How to Use Facebook Dynamic Product Ads

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• Facebook Dynamic Product Ads are secret weapon for marketers, and many businesses fail to fully utilize them.
• They’re based on your product catalog, creating instant and effortless personalized experiences for each user.
• Our guide shows you how to quickly make these ads, plus we share the top tips to ensure they’re maximally effective.

Imagine a marketing secret weapon so powerful that it can turn mere interest into instant purchases, recapture old customers, and convince those with abandoned carts to finally follow through. That’s the true potential of Facebook Dynamic Product Ads (DPAs), now known as Advantage+ catalog ads. These ads use machine learning to match the right product with the right person whenever your ad might be shown.

Let’s explore how DPAs can bridge the gap between curiosity and conversion. As we unravel the steps you’ll take to create your first dynamic product ad, you’ll learn why these ads excel at retargeting and increasing sales. And even if you’re a seasoned marketer with DPAs firmly under your belt, you’ll still find our best practices and tips handy for maximizing your returns. 

Whether you’re an advertising novice or an experienced veteran, now is your chance to brush up on DPA basics and add some tricks up your sleeve!

Facebook Dynamic Product Ads, Step-by-Step

DPAs are based on product sets in your catalog. If you don’t already have a catalog, you’ll need to make one. Facebook provides a handy guide for creating a catalog in Commerce Manager. However, you’ll also need to have a Facebook Page for business and a Business Account in Business Manager before you can do that. Simply follow the steps on the linked help pages if you’re unsure how to proceed. 

After you’ve completed all the prerequisites, it’s time to start editing and refining your product catalog.

1. Perfect Your Product Catalog: Creating a catalog is simple, but ensuring it shows the best side of your offerings is a long-term journey. You’ll want to constantly update your catalog with the most attractive high-res images, compelling messaging, and enticing details. Because it serves as the foundation for your DPAs, you should apply the same best practices you would for any other Facebook ad.
2. Set Up Your Sales Integrations: Whether you’re running a Shop on Facebook or from your website, you’ll want to be sure all the backend components are connected properly. The Meta Pixel, which is a simple snippet of code, may be required if you’re sending users to your site or app. If your Facebook account and your website aren’t properly linked, your ads likely won’t display properly.
3. Pick a Product Set in Ads Manager: In Ads Manager, you’ll select a product set from your catalog. Product sets can be filtered by a wide range of categories, so think about which items in your lineup are best for your target audience. If you want to promote particular seasonal products or collections, you can use those. You can also build completely custom product sets—meaning whatever products you want users to see—by choosing “Manually select items” in Commerce Manager. 
4. Personalize Ads for Each User: You can dial in retargeting settings in the ad set level. Here, you’ll find an option to show the same products once again to users who previously viewed them but didn’t make a purchase. This also applies to users who added items to their cart but didn’t complete their purchase.
5. Create an Ad Campaign: Once you’re satisfied with which products will appear in this set, it’s time to turn them into an ad. You can click “Advertise set” at the top of the “Sets” tab to start creating an ad campaign. Alternatively, you can set up a new campaign from Ads Manager and select the “Sales” objective. Either way, you’ll include all the details of a typical ad, like A/B testing information and the campaign’s name. For your initial spending choice, turn on the “Advantage Campaign Budget.”
6. Choose Your Budget, Audience, and Placements: Just like a typical Facebook ad, you’ll be able to narrow down your target audience, choose where you’d like your ads to appear, and select more granular budgeting options. This provides you with another opportunity to use retargeting options, allowing your Advantage+ catalog ads to remind customers of the products they previously showed interest in. 
7. Finalize Your Ad Creative: In ad setup, you can also turn on “Dynamic Formats and Creative.” This allows Facebook’s machine learning algorithm to show each person the items they’re most likely to engage with. The Ad Creative section lets you select different cover media, primary text, headlines, and descriptions for different ad sets. Now you’re ready to publish your new ad!
   
   

Just like you would with any Facebook ad campaign, closely monitor performance and spending to ensure you’re getting the best bang for your buck. If your Advantage+ catalog ad isn’t delivering results, consider trying different product sets, images, and messaging. But remember, calculating the amount you “should” be spending on Facebook ads isn’t an exact science—which is why we’ve created a helpful guide to teach you some of the tricks.

Best Practices for Effective Dynamic Product Ads

If you want to get the most out of your Advantage+ catalog ads, you’ll need to pay careful attention to ad performance and your ROAS. The success of Dynamic Product Ads depends on many factors, but there are some key differences between this format and standard Facebook ads. Below, we’ll list some of the main elements that you should consider when tweaking your ads for maximum effectiveness:

• Understand the Power of Engaging Creative: Solid creative can increase ROAS by drawing customers in with your bold style and eye-catching visuals. Your messaging can play a major part in how users perceive your brand, so think carefully about who you’re talking to and why they should care about your products. Even though creatives are slightly different in Dynamic Product Ads, there are still many variables to adjust and refine—so try not to get complacent once the catalog is connected.
• Audience Segmentation and Hypertargeting: Segment your audience when you create product sets—not just in the ad options. Differentiate between users who abandoned their carts and those who merely browsed. Tailor every element of your DPAs, including messaging and product sets, to address their unique objections and perspectives.
• Optimize Your Creatives & Understand Placement: It goes without saying, but always aim for mobile optimization first. Some reports state that nearly 60% of all online traffic is via mobile devices, and it’s unlikely that number will decrease. Similarly, be certain that your ads will display beautifully within your chosen placements, whether that’s the News Feed or the Right Column. Stretched, illegible, or unprofessional-looking ads will get the wrong kind of attention.
• Leverage A/B Testing: A somewhat underutilized feature of Advantage+ catalog ads is A/B testing—but just like standard ads, you can run variations in parallel to get better performance data. Use this tool to your advantage, gaining quicker insights into which ads are working (and which ones aren’t). Eliminate underperforming ads and make your campaign cost-effective sooner.
• Keep Your Product Catalog Up to Date: If you’re not performing regular maintenance on your product catalog, it’s time to make it a priority. Because your DPAs draw directly from your catalog, it’s vital to ensure everything it displays reflects your current inventory, prices, and features. There’s nothing more frustrating than nearly making a sale, only to have a customer exit because the product they clicked on is currently out of stock.
• Prioritize High-Performing Products: You probably have a flagship product or set that sells better than the rest of your inventory. Give these items the spotlight and feature bestsellers with high CTRs (click-through rates) to capitalize on their historical appeal. DPAs can help these top sellers perform at their very best.

Take Your Dynamic Product Ads to the Next Level

Mastering the nuances of Dynamic Product Ads can be a long-term investment. Why try to tackle them all on your own? When you partner with the Facebook and Instagram advertising experts at Social Ktchn, you’ll have a team ensuring every ad, click, and conversion propels your brand toward cost-effectiveness and a better bottom line.

Connect with Social Ktchn to learn how we can help you get so much more from Meta’s advertising platforms. Let’s craft your next Advantage+ catalog ad together and maximize your returns!