Comparison: Meta Dynamic ads vs. Non-Dynamic ads
When advertising on Meta for our DTC portfolio, we typically see that dynamic ads have a higher conversion rate percentage; however, the amount of website visitors is lower and CPC is higher (costing you more money).?
Why do dynamic ads have a high conversion rate??
Our theory is that this could be due to meta being “too good” at showing each person content that gets them to convert. And since people see exactly what they want to know, one of three things happens:
However, non-dynamic ads give just enough information that interests a user and creates the need for more, leading them to click and browse. Non-dynamic ads generally have a lower CPC and 2x higher CTRs.?
What are Dynamic vs. Non-Dynamic Ads?
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Why would a brand focus on increasing traffic and lowering CPCs rather than directly increasing conversions?
During this time of “do more with less” you’re probably looking for ways to shift marketing dollars. Focusing on increasing traffic to your website could be a way to indirectly increase conversions to your site, giving you better chances of purchases (while costing you less money).
When we pivoted to non-dynamic ads, here’s what happened…
The CPCs went from $0.43 to $0.33. AND when we compared the dynamic vs. the non-dynamic ad, we saw that the brand had a higher conversion rate to the site with the non-dynamic ad.
With budgets shifting, this could be a cost-effective way to increase traffic to the site and increase conversion rate opportunities. Focusing on increasing traffic will save you money on CPC in the short term and create a strong retargeting audience giving you the opportunity and budget to spend down the pipeline (on a primed audience).?
Important note - STILL pay attention to conversions on your site. The conversion signal (pixel fire, CAPI, etc.) is going to feed back into the algorithms and help optimize what is converting. So while you may get cheaper CPC/traffic, if it doesn't convert, you may end up paying more in the long run as it optimizes to the wrong areas.?
Founder/CEO Full Throttle Falato Leads - 25 years of Enterprise Sales Experience - Lead Generation and Recruiting Automation, US Air Force Veteran, Brazilian Jiu Jitsu Black Belt, Muay Thai Student, Tenor Saxophonist
3 个月Warren, thanks for sharing!
Principal at Ridge Strategic LLC
1 年Warren, another masterful piece, for me, have very quickly jumped to the top of my list of "must-reads", particularly w/ respect to #DTC. If you don't mind and have the chance, had a couple of clarifying Qs: 1. When you note that w/ non-dynamic in your test, you saw both the anticipated decline in costs-per-click, but also a higher conversion rate to the site, were you surprised by the latter (given that broadly, perhaps as a result of any or all of three rationales you noted, dynamic seems to have higher conversion rates, albeit at a higher cost)? Do you think that outcome was brand-specific or a potential basis to have the best of all worlds with non-dynamic? 2. I note the particular terminology, "conversion rate to the site" - no doubt, the question arises from my own lack of awareness, but is that a different type of conversion than the typically defined "percentage of visitors who perform defined desirable action x"? 3. Profoundly important pt re: continuing monitoring of conversion rates so as to avoid a negative feedback loop w/ the algorithm Great stuff, thanks! #dtc #marketing #business