HOW DYNAMIC PRODUCT ADS HAVE
TRANSFORMED RETARGETING ON FACEBOOK
RETAILERS ARE DRIVING MORE PURCHASES
AND HIGHER RETURN ON AD SPEND
When it comes to generating purchases and capturing more revenue from
remarketing on Facebook, Website Custom Audiences have been likened to
butter: they make everything better. However, marketing teams at today’s top
online retailers are more sophisticated and data-driven than ever, and they
demand new tools to take performance on Facebook to the next level.
With the ability to automatically deploy customizable, feed-driven ads,
Facebook’s Dynamic Product Ads have changed the game of retargeting.
Marketers managing and optimizing Dynamic Product Ad campaigns using
Nanigans software are achieving strong returns versus comparable retargeting
campaigns that solely leverage Website Custom Audiences.
WHAT ARE WEBSITE CUSTOM AUDIENCES?
Website Custom Audiences are one of Facebook’s most popular targeting tools.
They allow advertisers to automatically show relevant ads to people who have
previously visited their website.
While it’s possible to leverage Website Custom Audiences to retarget people
who viewed specific webpages or products, the setup involved with more
granular segmentation can make this strategy difficult to scale. Website Custom
Audiences aren’t hooked into the same real-time product feed information (e.g.
SKU, description, inventory status, and more) as Dynamic Product Ads.
Nanigans | Advertising Automation
1
How Dynamic Product Ads Have Transformed Retargeting on Facebook
WHAT ARE DYNAMIC PRODUCT ADS?
Dynamic Product Ads use the same targeting functionality as
Website Custom Audiences, but do so within a feed-driven
ad unit that automatically customizes itself for each individual
user. In this way, Dynamic Product Ads are a highly scalable
retargeting solution, enabling you to intelligently promote
the most relevant products from your entire catalog to
customers on any device.
This means that you can drive more purchases for your
online retail business by delivering ads targeted to users who
may have viewed, purchased, or added a product to their
shopping cart.
With Dynamic Product Ads automatically showing customized
promotions to individual shoppers—tapping into all the
available product data and the user’s previous on-site
desktop or mobile browsing activity—you increase the
likelihood of a purchase. It’s like a highly personalized
storefront on some of the most valuable digital real estate
available today.
WHICH RETARGETING SOLUTION IS BEST?
Every retailer has different advertising objectives, and there’s no one-size-fits-all retargeting solution on
Facebook. Both Website Custom Audiences and Dynamic Product Ads offer unique value and strategic benefits,
but there are some cases where one solution may generate higher returns than the other. Considering these
simple factors can help determine which tactic may be more effective.
DYNAMIC PRODUCT ADS
WEBSITE CUSTOM AUDIENCES
are ideal for when...
are ideal for when...
 You’re selling more than 10 products
 You’re selling fewer than 10 products
 Your inventory changes relatively
frequently
 You need to get campaigns up and
running immediately
 You already use Website Custom
Audiences to create audiences based
on on-site actions, like add-to cart or
product view
 Your ad copy and creative requires
frequent refreshing
Nanigans | Advertising Automation
2
How Dynamic Product Ads Have Transformed Retargeting on Facebook
DRIVING MORE PURCHASES FROM DYNAMIC PRODUCT ADS
Website Custom Audiences have been, and continue to be, a tremendous tool to help advertisers
effectively target customers who are more likely to complete specific actions like booking a flight
or downloading a new mobile app. However, recent Nanigans data demonstrates that among the
largest, most savvy retail advertisers, Dynamic Product Ads are quickly becoming a go-to strategy for
retargeting at scale.
When looking at combined ad spend using Website Custom Audiences and Dynamic Product Ads,
the shift is clear, with advertisers augmenting their more traditional Website Custom Audience
campaigns with additional spend for Dynamic Product Ads.
Ad spend mix, Dynamic Product Ads vs. Website Custom Audiences
Advertisers are increasingly supplementing Facebook ad spend using Website Custom
Audiences with new Dynamic Product Ad campaigns.
