The meteoric rise in popularity of e-commerce over the past 15 years has changed the face of consumer goods sales in a profound way. As late as the mid-2010’s, success for a brand could hinge on its offline presence and visibility, as in many markets, particularly in Southeast Asia, e-commerce and local logistics were nascent and unrefined. As global giants Amazon, Alibaba (including Lazada), and JingDong, among others, have grown exponentially, other web platforms have sought growth opportunities on the crest of the e-commerce wave. Facebook collaborative ads are one such opportunity and have emerged as one of the premier ways for a brand to gain valuable exposure and to drive sales on these popular platforms.
The Collaborative Performance Advertising Solution (CPAS) offered by Facebook is an immediate benefit from brands who do all or a majority of their sales on third-party e-commerce sites. To understand the benefits, one must first get an understanding of the problem CPAS helps solve.
The Sales Growth Challenge
Without a proprietary platform on which to sell their products, brands are reliant on driving traffic to third-party retailers in order to make sales. These third-party platforms, however, more often than not withhold data (for user privacy reasons) accrued on their site from brand owners, meaning that brands are unaware of who and how many people visited their page with an intent to purchase. Marketers will know that these are candidates for remarketing, and without their data, those potential customers can be lost.
Similarly, standard ads run on Facebook that drive traffic to a third-party e-commerce site do not provide enough data about sales conversion. Marketers will be able to see who clicked on the ad, but not if that customer purchased or not. This is where Facebook collaborative ads filled a gap.
A Mutually Beneficial Solution
Before CPAS, marketers were left in the dark about the success and conversion rate of their marketing campaigns, lest they develop an e-commerce platform of their own. That incomplete perspective hampered sales offtake for brands and negatively impacted the third-party platforms’ sales as well since key data were lost. Through CPAS, brands have been able to receive and interpret data from the third-party platforms to help them optimize their advertising campaigns, while third-party platforms benefit from increased site traffic and sales offtake.
How to Use Facebook Collaborative Ads
Brands looking to improve their marketing and sales offtake should take advantage of CPAS by collaborating directly with their third-party e-commerce platforms. On Facebook, brands can set up dynamic advertising campaigns. These dynamic ads target users who have recently visited or viewed that brand’s website, mobile app, or other online entity, automatically promoting to them products they interacted with or may be interested in. By clicking these targeted product ads, users are taken to the e-commerce platform directly, rather than to the brand’s website.
In a competitive product landscape, tools like Facebook collaborative ads provide data-driven solutions that benefit both brands and e-commerce platforms. The sales results will speak for themselves.