Facebook Is Piloting Multi-Product Retail Ads In News Feeds

By Christine Kern, contributing writer

New ads underscore the value of social media for connecting with customers.

Social media is a powerful tool for connecting retailers to their potential customers. To that end, Facebook has begun testing news feed ads that allow retailers to use a multi-level format to promote multiple products, according to Adweek. The move follows on the heels of the Facebook announcement that brands operating chatbots on its Messenger platform can now connect direct to their chatbots via news feed ads.

Among the retailers testing the new ads are Lowe’s and Michael Kors, and while the pilot is still in its infancy, Michael Kors has already reported a sharp drop of 79 percent in its cost per conversion. The ads use a primary image or video and include related products below. When a user clicks on the ad, it launches a second page full of additional products, and another click delivers them to the advertiser’s website.

Adweek likens the new Facebook advertising option to Google’s “showcase shopping” ad format that launched this summer, which connected retailers to potential buyers who might be interested in particular products even when their search wasn’t quite exact.

Facebook also enabled Dynamic Ads in September, allowing brick-and-mortar retailers to structure ad campaigns that reflect actual retailer inventory, and close off the ads when items are sold out. And Instagram began allowing more than a dozen retailers to tag products in photos that lead directly to purchase options just a few weeks ago.

And as Innovative Retail Technologies reported, chatbots and messaging apps are becoming a more popular way for retailers to connect with their customers. A recent study from [24]7 found that the new chatbot technology and other options via social media provide better, more efficient and engaging customer service.

As consumers become increasingly demanding about how their orders are fulfilled, new options like the multi-platform ads, chatbots, and other innovative approaches will help retailers attract customers, meet their needs, and build their loyalty for the future.