What are Facebook Dynamic Product Ads (DPA)?

Dynamic Product Ads make it easy for merchants to get ads for relevant products in front of interested customers on Facebook. They let you scale the delivery of relevant ads to Facebook users by combining a product feed with an ad template that needs to be created just once.  Facebook automatically draws data from your product feed and populates the template with relevant products.  The choice of products that the viewer sees is based on the Facebook user’s past behavior on your website or app.  You are also able to reach new potential customers through the creation of lookalike audiences.

What do DPA’s look like?

DPA’s are versatile and you can configure your ads to contain anywhere from 1 to 5 products.  Have a look at the examples below.

Single product ad: image_url=”1768″

Multi-product ad: image_url=”1770″

Where do they appear?

The ads can appear within the news feed as well as in the column on the right of the news feed.  When you set up the advertisement in Power Editor, you get to choose where your ad is shown.  You can even choose whether you want your ads to appear on mobile or desktop or both.

You can choose exactly where your ads can appear.

How do DPA’s work?

DPA’s work essentially using three elements:

  • a product catalog updated constantly by means of a product data feed,
  • a tracking pixel which tracks the behavior of target customers
  • and a dynamic ad template.

The pixel tracks the behavior of customers such as product viewed, product added to cart or product purchased.  Based on that behavior, Facebook selects product data from your catalog and populates the ad template before delivering the ad to the customer.  In this way, you can automatically show a product to someone that has viewed it on your website or added it to their basket but did not purchase.

Alternatively, if someone has made a purchase on your website, you can show that person a set of products that are complementary to the product they bought. As well as displaying ads to people that have already interacted with you on your website you can also use Facebook’s similar audience function to target advertisements to new customers that have similar interests to your existing customers.

Do they work?

Early indications show that dynamic product ads work well. Digital marketing agency Point It found that DPA campaigns outperformed traditional Facebook campaigns a few months after their implementation.

Separately, a pilot program implemented by Criteo found that sales attributed to DPA’s contributed to 6.5% of total sales.

Apparel retailer St. Frock also saw some great results, increasing their return on ad spend (ROAS) by 480% and reducing cost per acquisition (CPA) by 70% through the use of Facebook DPA’s.

How do you set up DPA’s?
  1. Setup Facebook Business Manager if you haven’t already done so.
  2. Create a product catalog in Business Manager by following these instructions.
  3. Set up a product feed to continually update your product catalog with fresh product data.  If you are a Highstreet.io client, this part couldn’t be easier.  Just tell us you want to start using DPA’s and we’ll set up the feed for you.
  4. Set up a Facebook Pixel to track events on your website.  Facebook has recently simplified things for advertisers with the introduction of the Facebook Pixel. This pixel combines the functions of their Custom Audience Pixel with those of their Conversion Tracking Pixel so advertisers need only to install a single pixel (more information on this can be found here).
  5. Create your dynamic product template (for instructions click here).

Facebook Dynamic Product Ads are proving to be an effective tool for merchants to target interested customers with relevant ads.  Make sure you check them out because if you are not using them to drive customers to your e-commerce website, there is a good chance your competitors are.