The Magic of Facebook Dynamic Product Ads ✨

A potential customer enters your eCommerce store and views a few products. Then, they even add a product or two to their cart. But, just before completing the purchase, the baby starts crying, and they have to abandon the items in the cart and leave your site.

Tough luck, right?

But, you don’t have to lose this potential customer! There’s a way you can remind them of the item they left in their abandoned cart and help them complete the desired purchase: Facebook Dynamic Product Ads (DPA).

This is a wonderful tool for both dynamic retargeting and acquisition, which you just can’t overlook. And in this article, I’m going to tell you all about it.

What are Facebook Dynamic Product Ads?

If you're not aware, Facebook Dynamic Product Ads (DPAs) have undergone a name change. They're now called Meta Advantage+ catalog ads.

This powerful tool lets you target people who visited your online store and viewed your products but haven’t completed the purchase. These potential customers, often referred to as warm audiences, are a valuable opportunity for conversion, and all it takes is a gentle nudge to encourage them to complete their purchase.

That’s exactly what Meta Advantage+ catalog ads allow you to do. They are customized ad templates you can create and use for each of your products. This allows you to target your store visitors with the exact product they viewed, serving as a reminder to complete their purchase.

The beauty of these ads lies in their dynamic nature. Instead of creating tens or hundreds of individual product ads, you can create a single template and use DPAs to automatically show tailor-made ads to your target audience, containing specific products from your data feed. 

This is how Facebook’s dynamic ads work:

1. Meta tracks user activity: When a potential customer visits your online store and views a product, their actions are tracked by the Meta Pixel and Conversions API.
2. The dynamic ads system enables you to serve personalized ads: It uses the above data to create ads that feature the exact product that the potential customer viewed on your site.
3. Potential customers will see these ads: These personalized ads are displayed to them when they use Facebook or other platforms within the Meta network. They will remind them of the products they viewed but didn’t purchase, along with other relevant products.
4. This encourages conversion: By showing them the exact product they are interested in, these ads serve as a nudge, saying: “Hey! Remember this product that you liked? Don’t forget to snap it up!”

See why the precision and efficiency of Facebook Dynamic Product Ads make it an ace card for advertisers and e-commerce business owners ​​♠️

Now, if you're like me, you've probably found yourself scratching your head over how Advantage+ campaigns and dynamic creative optimization (DCO) differ from dynamic product ads. Let's quickly clear the confusion before moving forward:

Dynamic Creative Optimization (DCO): 

While Facebook’s Dynamic Creative Optimization and Dynamic Ads can both show different ads to different people, the key difference lies in what they change and how they do it.

Dynamic ads are like a personal shopper who already knows your taste. It shows you products that it knows you might like because you’ve checked them out on a website in the past.

Dynamic Creative Optimization, on the other hand, is more like a chef who can create a variety of dishes using different combinations of ingredients. The ‘ingredients’ here are the different parts of an ad like images, text, videos, audio, and calls to action. 

DCO is responsible for mixing and matching these ingredients to create a unique ad specially crafted for each viewer. The tool will create the most appealing ad based on the viewer's data like browsing history, shopping habits, and demographic information.

Advantage+ campaigns:

These are automated campaigns by Meta that optimize your ads. They're specially designed to drive online sales and app installs with minimal effort and maximum efficiency with the help of machine learning. They automatically test and deliver high-performing ads so you can run efficient campaigns effortlessly.

These campaigns allow you to create a catalog with all your products and create one campaign that drives sales on your website or app. The ads can either be single-image ads, carousels, or collection ads on Facebook, Instagram, and Audience Network.

With Advantage+ campaigns, you have two targeting options that reach your customers across different stages of the buying journey. 

You can reach broad audiences which are consumers who have not yet purchased from you or visited your website but may have shown interest in similar products or services to those you are offering. You can also retarget and reach consumers who have expressed interest in specific products on your website or app and encourage them to complete the action.

Unlike Advantage+ campaigns, Facebook Dynamic Product Ads only target one type of audience: those who have already shown active interest in your products.

Phew! Hope you managed to take that all in.

