You're using Facebook DPA Ads COMPLETELY WRONG!
Summary
TLDRThis 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
📈 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.
🔍 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.
📊 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.
🚀 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.
Mindmap
Keywords
💡DPA Ads
💡CPA
💡Retargeting
💡Product Feed
💡Carousel
💡Event Manager
💡Blended CPA
💡Market Research
💡Intent Creation
💡LTV
💡AOV
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
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