Facebook Ads is a very powerful platform for marketers. However, compared to keyword-based advertising on search engines, Facebook Ads cannot determine purchasing intent because users don’t normally go on Facebook to search for things to buy.
Facebook came up with a way to circumvent this inherent weakness by introducing dynamic ads. Many advertisers have been won over by the impressive results they get from dynamic ads as compared to the usual static ads.
In this guide, we’re going to be showing you how you too can boost your profits using Facebook dynamic ads!
What Are Dynamic Ads?
Dynamic ads are simply automated Facebook Ads. Other marketing experts call it ‘retargeting ads on steroids.’ It targets people who have been on your website or app and serves them ads based on what they’ve been doing on your web property. The Facebook pixel tracks their actions, and when they go on Facebook, your dynamic ads will then come into play in a completely automated manner.
If you have an online store and you’re selling tens of thousands of products, instead of creating an advert for each product, you can simply upload your product catalog to Facebook. Just imagine how many hours you’re saving with dynamic ads!
The only real work you and your team needs to do is just basically make sure your catalog is up to speed and that it contains all relevant details about your products. Once you’ve set up your ad template and defined your budget, then it’s pretty much a hands-off advertising machine!
For example, when a customer views or adds a product to his cart, your pixel tracks that action. When he buys that product, your pixel will know it. So when they go into Facebook, the system will know exactly what that customer has been doing on your website.
If they viewed a product but did not buy it, they’ll see an advert for the very same product on their news feed or wherever you chose to display your dynamic ads. Likewise, if that customer bought that product, they’re NOT going to be seeing an ad for that product on Facebook (that will be very annoying!).
Instead, they’ll see another product on display. And since they already bought from you, they therefore know you and will most likely buy from you again especially if they had a good experience with the first product.
Additionally, dynamic ads help circumvent ad blindness. With so many ads flooding people’s news feeds, it’s not surprising that a lot of people are developing banner ad blindness. But with dynamic ads, your ads are so relevant and so timely (they were just looking at that particular product 10 minutes ago!), people feel more compelled to purchase your ad on the spot!
How To Get Started With Facebook Dynamic Ads
Setting up dynamic ads can be difficult at the beginning. However, if you want to save time and resources in the long run, then you’d need to invest some time (and money), so your dynamic ads will run smoothly in the future.
To get started with dynamic ads, you’d need the following:
1. The Facebook Pixel
If you’ve read our previous guides in this DIY Facebook Ads 2018 series, you’d know that the Facebook pixel is key to generating custom audiences and maximizing your ROI. With dynamic ads, the pixel plays yet another important role in helping you boost your profits even more.
If you’ve already set up the base pixel code on your website, you would now need to edit or modify the custom audience pixel. Dynamic ads require 3 Custom Data events, and you must edit the pixel code for these three events on your website:
Here’s what an example ViewContent pixel event looks like:
If the code looks intimidating, it’s best to get help from an experienced developer to make sure there are no errors in the code.
2. Facebook SDK
If you have a mobile app or are planning to have one, you can integrate the Facebook SDK into your iOS, Android or web app to target your app users with dynamic ads. Just like the Facebook pixel for websites, you would also need to integrate the three required events added to your app (ViewContent, AddToCart, and Purchase).
Here’s an example code for an iOS app event:
If all that alphanumeric code made your head spin, please get the help of a qualified mobile app developer to make sure your dynamic ads will run properly.
3. Business Manager
Getting a business manager account is free and easy to do. You can add pages and ad accounts to your business manager, and assign specific roles to other people. It also makes it easy for you to manage all your assets in one place.
4. Facebook Page
Your business needs to have a Facebook page when you launch dynamic ads. It will represent your business on Facebook.
5. Product Catalog
The Facebook product catalog is the last essential component to make your dynamic ads run successfully. It quite literally is your business’ virtual database on Facebook. It is an inventory of all the products you want to promote on Facebook. You can upload one data feed for all your products, or you can upload multiple data feeds especially if your business operates in more than one country or has multiple divisions.
