A Guide to Facebook Dynamic Ads: How to Target Broad Audiences
In 2015, Facebook released Dynamic Ads to enable brands to advertise products or catalog sets to people across Facebook, Instagram, and the Audience Network. Through Dynamic Ads, brands were introduced to a completely new way of reaching customers.
Advertisers across all verticals started implementing Dynamic Ads into their campaigns and were seeing great performance – low costs-per-click and higher clickthrough rates. The original rollout of Dynamic Ads, however, limited advertisers to only retargeting and serving ads to previous website visitors and app users. To help advertisers expand their reach, Facebook released Dynamic Ads for Broad Audiences.
Advertisers can now upload entire product catalogs to dynamically serve ads to users based on their interests, behaviors, and demographics, in addition to retargeting users who have viewed, added to cart, or purchased specific items.
Dynamic Ads for Broad Audiences
Dynamic Ads for Broad Audiences – also known as Dynamic Ads for Prospecting – is an extension of Facebook’s Dynamic Ads format that allows advertisers to reach people who have expressed interest in their products (or products similar to theirs), even if those people haven’t visited the brand’s website or app yet. This feature allows advertisers to serve Dynamic Ads for acquisition, in addition to the previous Dynamic Ads retargeting.
Dynamic Ads campaigns have driven great efficiency for many advertisers, and the Broad Audiences feature allows them to extend the reach of those highly efficient campaigns.
Why It’s Important
Dynamic Ads for Broad Audiences provides relevancy at scale, presents an acquisition strategy that is supported by user behavior, and generates results that are measurable down to the product level. When Dynamic Ad campaigns are in place, it’s easy to test the ability to capture an audience based on real-world signals.
How It Works
- Facebook pixel: You’ll need a Facebook pixel implemented on your website to get started with Dynamic Ads. Use standard events to report which product IDs from your catalog are being viewed, added to cart, and/or purchased. You may need to work with a web developer to set up your Facebook pixel and standard events, however if you use regular Dynamic Ads this should already be set up.
- Product catalog: You’ll need a product catalog to use Dynamic Ads. If you don’t have one yet, learn how to create a product catalog here. In many cases, you can use an existing feed from other online shopping portals with one of Facebook’s third party integrations.
- Targeting: Facebook will create your audience based on the products in your catalog and any additional targeting options you choose to overlay, such as the location, age, or gender. You can also choose to exclude users based on certain behaviors (recent purchasers, etc.)
- Reporting: If you use internal and/or third-party analytics platforms to measure your Dynamic Ads, you may want to add your URL parameters directly to Facebook to accurately track and attribute any traffic or conversions.
- Dynamic Ads for Broad Audiences will introduce your brand to users who may be shopping for your products on competing websites. Facebook uses behavioral cues to recognize in-market consumers who may not have considered your brand, then serves an ad with the optimal product. This is great for acquisition campaigns.
- Targeting broad audiences extends the reach of Dynamic Ads, since audiences are not limited to people who have been to your website.
- Ads are dynamically generated from the product feed, leading to minimal creative requirements and making it easy to test the performance of different post text.
Increase Returns with Dynamic Ads for Broad Audiences
In the third quarter of 2017, Adaptly launched Dynamic Ads for Broad Audiences for a major retailer and experienced a clickthrough rate nearly 10% higher for Broad Audiences compared to regular Dynamic Ads. The campaign showed strong return on ad spend (ROAS) for both 1-day and 7-day conversion windows – 20% higher ROAS for same-day purchases and 15% higher ROAS for purchases made within the week.
Being able to target Facebook users who are interested in certain products and serve them with actual merchandise helps advertisers get their products in front of people with real purchase intent.
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