You're using Facebook DPA Ads COMPLETELY WRONG!

Summary

This video script reveals a strategic approach to using Dynamic Product Ads (DPA) for more than just reducing Cost Per Acquisition (CPA). It delves into leveraging DPA for market research, identifying customer interests beyond purchases, and optimizing ad spend for better returns. The speaker shares personal insights from multiple ad accounts, emphasizing the importance of understanding consumer behavior to improve sales and customer engagement.

Takeaways

• 🚀 Dynamic Product Ads (DPA) are a powerful tool for retargeting customers and can significantly lower Cost Per Acquisition (CPA).
• 🔍 DPA ads were introduced by Facebook in 2016 and have evolved to include broader audience targeting and product catalog-based prospecting.
• 📈 To effectively use DPA ads, it's crucial to analyze event data and scale your ads based on the number of events, aiming for around 10,000 events or 3,000-8,000 people.
• 🛒 DPA ads are traditionally used for retargeting customers who have added items to their cart or viewed product pages, but they can also be used for broader marketing strategies.
• 📊 The script emphasizes the importance of analyzing DPA ad performance by product ID to understand customer interest and optimize ad spend.
• 📝 DPA ads can serve as a valuable market research tool, providing insights into customer preferences that post-transaction surveys might miss.
• 🛍️ By understanding which products attract attention but don't convert, businesses can adjust their marketing strategies to better match customer desires.
• 🔄 The script suggests using DPA insights to create product bundles and improve the unit economics of ads, potentially increasing Average Order Value (AOV) and customer satisfaction.
• 📉 The video discusses the potential downside of focusing too much on 'hero products' and the benefits of diversifying ad content based on customer interest data from DPA ads.
• 🔑 DPA ads can reveal what repeat customers are interested in, which may differ from their initial purchases, offering a key to increasing customer retention and LTV (Lifetime Value).
• 💡 The script encourages businesses to use DPA data to inform broader marketing strategies, including email flows and upselling tactics, to better serve customer needs.

Q & A

What is the primary purpose of Dynamic Product Ads (DPA ads) according to the script?

The primary purpose of DPA ads is to show people who have visited a store all of the things they might be interested in, especially useful for retargeting customers who have added items to their cart or viewed product pages.

When were Dynamic Product Ads first introduced by Facebook?

Dynamic Product Ads were first introduced by Facebook in 2016.

What was the initial challenge with DPA ads in terms of consumer behavior?

The initial challenge was that carousel ads, like DPA ads, did not exist before, so Facebook had to invest in changing consumer behavior to get people used to engaging with this new type of ad format.

Why is having a good economy of scale important for running DPA ads effectively?

Having a good economy of scale is important because it allows for a larger pool of potential customers, which can lead to more sales and help bring down the overall Blended CPA (Cost Per Acquisition).

What is the recommended minimum number of events to start running DPA ads effectively?

The recommended minimum number of events is around 10,000, which generally equals about 3 to 8,000 people.

How can DPA ads be used for broad audiences?

DPA ads can be used for broad audiences by showing people your product catalog based on other people's product catalogs that they've engaged with, which can help in prospecting.

What is the significance of analyzing the performance of individual products within a DPA ad?

Analyzing individual product performance within a DPA ad provides insights into which products are capturing attention and creating intent, which can be invaluable for optimizing ad spend and improving customer engagement.

How can DPA ads serve as a market research tool?

DPA ads can serve as a market research tool by revealing which products customers are interested in but not purchasing, providing insights that post-transaction surveys cannot offer.

What is the potential benefit of targeting repeat customers with products they show interest in but did not initially buy?

Targeting repeat customers with products they show interest in can increase the likelihood of repeat purchases and improve the customer's overall experience with the brand.

How can insights from DPA ads be used to improve email flows and one-click upsells?

Insights from DPA ads can be used to tailor email flows and one-click upsells to offer products that customers have shown interest in, potentially increasing conversion rates and average order value.

What is the potential downside of relying solely on post-transaction surveys for understanding customer preferences?

Relying solely on post-transaction surveys can lead to a biased data set, as these surveys only capture feedback from a small percentage of customers who made a purchase, missing out on the preferences of the majority who did not buy.

