Dynamic Product Ads on Facebook

A COMPLETE GUIDE

© Adphorus 2015
Content

Introduction 1

Benefits 2

How Dynamic Products Ads Work 4

Retargeting with Dynamic Product Ads 8

Best Practices 9

Bonus Feature
How to Scale Your DPA Spending 13

Case Study (Restorando) 14

Introduction
In February 2015, Facebook announced Dynamic Product Ads
(DPA), an ad format that enables advertisers to create dynamic ads
from their product catalog. It is an ad format that allows product
retargeting on a cross-device level, which means you can reach
people on desktop, mobile and tablet.

DPA is a solution to help you promote your entire product catalog

on Facebook and works best for e-commerce and retailers with
high web traffic and a large inventory that are looking to engage
their shoppers and drive conversions online.

We’ve been using this product with our advertisers over the
past months and we have indeed seen an up to 3 times
increase in conversion rate and up to a 65% decrease in Cost
per Conversion.

CPC Conversion Rate

65% decreased x3

Adphorus | Facebook Marketing Partner 1

Benefits
Cross-Device Targeting

Advertisers can reach users with single or multi-product ad units

across all devices regardless of their original touchpoint, which was
not possible with Facebook Exchange (FBX). For example, if a user
browses a product on their tablet device, they will be targeted with
the ad promoting the same product across their phone, website and
tablet alike.

Save time with a scalable and always-on ad format

Dynamic Product Ads is a scalable always-on retargeting solution

that saves lots of time by promoting all your products. DPA allows
advertisers to use one ad template for all products and create
thousands of ads automatically with unique creatives without having
to configure each individual ad. Facebook automatically pulls
relevant product ID, name, description, landing page URL, image
URL and stock status from product catalog feed to fill out the
content for that ad.

Adphorus | Facebook Marketing Partner 2

Max. ROI with Product-Based Retargeting

Dynamic Product Ads take retargeting to the next

level by including exactly those products or
services that people viewed on website within the
ads themselves. Since for Dynamic Product Ads
you take additional steps, for example adding a
custom event to your WCA pixel and creating a
feed, it can deliver customized, and thus, better-
performing ads.

Up-Selling and Cross-Selling Between Categories

With the introduction of up-sell and cross-sell, advertisers will

have the chance to increase lifetime value of their customers and
increase their average order value.

When a user purchases an item from one product set, advertisers can
cross-sell items from another category. For example, as an e-
commerce company, you can choose to suggest luxury handbags to
people who have recently purchased luxury shoes.

Up-sell is used to encourage a customer to move from considering

one item within a product category to another that would have
higher profitability (higher margin, higher price point, higher
conversion rate, etc). For example, if a customer viewed a shoe that
has a poor conversion rate, as the e-commerce advertiser, you could
instead show another shoe that has a higher profit and more likely to
lead to a conversion. 


Adphorus | Facebook Marketing Partner 3

How Dynamic Product Ads Work

Dynamic Product Ads simplify the advertising process with modified

Website Custom Audience Pixel. With this dynamic WCA pixel,
Facebook is able to report when specific products from your
catalog are viewed, added to cart or purchased.

This is how it works:

• The user visits your website, views products, adds them to their
shopping cart and purchases them.

• Each of these events is sent back to Facebook using events with

WCAs (Website Custom Audiences).

• Using different scenarios, users get re-targeted on Facebook and

on external networks.

Adphorus | Facebook Marketing Partner 4

 Product Feed Integration

Dynamic Product Ads allow advertisers to create link or multi product

ads that are targeted based on a set of products. Product Feeds are
dynamic uploads of your products and contain product items such as
stock keeping units. You can also have a single Product Feed to
represent all of the items in your catalog.

Adphorus | Facebook Marketing Partner 5

Difference between DPA & FBX

Dynamic Products Ads (DPA) and Facebook Exchange (FBX) both

provide a method to dynamically retarget on Facebook. However,
DPA offers the following improvements over FBX:

• DPA can be served both on desktop and mobile app. FBX ads only
run on desktop computers

• DPA enables advertisers to feature five products within a single ad.

FBX ads are limited to single product ads.

• DPA has more retargeting features, such as cross-device retargeting

and deep linking into apps.

Adphorus DPA Features

Features Adphorus Facebook Facebook

DPA DPA FBX

DPA Up-sell, Cross-sell

Dynamic Carousel Ads

DPA for Mobile Apps

Cross Device Retargeting

Mobile Retargeting

Dynamic Image Templates

DPA Prospecting

Adphorus | Facebook Marketing Partner 6

How to Create Website Custom Audiences on Adphorus

You can create your Website Custom Audiences on Audiences

section in the Assets tab.

1. Type the name for your audience, then choose a dynamic rule to
make a Website Custom Audience.

2. Select the domain and choose the Facebook ad account you will
use for the
Custom audience.Pixel
Audience

3. Click on create and your remarketing pixel will be ready.

Once you’ve got your remarketing pixel placed in the right place
on your website, which is at the end of <body> tag, Facebook
will start to track people you specify who visit your website. Note
that you need to specify which Website Custom Audience you
want to use for your campaign in targeting section.

Adphorus | Facebook Marketing Partner 7

Ad Templates

You can set up ad templates to create dynamic product ads and

choose to show a single product or multiple products at once using
the carousel ad format. Ad templates allow you to pull data, such as
product names, prices and pictures, dynamically to create dynamic
product ads.

Retargeting with Dynamic Product Ads

In Adphorus, you have unlimited options to create

custom remarketing scenarios using your own custom event
appropriate to your business model.

For example, you can create an audience

from users who:

• Changed the search criteria

• Ranked search results based on specific

information
(such as price, date etc)

• Picked the colour of the product

as they indicate further indication of purchase intent.

Adphorus | Facebook Marketing Partner 8

Best Practices

Target visitors showing purchase intent 

Audience segmentation allows you to tailor your ads to users in

different stages of the sales funnel. Coupled with Dynamic Product
Ads, it enables you to serve the right products to the right people
based on a user’s level of interest.

Using the events on your custom audience pixel, you can create the
following audience types on Adphorus:

1. Viewed but not purchased

2. Added to cart, but not purchased
3. Viewed or added to cart, but not
purchased
4. Custom remarketing scenarios

“Viewed but not purchased”

includes website visitors who
visited a product page but haven’t purchased the product yet.
Further down the sales funnel, “Added to cart, but not purchased”
narrows down the audience only to those who added a product to the
shopping cart but did not complete the purchase.

Adphorus | Facebook Marketing Partner 9

Users who added to cart but did not buy indicate the strongest intent
to purchase. Because these users are so far along the conversion
funnel, they are the perfect candidates for remarketing campaigns.
You can also specify the timeframe for the retargeting scenario. For
example, if your e-commerce site is getting a high amount of traffic,
decreasing the timeframe can increase your conversion rate, as the
ads will be shown to people who added the product to cart but did
not purchase in that period of time.

You can also create remarketing scenarios using your own custom
event appropriate to your business model. For example, you can
create an audience from users who changed the search criteria,
ranked based on specific information (such as price, date etc), or
picked the colour of the product, as they indicate further indication of
purchase intent.

Target customers based on LTV

If you run your campaigns with Adphorus, you can choose to segment
your audiences based on their LTVs and choose to give higher bids
for those with a history of spending more money. You can do this by
choosing custom targeting on your product audience and target users
with an LTV of more than $1000, or with an average basket size of
$100.

This will allow you to show your ad to a

more qualified audience and as these users
are more valuable to you, you can bid
higher to win more auctions. You can
expand the segmentation based on your
business and your KPIs.

Adphorus | Facebook Marketing Partner 10

Be careful with overlapping audiences

When you are running two ads at the same time targeting the same
audience group, you have to be careful about overlapping audiences.

In such a case, your ads are competing against each other, resulting in
a decrease in overall campaign performance. The best way to avoid
this is to exclude audiences of one campaign from that of the others.
Another way would be not running all the campaigns at the same time.

Target your mobile users

If you have a mobile app, you should make

sure to retarget users browsing your products
inside your app. Adding mobile app events to
your app allows you to use Dynamic Products
Ads for your mobile audience. This will help
you to advertise to users who browsed a
product on their mobile and target them on
desktop, and vice versa.

Adphorus | Facebook Marketing Partner 11

Use Multi-Product Ads

You can create multi-product ads showing up to 5 products in one post

based on users’ previous activity on the website. Showing more products
on an ad increases the chances of turning your potential customers into
actual shoppers. For example, you have a website selling 500 different
models of women’s shoes, and a visitor takes a closer look at ten particular
models on her mobile phone. With the help of dynamic retargeting she
will start to see those five last visited models as a multi-product ad on her
mobile and desktop news feed.

Split By Placement

If you split your targeting by placement (Mobile News Feed, Desktop

News Feed & Desktop Right Column) - which is simple with one-click
on Adphorus - you can get the most out of your DPA campaigns by
bidding differently for each placement.

Adphorus | Facebook Marketing Partner 12

BONUS FEATURE: HOW TO SCALE YOUR DPA SPENDING

• SET REASONABLE BID AND BUDGET:

Make sure you have a reasonable
budget and bid. If you bid too low, you $!
$! $!
will miss out on reaching all your $! $! $!
potential audiences. Similarly, if your $! $! $!
budget is too low, it will threaten
performance of your campaigns.

• INCREASE RETENTION TIME: Try to increase retention time to

increase your audience size as it includes people who visit product
pages for a particular timeframe. If this time window is too small,
your audiences might not be exposed to your ads. This is
especially important for websites that don’t get much traffic. Keep
in mind ads won’t deliver if the audience size is less than 20.

• CHECK YOUR PRODUCT CATALOG: Check that the product set id

belongs to the product catalog for which your Facebook pixel is
assigned to. Also make sure the product set has a good number
of products as a percentage of the total catalog. If there are 1000
items and only 10 in the set, that might affect delivery.

• MAKE SURE YOUR PIXELS ARE FIRING CORRECTLY: Check that

your pixel is correctly firing on View Content, Add to Cart and
Purchase event. When you compare website analytics and
Facebook results, discrepancies up to 20% are normal, however if
that gap widens, check that your pixels are installed correctly.

Adphorus | Facebook Marketing Partner 13

 How Restorando boosted its conversion rate by
integrating their internal recommendation engine with
Adphorus DPA Solutions

Restorando is the leading online reservation

platform for restaurants in Latin America with
presence in 18 cities and 8 countries.

Restorando managed to integrate their internal algorithm on DPA and

come up with an effective solution to increase their customer retention
rates.

With Adphorus DPA solution Restorando:

• Increased Conversion Rate (Check Out/Website Click) by x6

• Decreased Cost per Checkout by 49% compared to regular DPA
campaign of the same market
• Doubled its Click Through Rate

CPA Conversion Rate CTR

49% lower X6 X2

‘‘ ‘These campaigns allowed us to change the way we approach our

users on Facebook by giving them real recommendations in order
to help them discover new restaurants in their cities, which is finally

’’
our main goal.’

Lucas Ertola
Online Marketing Manager, Restorando

Adphorus | Facebook Marketing Partner 14

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‘’We chose to work with Adphorus as they were the first FMP to truly
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Global Performance Marketing, trivago

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Adphorus |Facebook Marketing Partner © Adphorus 2015