Dynamic Product Ads – your questions answered

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Nosto – an official partner of Shopware and now Facebook – offers a straightforward and easy way for you to deliver personalised shopping experiences for your customers. Here they lend their expertise regarding Dynamic Product Ads (DPAs); arguably one of the most effective ways for you to retarget your customers.

Have you heard? Facebook’s Dynamic Product Ads are the latest thing to hit the world of online advertising. These ads show shoppers what they’re most likely to be interested in, and therefore buy, based on their previous on-site behavior, purchases and wider interests.

And as always with a new way of advertising, there’s a lot to learn. But fear not, because this is where we dive deep into the world of Dynamic Product Ads (DPAs) – the whys, whens and hows that might just change the way you advertise online.

What’s the ROAS on DPAs?

There’s no better place to start than discussing the effectiveness of a DPA campaign. And to be succinct: they’re very, very effective. In fact, we’ve seen ROAS (Return on Ad Spend) of up to 50x, with an average of 12x - because people are directed towards the product page and their intent to buy is already far higher than the casual browser. And with the typical Facebook user spending an average of 50 minutes a day on the platform, there’s no better place to engage with them.

Do I need a very active Facebook presence?

Not at all! There are a lot of different target audiences you can use for DPA. If you do have a lot of fans for your brand’s page, they’ll make a great target, because they’re likely to be highly engaged. However, it’s also possible to target people based on things they’re interested in, age and location, to name just a few.

How do I set up a campaign?

If you’re already using Facebook ads, you’ve got everything you need. As long as you have all the regular Facebook ad assets - a Facebook business page, business manager and ad account – you’re ready to create a DPA campaign. Install standard pixel events, and you’ll get better analytics and more effective re-targeting campaigns.

What should I upload from my catalogue?

In order to recommend the most relevant products to your customers, you should upload everything from your catalogue. This means you can serve personalized recommendations to each person that visits your site, no matter what they looked at. Which leads us to…

What are personalized recommendations?

This is an ad that is served based on two things – the shopper’s browsing history, and automated recommendations.

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This is a smart way of reminding shoppers of something they were interested in, and also showing them that you have a range of alternatives, if that item wasn’t quite right for them.

What else can I try?

Abandoned carts are a pretty universal problem in eCommerce, and DPAs can help here too. When a shopper intends to buy something and leaves your shop without it, reminding them with an abandoned cart ad can be just what they need to prompt that purchase. In fact, according to Nosto data, those that abandon a cart and are brought back to a store via a DPA are 14x more valuable than average shoppers.

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Another thing that has proven to be successful is the post-purchase ad. Optimizing for a customer’s lifetime value means you can make the most of their recent purchasing behavior, while you’re still fresh in their memory. According to our data, recommending products that accessorize or complement a recent purchase and retargeting them with a post-purchase ad can result in a 11x ROAS.

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At Nosto, our live product feed updates continuously to make sure your ads are delivered to the right person, at the right time. This is how we ensure people see both abandoned items and related products. At the same time, it allows us to upsell post-purchase.

How long should I target a customer?

This isn’t the kind of campaign that you want running indefinitely. After 30 days the effectiveness wanes, and your customer is likely to have seen your ad enough. If they haven’t made the purchase there’s probably a reason, like purchasing it somewhere else, or just no longer wanting or needing it. And while we’d recommend 30 days as the maximum, but you may find that you want to stop the campaign earlier.

So there you have it – everything you ever wanted to know about Dynamic Product Advertising, together with some trial campaigns for you to begin with. To find out more, you can download our Ultimate Guide to Facebook Dynamic Product Ads.

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There’s always more to learn – find out what you can do once visitors have entered your store, to drive conversions and ultimately bring in more sales. We’re sharing everything in our co-hosted Shopware & Nosto webinar on June 29th at 2pm BST/ 3pm CET. Put it in your diary!

Register for free webinar