Outlines

00:00

📈 Optimizing DPA Ads for Lower CPA

The script starts with a lively introduction to the topic of Dynamic Product Ads (DPA ads), emphasizing their underutilized potential for scaling efficiency and reducing Cost Per Acquisition (CPA). It takes a trip down memory lane to 2016, highlighting the introduction of DPA ads by Facebook and the initial challenges faced, such as the need for extensive product feeds. The speaker shares personal experience with Macy's, detailing the process and costs involved in setting up DPA ads. The video promises a deep dive into optimizing DPA ads, including live demonstrations and strategies for retargeting and broad audience targeting, which can lead to increased sales and a lower blended CPA.

05:01

🔍 Fine-Tuning DPA Ad Campaigns for Scale and Efficiency

This paragraph delves into the specifics of setting up DPA ad campaigns for optimal performance. It discusses the importance of targeting the right audience segments, such as those who have added items to their cart or viewed product pages, to capitalize on easy conversion opportunities. The speaker introduces the concept of using event data from Facebook's Event Manager to determine the right scale for ad campaigns, suggesting a focus on around 10,000 events or 3,000-8,000 people. The summary includes practical steps for narrowing down the event window to find a consistent data set that can lead to efficient ad scaling, without overspending the budget daily.

10:03

📊 Leveraging DPA Ads for Market Research and Intent Creation

The speaker uncovers a lesser-known use of DPA ads as a powerful tool for market research and intent creation. By analyzing the performance of individual products within DPA ads, businesses can gain insights into customer interests and preferences that traditional post-transaction surveys and Google Analytics might miss. The paragraph discusses how to use DPA ad data to identify which products attract attention but do not convert, and how to use this information to create more effective marketing strategies, such as personalized email campaigns and upselling opportunities. It also touches on the potential for creating product bundles that align with customer desires, rather than just promoting the brand's hero products.

15:05

🚀 Enhancing Customer Understanding and LTV with DPA Insights

In the final paragraph, the speaker emphasizes the value of using DPA ads to understand customer behavior and preferences, which can significantly impact customer lifetime value (LTV) and average order value (AOV). The focus is on targeting repeat customers with products that have previously earned their attention and creating intent for re-purchase. The speaker suggests that by analyzing DPA ad performance, businesses can identify the most effective products for customer engagement and tailor their offerings accordingly. The paragraph concludes with a call to action, encouraging viewers to explore the NBA program and other resources for further insights and support in leveraging DPA ads for business growth.

Keywords

💡DPA Ads

DPA Ads, or Dynamic Product Ads, are a type of Facebook advertising that automatically creates an ad from a product catalog. They are designed to retarget users who have shown interest in products from a store. In the video, the speaker discusses how DPA Ads are traditionally used to lower CPA (Cost Per Acquisition) but suggests that they are often used incorrectly and can be leveraged more effectively for deeper insights into customer behavior.

💡CPA

CPA stands for Cost Per Acquisition and is a metric used to measure the cost of acquiring a new customer. It is calculated by dividing the total cost of advertising by the number of new customers acquired. The video emphasizes the common goal of reducing CPA through the use of DPA Ads, but also points out that there are more advanced strategies that can be employed for better results.

💡Retargeting

Retargeting is a marketing strategy where ads are shown to users who have previously interacted with a company's website or online content. In the context of the video, retargeting is used to remind users of products they have viewed or added to their carts, with the aim of encouraging them to complete a purchase.

💡Product Feed

A product feed is a data file containing information about products, such as name, price, image, and description. It is used in digital marketing to create dynamic ads like DPA Ads. The script mentions that in the past, creating a product feed was a complex and costly process, requiring manual spreadsheets for each product variant.

💡Carousel

In the context of DPA Ads, a carousel refers to a format that allows advertisers to showcase multiple products in a single ad. The video script describes how this feature was initially confusing to users, as it was a new way of presenting products in ads.

💡Event Manager

The Event Manager in Facebook Ads is a tool that allows advertisers to view and manage the events that their ads are tracking, such as add to cart or view content actions. The video script uses the Event Manager to identify the number of events, which helps in determining the scale and targeting of DPA Ads campaigns.

💡Blended CPA

Blended CPA refers to the overall cost per acquisition across all advertising efforts, taking into account different campaigns and their individual CPAs. The speaker in the video discusses strategies to reduce the Blended CPA by optimizing DPA Ads and considering the broader impact on customer lifetime value (LTV).

💡Market Research

Market research is the process of gathering, analyzing, and interpreting information about a market, including customers' needs and preferences. The video script suggests using DPA Ads as a form of market research to understand which products customers are interested in, beyond just those who make purchases.

