Earlier this week, Facebook announced they are launching new products ads which can be customized to create a better ad experience. Businesses will be able to upload their product catalogs, allowing the platform to generate ads for specific items and serve targeted users.
In their blog post, Facebook explained “Advertisers can curate ads as they see fit. For instance, they can highlight products that were viewed on their website/mobile app or showcase best-selling products. Or they can create a multi-product ad that highlights the different benefits of a single product.”
The customization harnesses the data giant’s access to information on personal interest and geographic location of its users. This advantage looks like big moola for the number one social network.
Google has already been doing something similar since 2013 with its Shopping Ads that appear on top of search results with images and pricing when you search for retail keywords. Both Facebook and Google’s version of this retail ad format will recognize when products are no longer available and cease advertising them.
Facebook is positioning itself to take a bite out of Google’s revenue with its new ad format and consumer data. The targeting capabilities will allow marketers to find their audience leveraging knowledge of music and clothing style interests, plus location.
The dynamic visuals of this ad format makes them more effective than the usual PPC text ad, which Google talks about in endless case studies. Merchants have been spending more on these ads showing they prefer to invest visual marketing formats.
Facebook has been encouraging more photos and video posting ad findings show advertisers are on board with a visual web-based shopping experience for consumers.
Last quarter, despite posting 64% more frequently, brands reached 32% fewer Facebook users with unpaid posts. However, their engagement went up 14% – partly due to more visual posts which garner more likes, comments and shares.
With retailers flocking to Facebook, CEO Mark Zuckerberg expects to see an increase in ad spend, similar to Google’s, which was up 47 percent in 2014. Adobe predicts that shopping ads will make up 30 percent of all search advertising in the second half of 2015.
Yahoo and Bing have their own versions of the ad format, restricted to a small market share for now. Marketers are seeing they need to invest in multiple channels and look beyond Google.
As of now, Target and Shutterfly are testing Facebook’s new products ads.