Early in January, Facebook updated their Dynamic Ads and will now allow advertisers to target potential customers based on their interests and shopping intent rather than just one specific product they have been browsing.
The reason for the change is to drive more sales. Dynamic Ads will now use an algorithm that includes browsing history, Facebook behavior, and demographics. From there Facebook can find more users who have shown a similar interest in a product.
Dynamic Ads were initially launched in 2015. They let you dynamically promote your products (via remarketing) in the News Feed of people who have recently visited your website.
Moving forward the new dynamic recipe will identify people who have an intent to purchase a certain product.
Facebook Dynamic Ads can now find users who have shown a similar interest in a product and deliver ads for your product, even if they have never been to your site.
Let’s say someone is trying to book a fly fishing trip to Belize. Facebook knows this because this person has visited a variety of websites that offer trips to Belize and also liked a bunch of photos of Permit caught in Belize from on of your local competitors. Dynamic Ads will now have the ability to serve that person an ad about your trip to Belize even if they have never been to your site. As you can imagine this could be a very powerful tool.
Facebook is testing interest-based targeting for Dynamic Ads with a small number ecommerce and retailer advertisers in North America first. According to Facebook, the online furniture retailer Wayfair was able to beat its customer acquisition targets by 20% using the expanded Dynamic Ads product.
Setting up Dynamic Ads
Getting started with Dynamic Ads is pretty straight forward. You need to:
- Upload your product catalog
- Set up your Facebook Pixel
- Create a Dynamic Template for the Ad
- Run the dynamic Ads
If you need help check out these resources: