Multi-advertiser ads, also known as dynamic product ads, are a type of Facebook ad that allow advertisers to promote multiple products in a single ad. With multi-advertiser ads, advertisers upload their product catalogs to Facebook and Facebook automatically generates relevant ads based on the products in the catalog.
How do multi-advertiser ads work?
Multi-advertiser ads work by using Facebook’s machine learning algorithms to analyze the advertiser’s product catalog and target relevant products to users based on their interests, demographics, and behavior on Facebook. When a user sees a multi-advertiser ad in their feed, Facebook will dynamically select a product to show them from the advertiser’s catalog.
For example, an online clothing retailer could upload their entire product catalog to Facebook. When a 25-year old female user who has previously browsed dresses on the retailer’s website sees the multi-advertiser ad, Facebook may select a dress in her size and style to feature in the ad.
Benefits of multi-advertiser ads
There are several key benefits to using multi-advertiser ads on Facebook:
- Showcase multiple products in one ad – With multi-advertiser ads, advertisers can promote their entire catalog without having to create separate ads for each product.
- Improved relevancy – Facebook’s algorithm will select products that are more likely to be of interest to each user, improving engagement.
- Time and money saving – Creating separate ads for hundreds or thousands of products would be extremely time consuming. Multi-advertiser ads automate the process.
- Flexible campaign management – Advertisers can blacklist certain products from being shown in the ads or set bid adjustments for certain products.
- Built-in reporting – Facebook provides aggregated reporting on multi-advertiser ad performance across all products.
How to create multi-advertiser ads
Follow these steps to set up multi-advertiser ads on Facebook:
- Upload product catalog – Upload a product catalog to your Facebook Business Manager account in a supported format such as CSV. The catalog must contain product IDs, product names, image URLs, etc.
- Create a product set – Within the Facebook ads manager, create a product set and add the products from your catalog that you want to advertise.
- Design ad creative – Design a simple ad creative that doesn’t feature any specific products. You can include your brand name and general messaging.
- Set up campaign – Create a campaign within Facebook Ads Manager. Under placements, select “Automatic” to enable dynamic ads.
- Launch campaign – Set a budget and launch the campaign. Facebook will automatically generate product ads tailored to each user.
- Monitor performance – Use Facebook’s reporting to see aggregated performance data across all products in your multi-advertiser ad campaign.
Best practices for multi-advertiser ads
Here are some top tips for success with multi-advertiser Facebook ad campaigns:
- Curate your product set – Don’t just upload your entire catalog. Carefully choose the products that make sense for dynamic ads.
- Have a clean, organized feed – Ensure your product catalog follows Facebook’s specifications and has consistent, structured data.
- Use high quality images – Dynamic ads rely heavily on imagery, so use high resolution, professional photos.
- Target broadly – Let Facebook’s algorithm find your ideal audience. Broad targeting works best.
- Test different bids – Try higher bids for your best-selling or high-margin products.
- Review reporting frequently – Check the reporting to see which products are performing best.
- Optimize based on results – Remove underperforming products from your ads and promote the top performers.
Pros and cons of multi-advertiser ads
Here is a overview of the key advantages and disadvantages of using multi-advertiser ads:
Pros
- Requires less time and resources than standard ads
- Automatically tailors ads to each user for better relevance
- Provides aggregated reporting across all products
- Allows you to promote a large catalog at scale
- Gives flexibility to optimize for the best-performing products
Cons
- Can be difficult to target narrow or specific audiences
- Harder to build an emotional connection through the ad creative
- Requires giving control to Facebook’s AI – less human input
- Need large product catalog for best results
- Reporting is aggregated, not individual creative-level
Types of multi-advertiser ads
There are a few varieties of multi-advertiser ads available on Facebook:
Dynamic product ads
The most common type – promotes products from an online retail catalog. The ad content automatically reflects the product being advertised.
Dynamic travel ads
Highlights travel offers like flights and hotel rooms. The ads showcase relevant listings from a travel company’s inventory.
Real estate dynamic ads
Promotes real estate listings from a property catalog. Listings can be dynamically tailored to each user based on location, price range, etc.