💡Intent Creation

Intent creation in marketing refers to the process of stimulating a desire or intention to purchase a product or service. The video discusses how DPA Ads can be used not only for retargeting but also for creating intent by showing products that capture customers' attention.

💡LTV

LTV stands for Lifetime Value and is the amount of revenue a company can expect to generate from a single customer over their lifetime. The video script mentions that by better understanding customer preferences through DPA Ads, advertisers can increase LTV by providing more relevant offers and products.

💡AOV

AOV, or Average Order Value, is the average amount spent by customers per transaction. The video suggests that by using insights from DPA Ads, businesses can improve AOV by offering product bundles or combinations that customers are more likely to be interested in.

Highlights

DPA ads are a powerful tool for scaling efficiency and reducing CPA, but many are using them incorrectly.

Introduced in 2016, DPA ads showcase a carousel of products from a store's site to retarget potential customers.

Historically, DPA ads were used for retargeting customers who abandoned carts or viewed product pages.

The speaker shares personal experience with Macy's, highlighting the evolution of DPA ads and the early challenges.

DPA ads can be used for broad audiences and prospecting based on engagement with similar product catalogs.

The importance of scaling DPA ads with a good economy of scale, ideally starting with around 10,000 events.

Using the event manager to find the optimal number of events for effective DPA ad scaling.

Different strategies for different businesses based on their volume of add to cart events.

The potential of using view content events for businesses with lower volumes of add to cart events.

The concept of not spending the full budget daily and achieving a high volume of transactions to reduce CPA.

The idea of using DPA ads for market research to understand customer interest beyond post-transaction surveys.

DPA ads as a tool to identify products that attract attention but don't convert into sales.

The value of DPA ads in understanding customer intent and preferences for products not initially purchased.

Using DPA insights to improve email flows, one-click upsells, and overall unit economics.

Targeting repeat customers with DPA ads to discover what products interest them for future purchases.

The potential of creating bundles and offers based on DPA ad insights to increase customer satisfaction and sales.

The importance of not relying solely on post-transaction surveys for understanding customer preferences.

The benefits of letting customers guide the product and offer selection process through DPA ad insights.

Transcripts

[Music]

scale your

efficiency everyone loves to get a lower

CPA and DPA ads are one of the tried and

true and tested ways of getting that

done and if that's all you're using them

for I'm here to tell you something very

simple you're using DPA ads completely

wrong this video is going to be a lot of

fun and we're going to dive deep and

dirty and I'm actually going to share my

screen into multiple ad accounts to get

deep into everything we're going to talk

about today but before we do that

because I'm gonna get distracted take a

moment hit the like button I think it's

right around there and don't forget to

subscribe and ring the bell so you don't

miss any other future videos and that

being said let's get into it cuz this

one this could change your future so

let's rewind the clock all the way back

to

2016 Pokemon go was all the rage and

Hodor broke our hearts something called

hles Swift was big news and Facebook

released this brand new ad product

called DPA ads for the first time ever

would show somebody this thing called a

carousel of all of the products that a

store featured on their site where you

could show somebody literally everything

in your store's product catalyst law I

was running ads for Macy's and we had to

pay this Australian agency over

$50,000 to build an Excel spreadsheet of

literally every single product and

variant size and color for everything

that Macy's North America sold on their

website and before you say damn Daniel

and we had to do this because a product

feed wasn't something that existed yet

Dynamic product ads are great for

showing people that have been to your

store all of the things they might be

interested in and that is an exceptional

use case also for what it's worth you

can use Dabba Dynamic ads for broad

audiences which I think came on the

market like 2 years later and you can

use that information to actually go

prospecting by showing people your

product catalog based on other people's

product catalog that they've engaged

with but that's a whole other thing

let's get deeper into retargeting ads

right quick now best practice for years

basically from the GetGo was to Target

people that had abandoned cart or view

product pages what we call view content

and this has been pretty easy money for

almost every D Toc business almost right

from the beginning although it did take

about 3 to 6 months for people to start

engaging with DPA ads because what the

hell is this Carousel is what basically

everybody ever said it didn't exist

before that Facebook had to invest in

changing consumer Behavior something

that we're seeing them do right now by

the way with Facebook shop so what we

want to do is initially get into the

event manager now inside of event

manager you're going to see this lovely

graph now I've got a graph here where

also going to go through a couple other

examples what we're looking for is a

good economy of scale to start running

our ads to generally speaking I like to

focus around 10,000 events which

basically equals about 3 to 8,000 people

which means that if one in 100 of those

people buy we can make a couple dozen

sales a day and that's a great use case

and an easy way to generate a lot more

revenue and bring down your overall

Blended CPA so let me show you how to

figure this all out so when you go to

the events manager it's going to default

to showing you all of the actions that

took place in the last 28 days when we

look at the last 28 days inside of this

ad account it's 75,000 out ofarts that's

a lot more than 10,000 so let's start to

pull back on the number of days the

easiest thing we can do here is go last

s days now that's showing us

16,000 so let's constrain it just a

little bit more let's go 4 days and hey

look at that 9.6 th000 add to cards

that's pretty good and we look at the

graph obviously it's all over the place

but this is a pretty solid data set for

us to begin with let's go to another ad

account and try the same exercise so

this is a completely different business

much higher volume and when we look at

the added cards over the last 28 days

it's

49,000 that's a lot more than 10 so

maybe when we go to one week yeah that's

uh

73,000 events still way too many in fact

it's about 7 times too many

so what if we just did

yesterday oh

91,000 that's pretty close let's do that

now let's go for one more for all of you

that aren't getting hundreds of

thousands of add to card you like yeah

Charlie of course that works for them

what about me uh let me show you one

other business here now go last 28 days

here to the add to card event that's

20,000 so let's cut that in half when we

do that what do we see we see 7.6 th000

now that's not a lot and knowing that

that's probably going to be maybe even

less than 2,000 people and knowing that

that's a pretty long window maybe the

place to start here isn't an ad to card

at all what if we went up to view

content now view content over the last

four days is 335,000 so let's maybe cut

this by a third last 5 days and oh look

at that

10,000 which tells us because we were

able to project that number it's also

really consistent and we can also see

that on the graph like it's not spiking

like this stuff makes sense okay let's

start there what this means is on the

first example we're going to launch with

an add to card to last 4 days the second

example we're going to do an add to card

of the last 24 hours and on this third

example we're not going to do an adic

cart we're going to go view content last

5 days now this is only starting place

but this is where I start for every ad

account the point here is if this works

maybe you can scale it up if this

doesn't do well maybe you can scale it

down maybe instead of lowering the

budget you can reduce the time the idea

here is can I get a consistent result

where basically I'm not spending my

budget in full every single day and I'm

getting a very high volume of

transactions so basically I can

assuredly reduce my Blended CPA and

probably increase my second purchase

rate because I'm not excluding buyers

from this I'm letting people come in and

buy again and yeah if they were going to

buy anyway oh well if I can get an extra

five or 10 sales and maybe 20 of them

are duplicitous I'm still making more

money and because the CPA is much lower

than my average my Blended still looks

good am I willing to pay a slightly

higher Blended CPA to massively improve

my LTV yeah because you know what else

goes up my PSM not can to spend more

money anyway so all of that being said

this is basic DPA you should be

doing this so let's actually take a

moment and unlock the superpower that

DPA provides that literally nobody is

talking about and I have done on every

account for years and actually cost you

next to nothing and will help you make a

lot more money hey guys real quick if

you want to learn my Sops and Frameworks

for how I scale businesses and Brands

and Facebook ad accounts check out the

first link down below for the Facebook

ads NBA program it's literally the

greatest investment you can make in the

growth of your future it's lifetime

access to not only an expanded

curriculum with new courses every single

week but also a community of people

around the world and weekly calls with

me where we dive into not only the

latest news but also your ad accounts

