As retail and e-commerce businesses grow, keeping profit margins steady is crucial. Marketers are always looking for ways to improve performance and get the most out of their ad spend.
To help businesses grow profitably, Meta is investing in AI tools like Andromeda, which analyzes millions of ads to deliver the right message to the right person at the perfect time. This makes ads more efficient and cost-effective.
Meta is introducing new tools and placements that work with AI-powered Advantage+ sales campaigns, giving businesses more ways to boost performance and drive sales both online and in stores.
Helping Customers Shop Online and In-Store
1. Meta Expands Omnichannel Ads to More Advertisers
Last fall, Meta began testing ads that show nearby store locations to people most likely to shop in person. Now, it is expanding this feature to more advertisers. These omnichannel ads will guide customers to the nearest store with products in stock and highlight discounts, making it even more appealing for shoppers to visit.
According to a Meta report, Advertisers using omnichannel ads saw 15% lower cost per acquisition (CPA) and 12% higher return on ad spend (ROAS) compared to their regular campaigns. With this feature becoming available globally this summer, advertisers can develop new omnichannel strategies just in time for the holiday season.
Craig Brommers, CMO of American Eagle, shared, “Ads are a key part of our strategy to reach younger audiences and drive sales both online and across our 800+ stores. With omnichannel ads, we saw a 48% higher ROAS with our core audience of 18-24-year-olds. We’re excited about these results and will continue to use omnichannel ads in our future marketing strategies.”
Source: Meta
2. Boost Online Sales with Shops Ads and Simplified Checkout
Meta is rolling out updates to help drive online sales with Shops ads, which use AI to target people most likely to make a purchase through Facebook or Instagram Shops. This is combined with Advantage+ sales campaigns to make ads even more effective.
To make this optimization easier for more advertisers, Meta will introduce a simplified checkout experience. This will guide people from the shop to the advertiser’s website to finish their purchase after building their cart.
This update is going to be launched by this spring and it will help advertisers obtain more benefits at checkout. By this way it allows Meta to test this feature. This will be available in new markets like Australia and Taiwan later this year.
Source: Meta
3. Meta Combines Partnership Ads with Advantage+ Catalog Ads for Enhanced Results
Last year at ShopTalk, Meta introduced the option for advertisers to add catalog items to featured images or videos in their ads. This helped advertisers achieve a 9.3% lower cost per acquisition (CPA) by showcasing their products alongside creative content.
This half, Meta is allowing advertisers to combine Partnership ads with Advantage+ catalog ads, bringing the power of creator content into the mix for even better results.
Source: Meta
4. Optimization to Boost Product Discovery and ROAS in Ads
Meta is introducing a new optimization that helps show more products from your catalog when promoting a specific product set using Advantage+ catalog ads or Shops ads.
For example, if a fashion brand is highlighting jackets from their spring collection, the system can also suggest a dress that a shopper might like, based on their interests.
In early tests, advertisers saw an average 14% increase in return on ad spend (ROAS) when using this feature.
Exploring new ways to use gen AI for retail and e-commerce businesses
Meta Enhances Shopping Experience with AI and Personalization Features for Advertisers
In the upcoming days, Meta will focus on features like using AI to place clothing on virtual models. This will help customers get a better idea of how clothes might look and fit, making them more confident in their purchase decisions, while also allowing advertisers to create more engaging experiences.
Currently, advertisers can use background generation in Catalog ads and Meta is testing new ways to personalize text for ads. These updates will help advertisers showcase their products more effectively and create ad copy that connects better with customers.
Helping advertisers create always-on demand
1. New Ad Format and Tools to Capture Real-Time Demand
Beyond just seasonal events, marketers turn to Meta to create special moments that drive consumer interest and lead to sales. To help advertisers take advantage of these key opportunities, Meta is rolling out a new ad format and updating tools to make it easier to capture and convert demand in real-time.
Source: Meta
2. Meta to Test Ads in Facebook Notifications for Enhanced Customer Engagement
In the upcoming days, Meta will begin testing ads in Facebook notifications. This new placement offers advertisers a fresh way to connect with potential customers and drive product discovery or reconsideration. Ads in notifications will allow advertisers to reach people who have previously engaged with an ad or shown interest in their content. For retail and e-commerce businesses, this is an additional opportunity to remind shoppers about special offers or products in a new space.
Source: Meta
3. New Feature to Collect Email Addresses Before Sharing Promo Codes
This spring, Meta will introduce a new feature that lets advertisers ask for email addresses before sharing promo codes in their ads. This will help businesses build stronger relationships with their customers by collecting contact information while offering special deals.
4. Site Links to Instagram for Enhanced Ad Engagement
Meta is expanding site links to Instagram, following their success on Facebook. Site links let advertisers add multiple links in a single image or video ad, helping users easily access the content they care about.
Advertisers who have used site links have seen a 4.5% decrease in cost per acquisition (CPA) and a 3% boost in click-through rates on Facebook Feed. For example, Nissan tested site links in Europe to drive shoppers to more details about their vehicles and saw a 39% increase in landing page views and a 19% rise in qualified site visits. This new feature on Instagram will give marketers even more ways to engage potential customers.
Coming to an end, these Meta’s updates are designed to help businesses improve their advertising and connect with customers more effectively using AI-driven tools.
