5 Reasons Facebook Dynamic Ads Will Oust Third-Party Retargeting

Reading Time: 2 Minutes

When it comes to marketing, relevancy is the name of the game. Delivering the right message, to the right audience, at the right time pays off.

With Facebook dynamic ads, businesses can automatically promote single- or multi-product ads spanning awareness to conversion. Instead of configuring hundreds – possibly thousands – of individual ads, advertisers can upload their entire product catalog and reach users based on their interests, location, etc. or retarget people if they have viewed, added to cart, or purchased specific items. These relevant, cross-device ads drive solid results: one Adaptly retail client drove purchases valued at more than $1 million and a nearly 10x return on ad spend (ROAS).

Facebook first rolled out dynamic ads in 2015. As the platform continues to invest in making the product more sophisticated and efficient, new releases, enhanced features, and beta opportunities will be released natively first, then to Ads API partners like Adaptly, with third-party retargeting companies receiving limited access last. While third-party retargeting companies still have access to Facebook at the moment, they will likely be forced out of the mix since their products won’t be able to achieve parity on the platform. Read on for more key reasons Facebook dynamic ads will come out on top.

  1. Transparency: If businesses run dynamic ads through a Facebook Marketing Partner (FMP), the agreed upon fees are fixed and transparent. Given that the products are unique to the Facebook platform, there is no vested interest in distributing marketing budget to high-margin placements like there would be for a third-party retargeting company. As a result, dynamic ads typically see increased efficiencies and clients know exactly where their dollars are going. On the other hand, exact margins via third-party retargeting companies are often undisclosed and heavily inflated, with the markup a result of having to gather ad inventory from various sources and exchanges.
  2. Targeting flexibility: With dynamic ads, advertisers are able to build various audiences of people on Facebook based on their platform activity or category interests and target them as they move along the consumer purchase funnel. You can even layer more granular first-party data on dynamic ads to reach niche audiences as needed. In addition, with Facebook’s recent updates, users can be retargeted based on their purchase intent not only directly from an advertiser’s site, but also from expressing interest on other sites or within Facebook as well. With this model, retargeting follows demand for a product versus strictly advertiser site activity, which increases both campaign scale and relevance.
  3. Seamless campaign data: Keeping campaign activity within the Facebook walled garden allows advertisers to benefit from cross-sharing information between their standard paid social and retargeting campaigns to drive stronger, more qualified website traffic.
  4. Cross-sell/up-sell opportunities: Dynamic ads provide more flexibility to cross-sell and upsell different categories based on the product sets and algorithm rules available on Facebook. For example, an advertiser could create a product set for watches and a product set for handbags, and either upsell to promote more expensive items in those categories or essentially create a “rule” that if a watch is purchased, then that user should be cross-retargeted with a handbag. In doing so, there are more ways to increase basket value and customer lifetime value.
  5. Full-funnel activity and attribution: Using a single platform (Facebook) from upper-funnel prospecting to lower-funnel retargeting creates a more consistent conversation with consumers and ultimately, a clearer picture for attribution and ROAS when evaluating overarching campaign or business success.