you encounter problems with your pixel, utilize the Meta Pixel Helper to locate the root of the issue.

3. Create your first dynamic product ad

Go to your Facebook Business Manager, which is effectively your ads manager, and build your first dynamic product ad. Select Catalog Sales under Conversion as your aim and click Create Campaign. Click the Continue button.

campaign objective

Give your ad campaign, ad set, and ad a name. Use a descriptive description for your campaign so you can readily recognize it afterward (for example, if you want to target all consumers who have seen mugs on your website, you might call it “Dynamic Ads – View Content – Mugs”).

campaign name

You can also choose whether to A/B test these ads or utilize Facebook’s Advantage Campaign Budget option for automatic ad spend optimization.

a/b test

Check that the Catalog sale is still chosen as your campaign goal, then click Next.

Make changes to your ad set to ensure it promotes the relevant product catalog. Check that everything is in order, then choose your budget, audience, location, placement, and other targeting choices.

budget

Selecting the Add button under Promoted Products in your ad set will allow you to explicitly choose the products you want your advertising to display, commonly known as a “Product Set.”

Product Set

You may narrow down your product collection by Availability, Brand, Category, Product Type, and Price, allowing you to build better-focused advertising with more relevant ad language. Based on how you’ve configured your product catalog, these filters will automatically categorize your products.

create a set

After you’ve completed configuring your product set products, click Create. This product set may now be used to fill the products that will show in this ad set.

finished customizing its products

After creating a product set, head down to the Audience section.

Audience

You may choose whether you want to reach customers who have previously browsed material on your website, added things to their basket, or successfully purchased products. The Meta pixel has happily already generated these custom audiences for you, which is a major relief because they would be extremely time-consuming (and headache-inducing) to set up manually.

You’ll be able to define which product sets you wish to advertise to clients who have already browsed other product sets when selecting an Upsell or Cross-Sell audience. This is a useful tool for converting one-time buyers into repeat customers by displaying related products that they might be interested in or that combine well with products they’ve already purchased.

It’s time to design your ad now that your ad set has been correctly adjusted for dynamic product ads. Go to the Ads tab and either create a new ad or select one from your existing ad package.

Dynamic ads, unlike conventional Facebook ads, need the usage of specific keywords (these keywords are just the section headers that you used for your product feed spreadsheet).

When your ads are displayed, Facebook will be able to automatically populate them with the necessary product information thanks to these keywords.

Here’s an example of a Facebook ad template. When a buyer sees the ad, keywords like “product.name” and “product.description,” as well as the actual product imagery, will be substituted by relevant information collected from your product feed. These keywords just assist Facebook in determining how the ads should appear.

facebook dynamic product ads template

Image credit: Facebook

While each viewer’s product images, names, and descriptions will be unique, the ad content at the top (“Jasper’s is more than simply groceries…”) will be the same for everyone.

When constructing your ad, make sure your content remains relevant and can be used for any products that may appear. You may also experiment with keywords in the ad language at the top, but it’s better to start with dynamic product names, descriptions, and prices.

titles, and descriptions

When revising your ad, click the + button next to each field to enter the keywords you want to use.

You’ll be ready to run your ad once you’ve adjusted your ad wording (and ensured that you’re monitoring conversions with your Meta pixel).

4. Optimize your ads

It is always advisable to iterate and refine advertising and marketing efforts to increase effectiveness and ROI. When it comes to dynamic ads, you should always display the appropriate product to the right audience with the correct messaging. Examine your ad stats to identify which campaigns are working well and which are underperforming in contrast. You may then fine-tune your creative, budgets, and targeting to ensure that you’re putting your best foot forward.

Let’s get personal

Ecommerce companies who benefit the most from Facebook advertising understand how to include optimization and effective targeting into their strategy. With the advertising scene becoming more competitive and costly, it is more critical than ever to integrate and automate as much as possible. You’re already a few steps ahead when you set up the Facebook channel on Shopify.

Now that you’ve learned how to create your first dynamic product ad, it’s time to start providing your consumers with a more customized and relevant Facebook experience!

Facebook dynamic ads FAQ

What are Facebook dynamic product ads?

Facebook dynamic product ads are a means to show single or multi-product Facebook advertising to consumers who have already visited your website, highlighting products that Facebook thinks your customers are interested in based on their activity.

Are Facebook dynamic product ads effective?

Facebook dynamic product advertising is successful and may help brands reduce their ad expenditure. When Facebook dynamic product ads are connected with your ecommerce platform, such as the seamless Facebook-Shopify integration, they become even more effective.

What are the benefits of dynamic ads?

Because of personalization, dynamic advertising provides better ROI and more effective ad expenditure. Furthermore, because most of the process is automated, you won’t have to manually assess and optimize for ad performance.

When should you consider using Facebook dynamic product ads?

If you want to increase sales on your Shopify site, you might think about implementing Facebook dynamic ads.

Where do Facebook dynamic product ads show up?

Facebook dynamic product ads appear across several platforms, including Facebook, Instagram, Marketplace, Messenger, and audience network channels.

How do I create a dynamic product ad on Facebook?

1. Set up your product catalog.
2. Install the Meta pixel.
3. Build your creativity.
4. Select your targeting and budget.
5. Customize your product catalog and which items to promote.
6. Launch your ad.

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