Almost everyone who has ever looked for information on the internet or engaged in online shopping is familiar with this phenomenon: just a few moments after the transaction has taken place, notifications and information about similar results or products start popping in on different platform over the following days. Apart from one’s own perception of whether this advertisement is helpful or rather interfering, the question automatically arises: how does this system work? The answer to this is dynamic ads.

What are Dynamic Ads?

In general, dynamic ads are personalized advertisements on social platforms used in the field of e – commerce marketing. Based on a targeted algorithm, customers are automatically suggested offers based on past searches. Often, these ads are used as a supplement and extension to existing online – marketing strategies. This advertising strategy, which is still relatively new by comparison, is particularly useful for companies with an extensive website and a constantly varying range of products or services.

For Dynamic Ads to be applied:

1.  A JavaScript code and a collection of data must be set up. With this data it is possible to track conversions, optimize ads, and create a target group.

2. Create your own product catalogue with images, advertising text, and other details such as price, category or product group.

Why are Dynamic Ads so popular?

According to Facebook, Dynamic Ads are their most effective revenue generator and still a flexible, cost-effective and time-saving way to place ads at the same time.

In general, dynamic ads and other advertising formats lead to an improved conversion rate and thus growing brand awareness, which in return results in the desired maximization of sales. This is achieved, among other things, with the so-called retargeting strategy. In this case, shopping cart abandoners are won back with targeted, personalized offers, reminders and promotions, and enticed to make a purchase. Dynamic ads also offer the advantage of not being hindered by ad blockers and can therefore be used as desired. As a result, the maximum reach and visibility of a product or service, in online communication channels is exploited.

Probably the biggest advantage of dynamic ads is their acute relevance for buyers. With the help of an updated target group analysis, only relevant products are advertised to the customers. The additional right timing caps the tailored offer and makes it much more effective.

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The travel industry as an example of ideally placed dynamic ads

One example of a sector that particularly benefits from dynamic ads and owns a large and complex range of products and services is the tourism industry. After researching travel destinations or having booked a trip, a particularly large number of recommendations for hotels, flights or activities are offered. This enables the provider to offer further travel details and information in a meaningful way.

When you think of marketing rather than soccer regarding the European Championship

In the past, one may have noticed that advertisements in a German soccer stadium were sometimes announced in a language other than German. At the same time, German-language perimeter advertising appeared in television broadcasts from foreign stadiums. This raises the question of what is the reason behind that. The flexibility of technology allows so-called double productions. On the one hand, TV stations can place their cameras in such a way that they always present national advertising in the background. On the other hand, the advertising around the field can be exchanged during the broadcast with the help of technology developed by the Fraunhofer-Gesellschaft. This makes it possible to display target-group-specific advertising during live broadcasts.

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In summary, it can be said that advertising on the Internet will become increasingly important for companies and attractive for online buyers in the future. However, it can be assumed that the technology industry will develop so quickly that dynamic ads will be overtaken by other advertising strategies in the near future.