After 7 Days
Catalog
Retailer
After 60 Days
After 7 Days
Footwear
Retailer
Flash Sale
Apparel
Retailer
42%
71%
1%
After 60 Days
After 7 Days
After 60 Days
+69%
58%
29%
+3,300%
99%
34%
4%
66%
91%
Dynamic Product Ads
Nanigans | Advertising Automation
increase in Dynamic
Product Ad spend share
+125%
96%
9%
increase in Dynamic
Product Ad spend share
increase in Dynamic
Product Ad spend share
Website Custom Audiences
3
How Dynamic Product Ads Have Transformed Retargeting on Facebook
These significant changes in retargeting ad spend are easily justified by the corresponding share of
purchases. For each retailer in this study, Dynamic Product Ads are driving an increasing percentage
of total purchases.
Purchase share mix, Dynamic Product Ads vs. Website Custom Audiences
Facebook Dynamic Product Ads are driving an increased share of purchases compared to campaigns
leveraging only Website Custom Audiences for retargeting.
After 7 Days
Catalog
Retailer
39%
After 60 Days
69%
After 7 Days
Footwear
Retailer
Flash Sale
Apparel
Retailer
After 60 Days
After 7 Days
After 60 Days
+77%
61%
31%
increase in Dynamic Product
Ad purchase share
100%
26%
18%
28%
Dynamic Product Ads
74%
82%
72%
+56%
increase in Dynamic Product
Ad purchase share
Website Custom Audiences
Beyond the ability to intelligently retarget prospective customers, a key value of
of Dynamic Product Ads is their ability to sync with your product feed in real-time,
optimizing relevance and increasing the likelihood of driving a purchase.
For example, the Flash Sale Apparel Retailer targeted women ages 25-35 using Dynamic
Product Ads promoting items these individuals had viewed online, but didn’t add to their
shopping cart. Also included in their targeting specifications were shoppers who added
items to their cart, but didn’t follow through with the checkout process.
As a fast fashion site with rapidly changing deals, the retailer saw immediate benefits
from the automated synchronization of Dynamic Product Ads with their live product
catalog. This real-time relevance ensured that potential customers would only see ads
featuring products with available inventory at that time. With a short sales window and a
history of high conversion rates, the retailer substantially reduced its risk of wasting ad
spend by directing clicks to sold-out products.
Nanigans | Advertising Automation
4
How Dynamic Product Ads Have Transformed Retargeting on Facebook
The real-time nature of Dynamic Product Ads streamlines the
purchase decision-making process for customers, and the ad
creation process for online retailers promoting an array of products.
These benefits have led to promising downstream metrics for
advertisers, compared to the same-advertiser spend using static ads
with Website Custom Audiences.
Down-stream performance, Dynamic Product Ads vs.
Website Custom Audiences
For many advertisers on Facebook, Dynamic Product Ad retargeting campaigns are delivering
stronger down-stream performance than those using only Website Custom Audiences.
Catalog
Retailer
Footwear
Retailer
Flash Sale
Apparel
Retailer
Website Custom
Audiences
Dynamic Product
Ads
Purchase Rate
2%
4%
Average Order Value
$109.83
$113.53
Return on Ad Spend
217%
225%
Website Custom
Audiences
Dynamic Product
Ads
Purchase Rate
4%
5%
Average Order Value
$140.94
$191.95
Return on Ad Spend
467%
625%
Website Custom
Audiences
Dynamic Product
Ads
Purchase Rate
1%
4%
Average Order Value
$35.77
$34.63
Return on Ad Spend
13%
290%
Nanigans | Advertising Automation
5
How Dynamic Product Ads Have Transformed Retargeting on Facebook
Dynamic Product Ads, unsurprisingly, tend to command higher
prices, with costs on a per-click basis trending higher across all the
advertisers in this study. However, for many advertisers the higher
returns they’re able to achieve using the ad unit for retargeting
clearly outweigh the increased costs, and make adopting Dynamic
Product Ads a key to overall strategy.
For data-driven retail advertisers return on investment is everything,
and Facebook’s Dynamic Product Ads deliver on this all-important
metric for multi-product online retailers—capturing more revenue
from retargeting ad spend. By intelligently promoting the most
relevant products from your entire product inventory to customers
on any device, Dynamic Product Ads can act as a smart, personalized
catalog for the digital age.
GET STARTED WITH DYNAMIC PRODUCT ADS
This guide has everything marketers need to know to get started
generating more revenue with Dynamic Product Ads. Download The
Essential Guide to Driving ROI with Facebook Dynamic Product
Ads for an overview of how they work and creative use cases to take
performance to the next level.
Download the Free Guide
Take control of your digital advertising with the software powering today’s
most successful in-house performance marketing teams.
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