Here Comes Facebook With its Dynamic Ad Products!
As if online shopping wasn’t already becoming targeted enough, Facebook has now rolled out its dynamic ads product to image-based social media site Instagram. It first launched dynamic ads in February 2015, which allowed brands to automate advertising by showing users advertisements based on products they had just viewed or added to their basket.
With around 60% of people saying they discover new products on Instagram, according to research, the network is trying to tap into the enormous potential for advertisers. Many brands are already using Instagram to promote products, but Facebook says tailoring advert creative and targeting for every product is ‘time consuming’. It used an example of Canadian jewellery brand “Jewlr”, who trailed the tech before it went live. According to Facebook, Jewlr targeted people in the US who had viewed their products online or had added something to their basket but not followed through with a purchase.
The company said it had seen “strong results” with the targeting and the return on advertising spend has almost tripled. Facebook’s also gunning for the travel industry with dynamic ads for travel. It’s predicted that 73% of people in the US will research a trip on their mobile before taking one. The product is currently only available for hotels right now but will be rolled out to more sectors of the travel industry after testing.
Dynamic adverts for travel mean travel advertisers can offer hotel options to people who have shown interest in taking a trip, either by browsing hotels or by searching for and booking a flight. For example, a travel business can connect with people who viewed a hotel on their website by showing them an advert featuring the hotel they viewed, along with similar hotels nearby. Facebook also rolled out advanced options for custom audiences from business’ websites, to help target business’ most valuable website visitors and segment their audience by the intensity of their interest to drive conversions.
The New York Times has been using this feature for the last year to drive subscriptions by creating audiences made up of people who are most likely to subscribe. The publication says it has reduced its cost per subscription from Facebook advertising by 25% and more than doubled the volume of subscription conversions. It’s clear Facebook’s latest tranche of product updates mean the social media giant is really sinking its teeth into the advertising landscape.
Indeed, Facebook said the changes reflect “our commitment to make Facebook, Instagram and the Audience Network the most effective platforms for driving sales on mobile”. Unsurprising, seeing as advertising makes up the bulk of Facebook’s revenues.