The benefits of dynamic product ads

Alright, now let's get into WHY you should be using Facebook’s Dynamic Product Ads:

• Target high-intent audiences: Dynamic product ads allow you to target specific products to highly engaged audiences at the most opportune moments, resulting in remarkably high ROAS and increased clicks and conversions.
• Recover lost sales: By reminding people of products they recently viewed, helping to recapture potential purchases that may have been almost forgotten.
• Cross-selling: When showing potential customers products in which they have shown interest, we can also present other products that they may find interesting.
• Efficient ad creation: Using just a single ad template, you can effortlessly generate numerous customized ads tailored to individuals who have engaged with your store across various Meta’s network of apps.
• Proven effectiveness: Companies like Target and Shutterfly have experienced significant benefits from utilizing Dynamic Ads, with Target seeing a 20% increase in conversions and Shutterfly witnessing over a 20% increase in CTR.

Now that you know all the great benefits of Facebook’s Dynamic Product Ads, you’re probably eager to get going with your first Dynamic Ads campaign. 

But first things first, before you start:

1. Install a Facebook Pixel on your website

You can find a step-by-step guide explaining how to do it right here. Then, you simply need to install it on your website, which can be done manually or using a plugin.

2. Create your Product Catalog

The Product Catalog creation process starts with your product feed. This is a list of all the products in your inventory, which need to be sent to Facebook.

There are two ways to provide Facebook with your product list - manually or using a plugin. You can either create a CSV/TSV/XML file containing all the necessary information and upload it to Facebook, or use a plugin that will automate the process for you, such as Flexify for Shopify users. If you choose to do it manually, follow Facebook’s specifications.

To create the Product Catalog, follow these steps:

a) In the Meta Business Suite, click on the ‘All tools’ hamburger menu on the bottom left. Then, navigate to ‘Commerce Manager.’

b) Next, click on ‘Add catalog.’

c) From there, select the right catalog type for your business.

d) Now, you need to name your new catalog and select your upload method - manual or using your eCommerce platform. Plugins are available for Shopify, BigCommerce, Magento, OpenCart, and WooCommerce.

e) Click 'Create' and we can move on to setting up your product sets.

3. Segment the products into product sets

If you have a huge collection of products, and even if not, it may be very useful to divide your products into different sets.

This feature is mainly helpful when targeting broad audiences for acquisition. For example, you can create specific sets containing your top products for up- or cross-selling to increase your revenue. In addition, you can use different sets for various product lines or for special sales, such as Black Friday/Cyber Monday offers.

Let’s go step-by-step through the process of creating a product set:

a) Go to the Commerce Manager and select ‘Sets’ from the left-side menu.

b) Then, click ‘Create set,’ and select whether you want to use filters or manually select items.

c) Next, name your new product set. You can segment your products based on brand, price, star rating, and more.

d) Click 'Create' and let’s get down to business and create your first Dynamic Ad campaign.

How can I create dynamic product ads on Facebook?

1. Go to the Meta Ads Manager and in the Campaign tab, click the green 'Create' button.

2. Select your campaign objective. For the sake of this blog, I have selected ‘Sales’ as my objective, but you can choose different objectives, of course. Note that the setup will be slightly different for different objectives. Afterward, give your campaign an indicative name and click ‘Continue.’

3. Choose the manual campaign setup and click ‘Continue.’

4. Then, give your campaign a name. If your ads are related to housing, credit, employment, social issues, elections, or politics, you need to select the ad category from the options. If your campaign doesn’t fall under a special ads category, click ‘Next’ and move to the next section.

5. Now, switch the toggle on to use a catalog. Then, select your preferred catalog from the dropdown arrow menu. As you can see, I’ve chosen my Shopify store catalog.

6. Name your ad set and add your performance goals.

7. Select a product set from your catalog.

8. Then, choose your audience type and adjust your audience location if need be. You can either retarget existing customers or store visitors, or, target a broader audience to attract new potential customers. Once you have made your choice, go ahead and click ‘Next.’

9. Now, you need to select between Single Image or video, Carousel, and Collection formats. Carousel ads are more commonly used for Dynamic Product Ads and they allow you to add an attractive video as the opening card. Collection ads appear only on mobile and provide the user with a full-screen experience showcasing several products at the same time.

10. This is your opportunity to write a catchy headline, primary text, call to action, etc. Additionally, you can utilize Advantage+ creative to add enhancements to your creatives.

