Earlier this year, Facebook announced a new type of ad, Dynamic Product Ads (DPAs), that uses company product catalogs (you can use your Google Shopping feed) to dynamically pull and display whichever products are most relevant to shoppers. While there are a slew of targeting options available with DPAs, at a minimum, you can target users based on products viewed, added to cart or converted. After a few modified Facebook pixels are placed on the site, advertisers build out ad creative shells, or templates, based off the following properties in their feed:
- Current Price
Just recently, Facebook combined their remarketing & conversion pixels into a single universal pixel, making the process of setting up dynamic ads that much easier. Needless to say, with all the changes happening to Facebook advertising these days, we were eager to dive in with our ecommerce clients.
Now that we’ve been running campaigns for a few months with one of our ecommerce clients, we’ve gathered enough data to see some patterns. The most stunning realization was that our DPA campaigns are outperforming our traditional campaigns—sometimes dramatically—on all of our major KPIs: CTR, CPC, CVR, CPA, & ROAS. Even its ability to scale has been impressive.
Here’s some preliminary data comparing our DPAs to Non-DPAs with one client:
The DPA Remarketing ads row includes both multi-product and single product ads (both perform well for us, though multi-product has a slightly higher CTR). The Non-DPA Remarketing ads are traditional newsfeed ads, targeting some of our highest-volume website custom audiences and most popular products. Unfortunately, we weren’t planning on running a true A/B test when we launched these ads, so although the non-DPA campaigns above have comparable targeting (all data is from remarketing campaigns targeting the same locations, genders, and age ranges) and ran during the same date range, these results aren’t perfect. It’s worth noting, since social marketing revenue attribution varies, that the revenue numbers above are based on a 28-day click look back window.
We’ve also had great success with mobile in our DPAs, which is clear in the impression device breakout below. DPAs are cross-device, meaning Facebook can identify site visitors on one device (e.g. desktop) and retarget them on another (e.g. mobile). Though we’re seeing lower CPAs with desktop, mobile offers more traffic volume:
Perhaps a better way to visualize it is to look at conversion volume by device type impression:
iPhone and Android Smartphone impressions combined account for about two-thirds of the conversions, while desktop impressions are responsible for just 21%. These results are promising, since we’ve seen a tremendous amount of growth year over year of potential mobile impression volume. Additionally, the products we’re selling with this client are also fairly expensive; they’re not the type of products users usually purchase on a mobile device, so finding a connection between retargeting on mobile and purchasing on the site is encouraging.
Based on the results we’ve seen so far, I’d recommend that any advertiser still on the fence give DPAs a try. Beyond being an effective way to get traffic efficiently for the client, it’s a tailored experience for customers and a simpler process for advertisers.
If you have questions on how to set up DPAs or strategies, don’t hesitate to contact us.