Facebook ad trends: Dynamically generated ads ‘perform better’ (infographic)

28/08/2013

A new study by Kenshoo Social has revealed that the most successful ads on Facebook Exchange (FBX) tend to be those that are dynamically generated based on the products or pages that online shoppers have previously viewed outside of Facebook.

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FBX is a system for targeting ads to Facebook users based on their off-Facebook browsing history, so advertisers working through the FBX real-time-bidding (RTB) system can display relevant, timely ads to users of the social network. FBX gives advertisers a way of re-marketing to Facebook users who have already demonstrated intent by visiting their websites and product pages.

Ads on FBX can be constructed with static images and copy or created dynamically using product feeds. Implementing dynamic, feed-based creative enables marketers to customise their messages based on the specific products that the consumer researched, thereby making a more highly targeted and relevant ad.

Kenshoo Social’s FBX research found that dynamically generated FBX ads which are customised according to Facebook users’ previous browsing history have Click Through Rates (CTRs) which are 1.9 X higher than static uncustomised ads.

Dynamically generated ads also have Conversion Rates (CVRs) which are 2.0 X higher and a Cost Per Click (CPC) which is 16 percent lower. Overall the Return on Investment (ROI) of dynamically generated ads versus static ads is 1.8X higher ($8.10 versus $4.50).

Kenshoo Social analysed a sample of FBX campaigns over the first half of 2013, including billions of impressions, clicks and conversions. The sample focused on major retailers actively running SEM, Facebook Marketplace and FBX campaigns. Retailers within the sample all used multi-touch attribution models that apportion revenue and conversion value to each touchpoint in the customer journey rather than simply applying full credit to the ad or channel that generated the last click.

In order to truly maximise the results from FBX, advertisers need to be able to incorporate search engine data as well as website browsing data into their campaigns according to Todd Herrold, senior director of product marketing at Kenshoo Social:
“If you can target customised Facebook ads to people based on their search behaviour as well as what they've looked at on a website and their previous purchases, think how powerful your ads will be. Kenshoo Social is currently the only platform that can put all of this data together - and we can measure it all and provide attribution across all touchpoints. Kenshoo is the only company in the world that has a search bid management platform, Facebook Strategic Preferred Marketing Developer credentials, native FBX access, as well as integration with the Twitter Ads API.”

An infographic illustrating the results of Kenshoo Social’s study of FBX advertising can be viewed at: http://kenshoosocial.com/education-resources/fbx-analysis/

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