Facebook Multi-Product Ads: How to Maximize ROI
Published: April 27, 2015
Author: Michael Erickson
Over the last few years, Facebook ads have come a long way. What was once a Wild West Network with low-quality advertisers has blossomed into a mature ad platform. It’s common now that users will find ads on Facebook interesting, relevant, and useful.
The mixture of combinations between demographic, interest, behavioral, and lookalike targeting has become so powerful that more and more businesses are incorporating Facebook ads into their paid traffic strategy.
As we’ve seen with AdWords, new features are being released regularly on Facebook Ads. In a recent update, Facebook Ads has added a new feature that can boost engagement, Click-Through-Rate (CTR), and Conversion Rate. Today, let’s get acquainted with Facebook Multi-Product Ads.
What are Facebook Multi-Product Ads?
A single Multi-Product Ad contains an image carousel of 3-5 images. Each image gets unique ad copy and a unique destination URL. You can decide to keep your individual images and URLs closely related, or test different offers at once. Multi-Product Ads are News Feed-only, and can appear on desktop and mobile.
Just like sitelinks or call extensions on AdWords, Multi-Product Ads on Facebook allow you to stand out in the usual News Feed stream. At this point in time, this is the only placement in the News Feed that allows users to scroll left to right. On mobile, it’s very engaging, as scrolling this way is still new and unique. News Feed CTR is usually quite high, so with Multi-Product Ads, prepare to beat your past best News Feed CTR.
There’s data to support this, too. In an early beta-launch, e-commerce company Nomorerack noticed CTRs increase as much as 42%. For a typical e-commerce customer, we’re seeing CTRs around 5%.
Why Are Multi-Product Ads Important?
Congratulations! If you’re reading this post, you’re part of the early-mover advantage. In the world of paid traffic, new features breathe new life into any account. New ad types are being tested by advertising networks for increased engagement over the status quo. After all, the more people engaging with ads, the more money they make. For advertisers, this means you can capitalize on this increased engagement before your competition.
Combine early-mover advantage, and an ad type that is fun to engage with, and get ready to watch your CTR skyrocket and cost per click (CPC) decrease with multi-product ads!
Setting up Facebook Multi-Product Ads
The new ad format is very simple to set up inside Facebook’s Power Editor.
1. Log into Power Editor
2. Go through the process of creating a new campaign, and ad set. Alternatively, you can place your new ad inside an existing ad set.
3. Select ‘Multiple Images and Links in One Ad”
4. Add a headline, text, and image to each mini-ad. You can select up to 5 images. Images are recommended to fit 600×600 pixels.
Best Practices for Multi-Product Ads
Setting up the ad is simple enough, but what about optimization? There are a few things to think about with this new ad type.
Turn on Creative Optimization Rotation
Facebook has an option to ‘automatically select and order images and links’. Keep this option selected. Facebook will display the most engaging image at the beginning of your image set.
Tag Every Link
UTM tracking helps you keep track of your ad’s performance inside Google Analytics. Since Facebook Ads will not tell you which one of your links in your multi-product ad is converting, you’ll want to tag everything individually.
Use Google’s UTM Builder to make sure each link gets tagged individually. In the example below, you can see I added the UTM_Content: image1. I would repeat this process for the other images in my ads, to see which converts best inside Google Analytics.
Maximize Your Sales Funnel
Seize the unique opportunity to display several small ads at once. Depending on your audience targeting, some ad viewers may be at the bottom of the sales funnel. Others may be hearing of your product for the first time. If you are targeting a large audience, combine top-of-funnel and bottom-of-funnel ads – for example, a PDF download and a product purchase.
Additionally, you can highlight your individual selling propositions. Instead of trying to fit 3 marketing messages into one ad, you can now link to 3 separate benefits to your product. Users have the choice to dive into areas that resonate the most with them.
Of course, you can simply display multiple product of the same category.
Bidding Types: CPC or oCPM for New Multi-Product Ads?
One of the most common questions with Facebook Ads is: Should I use CPC or oCPM?
-CPC = cost per click, you pay for every click of your ad
-oCPM: optimized cost per 1,000 impressions
Let’s consider the situation. Multi-Product Ads will likely get a strong CTR. With oCPM, you’ll pay the same for a 1% CTR as a 5% CTR. Since CTR will be strong, it’s likely more profitable to use oCPM with ads that get a high CTR with your target market. With CPC, you’ll pay for every extra click you get, so you may pay 5x more for a 5% CTR than a 1% CTR.
New ad formats are typically met with higher CTRs, lower CPCs, and better conversion rates. Multi-Product ads are no exception. Capitalize on your early mover advantage, and use this new ad format well before your competition.