11. You’re ready to hit ‘Publish.’

And that’s it, your first Dynamic Product Ad is ready! ✨

Facebook dynamic product ads best practices

Get your notebook ready! These tips will set your dynamic product ads up for maximum conversions 💸

#1 Start with retargeting: While dynamic ads can serve various marketing objectives, Facebook suggests starting with retargeting because these ads are powerful reminders for potential customers to make the purchase.

#2 Select the correct conversion events: Identify the correct conversion events so that your dynamic ads campaign can target and optimize for the actions you care about. 

Be sure to add the ‘View Content’ events to all product pages, the ‘Add To Cart’ event to all your shopping cart pages, and the 'Purchase' event to the purchase or 'Thank You' page.

#3 Create cross-sell campaigns: Recent purchasers already know and like your brand, which makes them likely to repurchase. Create a cross-sell campaign and show them other products they might like.

#4 Invest in your creatives: Facebook DPAs require an extensive catalog to showcase multiple products across diverse audience segments. Consistently investing in a top-notch creative bank is essential for maximizing their effectiveness and avoiding ad fatigue, despite the associated high production costs. 

This is why business owners are seeking cost-effective production solutions such as Madgicx's Creative Workflow to help them meet their advertising needs, helping them consistently create converting Meta ads.

You don't even need to know which creative direction to take. With the Creative Workflow, you can begin by exploring and saving Meta ad inspiration in the Madgicx Ad Library. Then, simply submit a brief along with your ad inspiration through Sparkle. One of our talented designers will be assigned to your request, ensuring your ads come to life in just 48 hours.

Once you've given your approval, your ads are automatically uploaded to Meta Ads Manager, allowing you to launch them from there or directly via Madgicx. You can even test the waters for free ($0 trial).

Inspiring dynamic product ad examples

1. Pedersen + Lennard

Why it works:

The product takes center stage: Pederson + Lennard isn't just telling you they have great products; they're showing you. Every slide demonstrates how the product would comfortably fit into your home or lifestyle. This is an approach that any product or service can learn from.

Simple and straightforward USPs: The advertisement efficiently communicates the unique selling points of the product, enabling consumers to quickly understand their options and what they stand to gain from the product. 

Soft sign-off: They include a message that resonates with the emotions of their audience: "Gather, revel, relax." Who doesn’t want that?

2. Burger King

Why it works:

Commands attention: This dynamic ad mixes massive product shots in closeups across multiple slides accompanied by large, dominating text. Against a red background, it's impossible to ignore this boldness on your timeline.

Alliteration adds appeal: Alliteration is enjoyable to read as it flows smoothly and emphasizes the point. Just say 'Fierce flavor. Fierce satisfaction. Fierce Whopper.' and tell me that didn't make you a little hungry? ​​😏

‍Location, location, location: The last-ish slide simply displays a map of where I live along with a location pin placed at my nearest Burger King. This map would change in real time based on where your customers are and the closest place they can purchase your product or service. Pretty clever, right?

3. Kruger Shalati

Why it works:

Paints a full picture: Ad or itinerary? Both! This Dynamic Product Ad features over 7 slides, each showcasing the full experience offering. With the experience laid out so clearly, you know exactly what to expect.

‍Call to action: Personally, I think the ad does a stellar job of luring you in and giving you a taste of the experience. So let's be real, they could've gone for the jugular with a 'Book Now' instead of the gentler 'Learn More.' Just saying 😉

4. Orial Outdoor

Why it works:

Product-centric design: The product takes center stage in every carousel slide—no distractions, the backpack speaks for itself. 

Short ‘n sweet USPs: Right off the bat, you know it's 100% waterproof, available in 7 colors, and 30L in size. People can quickly know exactly what they can expect from the product.

Low barrier to ownership: They make it super easy to own the product with the 'buy now pay later' offering, leaving potential customers with no excuse not to get one for themselves.

Wrapping up

As you can see, Dynamic Ads on Facebook have changed the game for eCommerce businesses. They target the most profitable and “warmest” audiences with highly personalized ads.

Now you’re equipped to set up your product Facebook catalog and launch Dynamic Ad campaigns with zero-headache creative production solutions like Madgicx’s Creative Workflow. I've also provided you with tips and tricks to help you maximize the effectiveness of your ads.

You’re all set to boost your sales and conversion rate with Facebook Dynamic Ads. 

Good luck, and stay dynamic!