If you’re not using DPA ads, are you having at least tested it, you absolutely should.
Sadly most people view it is only a retargeting effort, or maybe for DABA.
But it’s so much more powerful than that
Audience Requirements
DPA ads are great, but it’s often really difficult to understand where to start when it comes to what audiences to target with them. So let’s break down the algebra of audience identification, so that we can understand the best possible start when launching dynamic product ads.
The first thing that we need to understand is that our audience needs to be large enough to be profitable, and hopefully also scalable. So we have to know how do we even get the audience size to begin with?
The best way to identify your audience size is to go to your events manager. You will see certain pixel events occurring a number of times over a time period. For instance, you might see 5000 page views occurred in the last 28 days. This does not mean 5000 people clicked on pages though. It means that 5000 page-view events fired. If the average person used 2 to 3 pages on your site per visit, that means you’re page view audience over the last 28 days is probably between 2000 & 3000 people.
We also need to understand that DPA as retargeting will require a daily frequency likely above 2x to see consistent results that are profitable within our audience. We also know that not everybody in our audience will get reached every day, we might only reach 50 to 65%.
This means that we take our daily budget and divide it by our CPMs, we should have an impression count that is at least 50% more than the potential size of our audience.
DPA as Market Research
Probably my favorite use case for DPA ads has very little to do with making direct money from them, and far more to do with using it as a market research tool to understand the behavior of folks who viewed product pages and abandoned cart.
Did you know that you could break down the ad spend of your DPA by product ID in your catalog?
If we spend a few dollars a day against folks who abandoned cart in the last week, we’re gonna know what product they are most interested in. Now most likely we’re going to see the highest spend on the product that we’re spending the most amount of ad dollars to promote, but what’s the second, third or fourth most popular product? When folks have abandoned cart, and we show them our entire catalog, what has Facebook determined they’re actually most interested in looking at and engaging with?
This is a tremendously helpful process to understand upsells and bundles and email flows. We can understand user navigation within our site far beyond the primary product that we are promoting. We can also use this to understand the variant IDs that get the most attention.
Understanding what variant ID gets the most spend on retargeting mid and low-funnel customers, is a tremendously powerful insight toward creative direction for our ads. What is the color, or the shape, what is the flavor, that our customers are most interested in actually engaging with even before they make their purchase?
Why it helps our 1 Campaign
Running DPA alongside the 1 campaign strategy, allows us to leverage cash flow and market research to improve the efficacy of our advertising across all channels.
For more expensive items, Facebook may function primarily as a brand awareness and lead gen effort to a CRM-based sales funnel. In this use case, DPA to sell ancillary products might be a tremendous way to gain market share and generate cash flow, to help handle the business operational needs on a day-to-day basis plus the marketing budget and acquire new customer journeys by selling something small, and then upselling to your high ticket items.
When our 1 campaign is focused on a lower ticket item, DPA ads can be a tremendous tool to help push more premium offers, like bundles and rebuttal upsell "Buy More Save More" positioned opportunities.
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