Dynamic Facebook Ads, Retailers’ Newest Friend

by Bill McCarthy on 12-09-16

In case you haven’t heard, Facebook recently launched dynamic ads for retail — a digital advertising platform that aims to drive physical store sales. By utilizing Facebook’s abundance of information about its users, these new Facebook ads pair a nearby store location with a picture of a product that is relevant to each Facebook user. Facebook’s choice to create these ads signals a shift in the role that digital advertising may come to play in retail because these dynamic ads encourage online shoppers to ditch their computers and visit brick-and-mortar stores.

Here’s how they work: while logged in to Facebook, someone who may have recently been browsing boots online might see Facebook ads with pictures of boots from a local retailer. The dynamic advertisement would display the distance to the nearest store location where the boots are available, subtly indicating how easy it would be to buy the product in store.

Ideally, both the shopper and the retailer benefit from dynamic ads: the shopper learns where to find a product, while the retailer connects directly to an interested customer. With dynamic ads, the digital channel flows seamlessly into the physical channel, creating a cohesive omnichannel shopping experience.

Integrating digital and physical shopping channels is a new move for Facebook. Last year, the company launched dynamic product ads, which merely redirect customers to a product’s website, thereby restricting the user to a single digital platform. The original product ads also lack the customizability of the newer ads, as they simply show products that the retailer chooses to display, unspecific to each Facebook user.

While dynamic ads for retail can reach any Facebook user, members of Generation Z are likely to be the most receptive, not only because Facebook is the most widely used app of their generation but because they appreciate immediacy. In fact, 6-20 year olds have a reported attention span of merely 8 seconds, so it’s not too far-fetched to assume that a glance at Facebook ads could spur a purchase.

Some popular Gen-Z brands, like Abercrombie & Fitch, have already started targeting the younger demographic by leveraging dynamic ads for retail. Well-known brands with wider target demographics have also found success from Facebook’s newest advertising opportunity: Macy’s, Pottery Barn, and Target, to name a few. If you’re interested in learning more more about dynamic ads for retail to your marketing strategy, check out this article Facebook Business.

Read more posts by Bill McCarthy

Bill McCarthy is the General Manager of the Americas, in which he oversees regional efforts pertaining to the Traffic Insights business unit.