In the ever-evolving landscape of social media advertising, Meta (formerly Facebook) continues to innovate its ad platform, offering marketers new tools to enhance campaign performance. One tool that’s been around for a while but also gaining traction is Meta’s dynamic ads.

In this blog post, we’ll explore the benefits of using dynamic ads, how they differ from traditional ad formats, strategies for maximizing their potential, and the outlook for dynamic ads. But first, we’ll discuss the recent shifts our paid media team has observed in the ad-buying space on Meta.

The Shift in Meta’s Ad Algorithm

Over the past year, Meta has made significant changes to its ad platform. Particularly placing greater emphasis on the quality of content, modifying the campaign/ad set-up, and wanting more control given to its AI-driven algorithm. This shift has made it challenging for advertisers to achieve the results they were accustomed to with traditional ad setups. Some key changes our team has noticed in Meta’s advertising approach include:

• Content-Driven Performance: We understand the quality of content is a major factor when it comes to success. However, we’ve noticed an algorithmic shift where Meta favors ads with higher-quality and engaging content. Content quality is important more than ever.
• Introduction of “Advantage+” Features: Within the ad platform, Meta has rolled out several “Advantage+” features in the past 12 months. Features such as Advantage campaign+, Advantage+ audience, and Advantage+ placements are tools within Ads Manager that give advertisers the option for Meta to change their campaign set-up or ad at its discretion. Meta is constantly rolling out new features that encourage advertisers to relinquish more control to its AI-powered systems.

Seeing these changes within the platform shows that all signs are pointing towards Meta wanting more control of your campaign, ad set, and ad. Where do dynamic ads play a role in this? In the next section, we’ll break down dynamic ads and how the algorithm changes have benefited this ad format.

Meta Dynamic Ads

Meta dynamic ads have been around since 2015 (not to be confused with dynamic product catalog ads), so this ad format has been available for quite some time. But for those who are unfamiliar with this ad format, dynamic ads allow advertisers to use multiple ad components (i.e., assets, primary copy, CTA buttons), which Meta can mix and match combinations to achieve results at the lowest cost.

Here’s what you can include:

• Up to 10 images or videos
• 5 primary text options
• 5 headlines
• 5 descriptions
• 5 call-to-action buttons

This ad set-up is different from a traditional ad. For a traditional ad, you’re only allowed one asset (image/video) and one set of copy (primary text, headline, description) that is specific to that ad. Using interchangeable assets/copy for dynamic ads allows Meta’s algorithm the opportunity to create the best “grouping” of assets and copy to achieve the result we want.

The Ignite paid team has tested the dynamic ad set-up vs. a traditional ad set-up and has seen great results. Some benefits of using dynamic ads include:

• Improved Performance: In recent case studies using the Sales campaign objective, dynamic ads have shown significant improvements in cost-per-result. One client of ours experienced a 43% decrease in cost-per-result when switching from a traditional ad set-up to dynamic ads. The following month we saw an additional 10% decrease in costs. A separate client, which also used the Sales campaign objective, reported a 15% lower cost-per-result for their dynamic ad campaign compared to non-dynamic campaigns, resulting in more efficient online purchases. By allowing Meta’s algorithm more flexibility, it can better match ad content to individual users, potentially improving engagement and conversion rates.
• Efficient Testing: Dynamic ads allow for easy testing of different assets, headlines, and ad components without the need for creating multiple individual ads.
• Detailed Performance Insights: Meta provides breakdown reports on how each asset/copy performs, offering valuable data for future campaign optimization.

With Meta’s algorithm change and more emphasis on content, utilizing multiple different images/copy/CTA buttons gives Meta’s algorithm “more to work with” to help achieve those results.

 Maximizing the Potential of Dynamic Ads

If you’re interested in testing this ad format out as it stands today, please see our suggestions below:

• Experiment with Different Objectives: Test dynamic ads across various campaign objectives to find where they perform best for your brand.
• Consolidate Ad Sets: Use dynamic ads to streamline your campaign structure, potentially reducing the number of ad sets needed.
• Analyze Asset Performance: Regularly review which assets drive the most engagement, clicks, and conversions to inform your content strategy.
• Stay Informed: Follow Meta’s updates and new features to ensure you’re leveraging the latest tools and best practices.

 The Future of Dynamic Ads… What are Flexible Ads?

You’re unofficially a professional in dynamic ad setups now! So, you’re probably excited to test this out for yourself. Welp. I have some interesting news to share with you. As of late June 2024, Meta announced that dynamic ads will begin to phase out of Meta ad accounts and will be replaced with flexible ads. Don’t be too discouraged – flexible ads are very similar to dynamic ads, so you can still use suggestions above for assistance. While flexible ads are very similar to dynamic ads, there are two key differences you should be aware of. They are:

1. Single Call-to-Action: Unlike dynamic ads, flexible ads will only allow one call-to-action button (i.e., Learn more, Shop now) per ad.
2. Automatic Carousel Creation: Flexible ads can create carousel ads automatically, combining multiple assets, if the algorithm thinks it can convert users to take a specific action.

This transition from dynamic ads to flexible ads only suggests that Meta is continuing to invest in content variety and machine learning to help your campaign performance.

Conclusion

As we look towards the future, it’s clear that Meta is committed to evolving its ad offerings. It represents a shift in social media advertising. By staying adaptable and leveraging these new tools, social media marketers can continue to drive efficiency and performance in their campaigns. By embracing ad formats that offer content variety, advertisers can potentially achieve better campaign results, gain valuable insights, and stay ahead in the competitive digital advertising landscape. Remember, the key to success with dynamic ads lies in providing high-quality, diverse content options and using the algorithm to deliver the right message to the right user at the right time. As you implement these paid media strategies, continue to test, analyze, and refine your approach to maximize your social media advertising ROI.