There is a HUGE Facebook dynamic ads update on the way. Dynamic ads have been making ecommerce remarketing campaigns much more efficient - now they're coming to prospecting.
Episode Transcript — Major Facebook Dynamic Ads Update
00:02 Stewart Anderson: Welcome back to the spend 10K a Day Podcast. I'm Stewart Anderson, with me as always my friend Steve Weiss. Today we're talking about a new update to Facebook's dynamic ads. It's audiences for prospecting. A rather, rather important update, something that marketers have been looking forward to for awhile. Steve, tell me a little bit about how this is gonna work.
00:25 Steve Weiss: This kind of levels the playing field with in regards to the little guy versus the big guy. Let me talk to you a little more about this before I get into the weeds on how this update to dynamic the product ads work. When Facebook released the dynamic product ads, it was mainly a tool or a technology within Facebook that allowed companies who already had existing website traffic efficiently and effectively re-market to people who've already been on their website with a product feed. So Facebook would have access to all the products on your website and would have the freedom to market specific products to specific people based on their prior engagement habits on your website. AKA if I went on sears.com and I looked at a lawnmower, Facebook would see that then they'd market similar products, similar lawnmowers to me when I logged into Facebook the next session.
01:19 SW: Well, Facebook kind of turned the whole model of re-marketing only with dynamic product ads on its head with this new update. They said that now even the mom and pop market or e-commerce site who only has 100 users a day coming to their website, now they still have the same ability to leverage dynamic product ads as, say, a sears.com who has hundreds of thousands of people browsing their website. Pretty much how dynamic product ads works, this update, it pretty much says that you can market dynamic product ads to what we call broad audiences, or AKA people who've never visited your website before.
01:56 SA: Yeah, this is a big update 'cause before dynamic product ads, all the re-marketing stuff that you can do with it, super-powerful. We were seeing tremendous results with our especially large catalog e-commerce companies. We were driving down CPA, increasing volume significantly. It was getting great results, but to really make best use of them you had to have a lot of traffic, or you had to have at least a little bit of traffic going to your product pages. Now you can prospect, it really opens the door for any business.
02:22 SW: Yeah, and I guess a lot of people always ask me, "Steve, how does dynamic product ads work? What is a dynamic product ad? Why is it being shown to these sets of people?" And I'm just gonna explain how Facebook looks at dynamic product ads now. Now Facebook has all this data on people. They know the sites that you go to from a Facebook ad, they know the stores you browse, the music you listen to, the places you travel to. And now Facebook is saying that they're gonna take your product catalog and they're gonna serve you ads from a product catalog based upon your prior engagement habits overall instead of your prior engagements habits on a specific website. Facebook knows exactly what you're gonna be doing, so now you could leverage their dynamic product ads. Facebook's gonna cherry-pick products from your product catalog and show them to people within an audience that they think are most likely to do the action that you wanna do. Whether it's conversions or clicks, they're gonna take products from your catalog and do that in a more automated process.
03:25 SA: Yeah, and so I think as the feature gets more and more fleshed out over time we'll learn more and more about how Facebook is really calibrating everything here. But what do you think is... It sounds like this is something where... Versus the re-marketing side of things that's been around for awhile, I think marketers are still gonna have to do a little bit more configuration when it comes to testing this out and optimizing it.
03:48 SW: Well, you always have to optimize your product catalog. It's not... Making dynamic product ads work, it's a whole other conversation. But you really have to make sure that the image that Facebook is pulling and the text that it's pulling is actually conducive to the product that they're marketing. That's a whole other topic in itself, and we're probably gonna go over on another podcast, but for those that are already doing a form of dynamic product ads already, this is just ground-breaking. And as we all know that when Facebook launches a new feature, you wanna jump on it immediately. Because if Facebook's collecting data on this and they're serving these ads to the highest amount of ad impressions possible to collect data to figure out what works best inside the marketplace. I would highly suggest that after you listen to this podcast that you go into your power editor, your ads manager, and start setting up these DPA ads for prospecting. I wanna call them DPA ads for prospecting because it's very simple. DPA ads is mainly known for re-marketing. We call this new feature DPA ads for prospecting.
04:56 SA: Yeah, absolutely. What do you think... We've talked a little bit about how this is gonna work. Where do you think... What types of businesses if you're just delving into e-commerce, where do you think this is gonna be most effective? What types of products do you think can really make best use of this? Obviously, there's a lot of audience data out there. I think clothing is the one that really strikes me a lot.
05:20 SW: Clothing, fashion accessories, any e-commerce site that has a multitude of SKUs and a large, diverse amount of product selections I think this is amazing for. I don't think this is a big update for singular product e-commerce sites or regeneration or mobile app companies. I think it's mainly gonna be used for companies that have a multitude of SKUs that really wanna get a wide variety of eyeballs on their products, that literally wanna generate conversions and really wanna intelligently leverage dynamic ads to generate conversions.
05:57 SA: Yeah. No, I completely agree. If we're just thinking through here, obviously now this adds a whole other element to the equation for prospecting. Before you had a lot of things that you're testing, different audiences, things like that. How would you adjust your normal strategy when you're launching prospecting campaigns for a brand? How would you kind of incorporate this into what you're testing? Are you taking a little bit of the market share from another one of your typical audiences you're using? Is there a certain type of audience that you think you might pull out a little bit and replace with this? Where do think this fits in alongside all these other...
06:32 SW: This is just another tool in the toolbox.
06:34 SA: Yeah.
06:34 SW: Stu, this is my opinion another tool in the toolbox for prospecting campaigns. I think that we always talk about leveraging video for prospecting, leveraging quizzes, leveraging a unique value prop of your brand; something unique and eye-catching to bring people in who've never been brought in before. And I think leveraging DPA for prospecting is just another unique way Facebook is cherry picking out your best products and serving them to the people most relevant to take action.
07:06 SA: Yeah.
07:06 SW: I think this is just another tool in the toolbox, something you should test out immediately and I'm excited to start opening this up on some of our internal campaigns.
07:15 SA: Yeah, absolutely. I think this is... This is something that I know our campaign managers and our clients whenever they look at the DPA results for the re-marketing, they're just like, "When can we get something like this for prospect? When's this gonna come out?"
07:26 SW: Yeah.
07:26 SA: And now it's finally here. And I think I'm excited just for the first iteration. But just looking at how Facebook has quickly iterated on a lot of features recently. Yeah, as they make this thing better and better I think this is just... It's amazing how good Facebook is getting as a platform for e-commerce businesses.
07:43 SW: They're listening to a lot of the pain points of their customers. I think they're doing a really good job of researching and analyzing and coming up with ad tech features that are continuously ahead of the times. They're not perfect. There's obviously a lot of stuff that frustrates us about the platform. But at the same time, you can tell that they're actively trying to bring new features that allow us marketers to be more successful at spending our money.
08:09 SA: Yeah, absolutely. Couldn't agree more.
08:12 SW: So cool, this is a great new feature. If anyone has questions about it, feel free to email me directly: Steve@mutesix.com. Glad to answer any questions you have about how to leverage this into your campaigns. That's pretty much what we have for today. I just really wanted to communicate this new ad feature. We're gonna be coming tomorrow with another incredible episode. And you'll find out. Stayed tuned. And I think it's a beautiful day, Stu. Until the next one.
08:38 SA: Yeah, I will catch everybody later on the next podcast. Thanks for joining us.