How Dynamic Product Ads are Changing Retail Marketing

Dynamic Ad on Phone

Brands have had to adjust to a new marketing environment with consumers unable to enter stores. It is difficult to shop for certain products online without getting the opportunity to test in person; such as shoes. In addition, the marketing tools that are accessible make product advertising difficult in a constantly-changing world. Finding an entirely digital relevant audience is a challenge that marketers have not faced yet. To meet these new demands, companies are integrating Dynamic Product Ads, or DPAs, into their marketing strategies.

What are Dynamic Product Ads? 

Dynamic Product Ads look similar to other ads on Social Media platforms. However, instead of making individual ads for each product, a template is used to take the images and details from the data feed and create specific advertisements. Dynamic ads allow businesses to upload their catalog to the platform. If the product’s price or availability changes, the ad will update in real-time to reflect this. As a result, there is less administrative work for advertisers to constantly edit. There is also less frustration for users to click-through to products that are a different price or no longer sold. 

How are Companies utilizing them?

Facebook and its associative platforms have already integrated DPAs into their advertising algorithms. The most recent Social Media giant to utilize this tool is Snap Inc. Snapchat has 229 million daily active users worldwide, most of which are in the Millennial and Generation Z demographic. The first companies to test the feature in the beta format are the British clothing company TopShop as well as Adidas. Since the start of the Coronavirus pandemic, retail brands have seen their sales plummet. They have been looking for a new way to integrate into new marketplaces and interact with potential customers. 

The first run of Dynamic Product Ads on Snapchat has looked to be a huge success. The Senior Director of media activation in Europe said in a statement “The launch of DPAs allows us a route to reach our target Gen Z and Millennial audiences with relevant product creative throughout the consumer journey.” This proves that Social Platforms have the unique ability to target and reach younger consumers in a user-friendly fashion. Social networks such as Facebook and Snapchat are built around being user-friendly, and now advertisements can as well. 

The Impact on the Marketing World 

As we look ahead to the post-pandemic future, tools such as Dynamic Product Ads will only become more valuable to brands. Marketers can use DPAs to enhance their advertisements and tailor them to a more specific audience. This functionality allows for more fluid messaging between brands and their consumers. In addition, marketers are less focused on constantly updating posted ads to keep up with their brand catalog. This will allow for more creativity and open new doors for marketing budgets. It will be interesting to see which platforms transition to Dynamic Product Ads, as the tool moves from the Social Platform realm to the entire online shopping community. 


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