By Alan Coleman on 9 Aug 2018
Wolfgang Bites: Watch "Wolfgang Bites: Steal Your Competitors' Customers With Facebook. Sneaky!"
Wolfgang Bites: Read "Wolfgang Bites: Steal Your Competitors' Customers With Facebook. Sneaky!"
Alan: Today, we're going to talk to you about how you can steal customers right out from under the nose of your competitors using Facebook. The innovation we're going to talk to you is built on top of Dynamic Product Ads. Let me tell you what they are. Here in Wolfgang, we call Dynamic Product Ads, Facebook Shopping and they're very much the Facebook equivalent of Google's shopping product.
What it looks like to a user is they're in their Facebook newsfeed and they're going to see an image of a product with some information, such as a price, and they can click through and go straight to your website and buy. Now, the genius of Facebook, the way they've infused intent into this ad format, is they only show the products to people who have been on your website and actually already looked at those specific products. Oftentimes, is it fair to say this is probably your best converting social media marketing?
Roisin: Yeah, definitely. Yeah.
Alan: From an e-commerce perspective, if direct response is your goal, this is the best you will get. However, the limitation is because you're only advertising to people who have only been on your website, there isn't a huge volume until Facebook unleashed a new version of this advertising which allows you to steal sales right from under the nose of your competitors. Roisin, would you like to tell us how it happens?
Roisin: Yes, yeah. Just as Alan said, DPAs are great but you're kind of limited to just remarking to your current customers or potential customers, people who have been to your website. What about prospecting? What about getting new people in? People are buying products from your competitors instead of you. Facebook released the Broad Targeting option through DPAs.
This was amazing. Basically, what this is, using the Facebook Pixel, Facebook will allow you to target people who are buying products, similar to yours, but on your competitors' websites.
Let's say you sell Adidas Runners. You can, through the Broad Targeting DPAs, you can actually target people who are looking at Adidas Runners on all your competitors' websites. You can show them the Adidas Runners that you're selling in their Facebook newsfeed.
Alan: This is a cold audience. Probably these are people who haven't been to your website yet, but you know that they're interested in your products. Are they going to convert well if these are people who don't know who you are?
Roisin: These are literally people who have never been to your website before. They're a cold audience, as you said. When we first tried it out, we thought, these aren't going to convert. They convert amazingly well.
Roisin: Yeah. The conversion rates for some of our client, let's say, for just regular remarketing ads, like maybe two to 3% or three or 4%. The conversion rate of the Broad Targeting DPAs, we've seen a size 2.5% which is huge because these are people who have never been on your website before.
You haven't had to put much work in to warm this cold audience up. I think one of the reasons is because they're so relevant. If you're looking at that product on another site and then you see that product on your newsfeed, I think a lot of people might not even register it's a different website sometimes. It leads them to click and convert, so we're delighted with this new format. It's brilliant.
Alan: Wow. The interesting thing here is, Roisin, it's a little bit sneaky setting up Facebook Dynamic Product Ads is a little bit more complicated than just setting up a normal Facebook Ad. Can you tell us a little bit about the extra work that goes in?
Roisin: Yeah. Obviously, to do this, you need to have a Facebook Pixel. You need to have Facebook Pixel on your website for all Facebook Ads really. What you also need is a product feed and you need to put your product feed into Facebook. It's slightly more, I guess, slightly more complicated, but it's almost like that Facebook is rewarding you for doing the DPAs with this amazing option to target competitors.
Alan: Yeah, absolutely. That's the bit for me that is very interesting. It's a little bit sneaky because essentially what Facebook are doing, and this is our Wolfgang Bite, is Facebook are allowing you to buy data from your competitors. The only reason Facebook knows what people are looking at on your competitors' websites is your competitors have Facebook cookies on the websites. Facebook, as Roisin said, is rewarding people who are probably more advanced advertisers.
If you've gone through the steps of setting up Dynamic Product Ads, Facebook knows, okay, they're pretty far down the process. Let's reward them. They can only get to their own website traffic at the moment. Let's open up their competitors' data. You're essentially buying your competitors' data and remarketing this way. Definitely a boat you want to be on.
Roisin: Yeah, get on that boat!
Alan: Okay. If you have any questions, we'd love to hear your thoughts on Dynamic Product Ads and Broad Targeting Dynamic Product Ads. Get on the Twitter conversation using #WolfgangBites.