and fix your problems so that being said

check it out first link down below and

let's get back to this because we're

about to expose something

amazing let's do it so first off you're

probably used to be using DPA ads to

reduce your CPA or God forbid give you a

good row as but let's start to use it to

take a look at information that's

actually 10 times more valuable now

before we get started a dynamic product

ad is a product catalog it's the digital

version of a magazine that that a brand

might send you in the mail that lets you

see all of the products that they sell

so let me ask you a question what

products your customers care about and I

know you love your post transaction

surveys and believe me and I'm not here

to say that tools like no Commerce don't

have value I'm here to say that they

only tell you about the people who buy

from you here's the problem if your

conversion rate is say 2% and less than

50% of people fill out that survey you

actually don't know anything about over

99% of the people that come to your

website wouldn't that be important

information to know you don't know what

they're interested in you don't know

what's grabbing their attention you have

no concept of what they're looking at in

your store and before you say yes I know

you could look at GA for this

information but that isn't all of your

products based on an equal opportunity

for what people want to see GA is going

to tell you how good your cro was at

forcing people to take the path that you

wanted them to GA will never tell you

what people given absolute freedom to go

inside of your store and grab whatever

they want are actually interested in so

let's use the world's greatest market

research and intent creation device to

actually do market research and create

intent to help us much better monetize

the attention that not only we're

earning but also paying for and not only

with Facebook but with literally every

click that comes to our store so here's

what we're going to do go to your DPA ad

set so let's go to breakdown and hit

delivery now if you scroll all the way

to the bottom you're going to see this

thing called product ID now we're

getting report on the spend and clicks

and performance by the actual products

your store sells with respect to how

they're shown inside the DPA ad very

often when you run this you'll find that

the product you're spending the most of

your money on is isn't even the most

popular product people actually care

about and not only does this validate

the idea that your hero product does not

have to be your number one selling thing

majority of Nike's Revenue doesn't come

from Jordans but it also gives you a

great insight to where you have a lot of

opportunity and maybe what you're

spending all of your money on with most

of your ads is actually what's on top

what's the second most popular product

when people decide to not buy from you

what product gets their attention again

now it's really interesting here is when

you begin to look at your view content

audience and your ad to card audience

and the results aren't exactly the same

you're going to start to understand what

products ear attention but don't create

intent and vice versa this is incredibly

useful information but it doesn't stop

there and remember you'll never get this

information from a post-transaction

survey cuz these people didn't buy so

you're not getting their information

you're not getting their feedback

remember you're getting less than one

person % of the people that bothered to

click on an ad and come to your store or

that may have found it organically that

try things out and ultimately decide not

to buy you're getting less than

1% of those people to talk to you to

make optimizations which is an

incredibly biased data set to begin with

so what products do people want from you

but ultimately don't buy and what

products earn a lot of attention and

drive a lot of traffic but aren't things

that you're promoting what if we start

to use these and our emails flows and

our oneclick upsells to improve the unit

economics of the ads we're running in

the first place what if we actually give

customers the products they want this is

your own Facebook Centric version of the

bottom of the Amazon page when they say

people are interested in this are also

interested in these other things now the

real fun is what happens when you start

to apply this market research tool on

the people who actually did buy from you

if we were to Target our ads to

everybody that's purchased from us

before what is the product that most

efficiently earns their attention and

creates intent for them to buy again

what if the most popular thing isn't

actually what you sold them in the first

place meaning that your repeat customers

are actually interested in an offer that

isn't the hero offer that you are

promoting to begin with and really

meaning that what if people are complex

individuals and what they want from you

isn't what they bought from you the

first time what if you changed your

homepage how does this report change my

favorite use of this information is to

actually look at this analysis to create

bundles so that I can offer people the

products and services and packages that

they're most interested in and I'll

never get this information from a

post-transaction survey where less than

1% of the people who I tried to make buy

a certain thing actually gave me the

feedback and they're only ever giving me

the feedback on the journey I tried to

force them to take in the first place

based off of my own preconceived notions

to begin with how many months or years

of Shopify or wo commers receipts are

you going to have to analyze to get an

answer that isn't even close to this

accurate or actionable how much LTV are

you sacrificing by not actually giving

customers the offers they want from you

how much aov are you losing out on by

not finding the right pairings of

products and offers because you're just

looking at it from the brand owner

perspective and not letting your

customers tell you literally what they

want to spend money on

how much are you letting your

pre-existing customers with your

pre-existing funnel and your

pre-existing ads based on your

preexisting

preconceptions inhibit the success and

performance and upside that you

ultimately deserve if you actually

started to pay attention to what they

wanted so there you have it now down

below again you're going to see links to

disruptor school Facebook ads NBA

program the newsletter a lot of of other

goodies down there including the merch

store and disruptor agency so with that

being said I just want to say that I

love diving into these accounts and I

hope you find this stuff valuable and

what you see inside the NBA program and

what you see inside disruptor school is

like 10,000 times more of this and we

can do this together inside of your ad

account if you want to join that that's

fine there's also a link for the

Consulting down there as well and you

can book 15 minutes up to an hour up to

a whole day of my time to give you the

success and confidence that you deserve

now if you're listening to the podcast

please give me five stars rate and

review and all of that fun stuff you're

watching on YouTube again don't forget

to like And subscribe and until next

time I'll see you on the internet bye