Facebook Announces Dynamic Ads for Instagram

May 10, 2016

Digital Marketing Anna Torres By Anna Torres

Have you heard the news? Today, Facebook announced expanded functionality for Dynamic Ads (formerly known as dynamic product ads). The bigger news: Dynamic Ads now function on Instagram.

While dynamic product ads have been a staple of Facebook’s advertising lineup for about a year now, advertisers on Instagram — the wildly popular image-based platform and Facebook subsidiary — have been limited to “traditional” ad formats (photos, videos, carousel ads).

This is a huge leap forward for the photo- sharing platform, which boasts more than 200,000 monthly active advertisers and more than 400 million monthly active users. According to a forecast by eMarketer, these new ad capabilities will skyrocket Instagram’s projected ad revenues to $2.81 billion by 2017, accounting for nearly 14% of Facebook’s mobile ad revenue.

Dynamic Ads, Explained

Retargeting ads are nothing new in the world of e-commerce. In fact, their ability to draw shoppers back to abandoned carts or previously visited product pages have made them increasingly popular for both retailers and branded manufacturers in recent years.

The Instagram announcement is great news for retailers and brands with their eyes and budgets skewing toward mobile devices. With 90% of mobile users’ time spent in apps, and 98% of Instagram users on mobile, it makes sense for Facebook to strengthen Instagram’s advertising capabilities.  

With Dynamic Ads on social platforms such as Facebook and Instagram, you can pull data based on browsing and purchase behavior and feed it back to custom, curated audiences in the places they’re most likely to see it: their social news feeds. In other words, you’ll have control over where these ads appear on Instagram — and who’s seeing them. The ads are driven by product data feeds, and serve as both an additional touchpoint as well as an opportunity for post-purchase upsells of similar products or related accessories.

ChannelAdvisor and Instagram, a #Winning Team

ChannelAdvisor offers full support for Instagram Dynamic Ads through ChannelAdvisor Digital Marketing. With the help of our powerful Data Transformation Engine, you can create, schedule and send your product feed directly to Instagram (or Facebook), as well as manage your ad campaigns and access performance results under one digital roof.

Want to start using Instagram dynamic product ads to maximize your reach? Send us an email at info@channeladvisor.com, we’d love to talk!


Blog post by Anna Torres, social media and blog specialist, ChannelAdvisor