Dynamic job ads
Advertises open job listings that match users’ skills, experience and location. Listings change automatically based on available roles.
Difference between carousel ads and multi-advertiser ads
Carousel ads and multi-advertiser ads can appear similar at first glance, but they work differently:
- Carousel ads feature multiple products in a single ad unit that users can swipe through.
- Multi-advertiser ads dynamically select one product to show each user individually.
- Carousel ads require creating imagery and copy for every product upfront.
- Multi-advertiser ads generate ads on the fly from the product catalog.
- Carousel ads give the advertiser more creative control.
- Multi-advertiser ads rely on Facebook’s algorithmic personalization.
In summary, carousel ads allow showcasing various products in one ad while multi-advertiser ads display one personalized product recommendation per ad.
Are multi-advertiser ads effective?
Multi-advertiser ads can be highly effective when implemented correctly. In fact, Facebook reports that multi-advertiser ads have 1.5x higher click-through rates and 2.5x higher conversion rates compared to standard static product ads.
Reasons dynamic product ads are effective include:
- More relevant – Products are tailored to each user for higher interest.
- Fresh content – The product shown changes, keeping the ad engaging.
- Automated optimization – Facebook AI optimizes for relevance over time.
- Catalog-level scale – All products get a chance at being shown.
The key is having a robust product catalog, dialing in your targeting, monitoring performance, and letting Facebook’s algorithm optimize the rest. Used strategically, multi-advertiser ads can be a powerful driver of sales.
Examples of effective multi-advertiser ad campaigns
Many top brands have leveraged multi-advertiser ads successfully. Here are a few real-world examples:
ASOS
- UK-based online fashion retailer
- Used dynamic product ads across Facebook, Instagram and Messenger
- Saw 2x higher CTR and 76% lower CPA than standard product ads
- Achieved an 8.9x ROAS from their multi-advertiser ads
Daniel Wellington
- Swedish watch company
- Leveraged dynamic catalogs in 20 markets worldwide
- Improved results in every market – 2x higher CTR on average
- Reduced cost per link click by 44% globally
Otta
- Online furniture retailer from Canada
- Used detailed customer segmentation within dynamic ads
- Achieved 2x higher CTR and 50% lower CPA vs. their standard ads
- Saw a $32.28 average order value from multi-advertiser ad clicks
The success of multi-advertiser ads depends on the individual execution, but these examples demonstrate the potential for improved performance.
Setting up multi-advertiser campaigns via Facebook Business Manager
Here is an overview of how to set up a multi-advertiser ad campaign using Facebook Business Manager:
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Upload product catalog – Go to Business Manager > Catalog Manager > Create Catalog. Add your products via CSV file.
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Create ad account – Ensure you have a Facebook ad account connected to your Business Manager.
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Select business objective – such as Conversions for ecommerce. This opens multi-advertiser ad options.
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Pick catalog – Select the catalog you want to use for the campaign.
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Set placements – Check off Instagram, Facebook, Messenger, etc. Select “Automatic” for dynamic ads.
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Customize targeting – Refine your audience targeting based on demographics, interests, behaviors, etc.
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Design ad creative – Create a simple ad template without any specific products.
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Launch campaign – Pick campaign duration, budget, and launch.
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Monitor performance – Check campaign reporting to see product-level and aggregated metrics.
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Optimize campaign – Adjust targeting, bids, creative, excluded products, etc. based on results.
Following these steps will help you set up, launch, and optimize a successful multi-advertiser ad campaign on Facebook.
Conclusion
Multi-advertiser ads represent an innovative, automated approach to advertising on Facebook. By uploading their product catalogs, advertisers can let Facebook’s algorithms dynamically promote relevant products to each user.
Benefits of multi-advertiser ads include improved ad relevancy, greater scale, and time and money savings compared to traditional product ads. However, they also require advertisers to give up some control and rely on Facebook’s AI.
When implemented strategically with best practices in mind, multi-advertiser ads can drive stronger campaign performance and ROI. With users responding positively to personalized, relevant ads, dynamic product ads are likely to make up an increasing portion of Facebook advertising budgets in the years to come.