Overnight Facebook announced a new ad format for retailers. Called “product ads” these will give advertisers the opportunity to upload their product feed and create campaigns targeting target specific products to a specific audience, or let Facebook automatically deliver the most relevant products to people.
Advertisers can automatically reach people who visited their website/app, reach people based on specific interests, locations, etc. They can also schedule day and time periods when they want their ads to run.
When using a product feed, Facebook can automatically stop showing ads for products when they are out of stock.
“Facebook has the best targeting capabilities, so it can take some of the limelight from shopping ads on Google,” said Tamara Gaffney, principal analyst for Adobe Digital Index (ADI). Google’s “Shopping Ads” which account for around 20% of clicks on Google search links for retailers. Adobe has predicted that shopping ads will account for 30 percent of all search dollars by late 2015.
Target in the USA is one of the few brands to currently have access to dynamic product ads, and are already reporting success with the new format.
Kristi Argyilan, Senior Vice President, Target, said “With dynamic product ads, Target has been able to more easily engage consumers with highly relevant creative. The early results have exceeded expectations, with a 20% increase in conversion compared to other Facebook ads. Performance has also been especially strong with people shopping on mobile devices — an important and fast-growing area for Target — where we’re seeing two times the conversion rate.”
Dynamic product ads are set to roll out on the coming weeks.