You can create a catalog by going to your Business Manager Menu > Assets > Catalogs.
These are the different catalog types you can create:
Once you’ve created your catalog, you then need to create a data feed which contains all the information you want to advertise in your dynamic ads. The required item information will vary for each catalog type, and you have to use Facebook’s required format and file type to create a proper data feed.
Now that you know the key requirements to get started with dynamic ads, let’s head into the next section where we’ll discuss how to launch your dynamic ads and the best practices for doing this.
How To Create And Start A Dynamic Ad Campaign
To create a dynamic ad, you need to have all requirements we mentioned in the previous section up and running. Otherwise, you may not be able to finish creating a dynamic ad.
1.The first thing you need to do to create a dynamic ad is to make sure you select Catalog Sales as your marketing or campaign objective.
2. In the next section, select the Catalog you want to use and name your Campaign name (or you can use the default name).
3. Follow the next steps to set up your ad set. Choose the correct product set that you want to advertise. Then set up your audience (who you want to show the ads to), the placement (where your dynamic ads will be shown), your budget (how much you want to spend per day or for the lifetime of your campaign), and your schedule (how long you want the campaign to run).
4. In the ad section, set up your ad’s format. You can choose to use a carousel ad, a single image ad, or a collection ad.
5. Lastly, in the Links section, set up your ad creative template and preview how your dynamic ad is going to look like. Here’s a sample preview:
Double check your work and make sure you’re happy with how your dynamic ads are going to look like. Again, your ads are going to be served dynamically and automatically, so you need to make sure all the elements of a good ad are still in place in your catalog’s data feed.
How Facebook Dynamic Ads Can Boost Your Profits
Remarket targeting is a powerful advertising strategy on its own since you’re targeting a ‘warm’ or ‘hot’ audience. With Facebook dynamic ads, you not only retarget these audiences, but you’re also showing them dynamic ads that are relevant to what they’ve been doing on your website or app!
Aside from this main benefit, let’s go through a few more points how dynamic ads can boost your profits:
1. You spend less time creating and editing ads.
With dynamic ads, you only need to create your ad once. You define the product variables you want to use in your ad, and Facebook will automatically pull the data from your data feed.
You don’t need to set up a reminder on your calendar to help remind you that you need to update the pricing on some of your ads – you can simply edit your data feed, and Facebook will then use your new data.
If you want to update a product image, simply update the link in the data feed. You also don’t need to manually update the inventory levels so if you run out of stock, your pixel will know it and Facebook won’t serve up a dynamic ad of that particular product.
2. Spend more time growing your business.
Dynamic ads will help you grow your business in a hands-off manner. Once you’ve set up your catalog and your ad creative, you pretty much have a lot of free time on your hands. You can use that to look for new avenues or platforms to reach your target audience.
Since dynamic ads basically cater to people who’ve interacted with your business, you can then focus on reaching out to ‘cold’ audiences or people who haven’t interacted with your site or app before.
3. Offer personalized recommendations.
Since the Facebook pixel can track your customer’s actions on your site or app, your ad will dynamically show the product your customer was looking at or added it to their cart but did not buy. For those who already bought an item from you, your dynamic ad won’t show them the same product. Rather, your dynamic ad will upsell or cross-sell a different product.
4. Improve your conversion rates.
Ideally, you’d want 100% conversion rate on your ads. But doing this is near to impossible as there are far too many factors that come into play during the buying process. Facebook’s retargeting system helped conversion rates go up for many advertisers. But with dynamic ads, it’s taken retargeting to an entirely different level, and many advertisers are reporting impressive conversion rates and massive profits!
Facebook dynamic ads are a step-up from retarget marketing. However, not everyone can create dynamic ad campaigns. For now, this option is only available to businesses who have an inventory of products to sell.
If you’re selling one or two products, you can still remarket to your customers, just not at the scale and ease of dynamic ads.
Now, if you want to know techniques to lower your ad spend, read our the next guide.