Snapchat Dynamic Ads now in beta: Auto-generates ads from product catalogs

Snapchat has opened a beta for Dynamic Ads, which automatically creates — and updates — product ads to run on the app.

The Dynamic ads are available in a wide array of templates and aimed at retail, ecommerce and DTC brands that have a product catalog uploaded to the platform. As product details such as price or availability are updated, the Dynamic Ads adjust accordingly.

“Snapchat Dynamic Ads now allow brands to create real-time optimized mobile ads quickly and at scale, with products showcased in visually-appealing templates that feel native to the app,” said Snap Group Product Marketing Manager of Direct Response Kathleen Gambarelli.

The beta for the ads is available to all advertisers, but the ads will only reach U.S. users for now. The company plans to expand it to more markets in the coming months. Advertisers must contact Snap to part of the beta.

Why we should care

As we head into the holidays, ecommerce brands will be looking for every available opportunity to reach shoppers. Snapchat’s Dynamic Ads give the platform room to elbow its way into the social media ad budgets that are largely allocated to Facebook and Instagram. Considering Snapchat’s reported hold on Gen Z and Millennials (more than 75% of 13 to 34-year olds in the U.S. active on the app), it is a prime platform for advertisers targeting younger audiences.

As with the dynamic ad capabilities of Facebook, Google and Pinterest, Snapchat’s Dynamic Ads reduce the amount of time and effort it takes to create and maintain product ads.

Shady Rays Polarized Sunglasses was given early access to Dynamic Ads and reported a 66% decrease in cost per purchase and 286% increase in ROAS compared to a retargeting initiative that ran simultaneously. “Having used their Catalogs to manually create ads in the past, we were excited by the prospect of automating this process end-to-end,” said the company’s CEO Chris Ratterman.

More on the news

• Vitaly Design, another advertiser given early access, said Snap’s Dynamic Ads saved the company time and showcased products “in their best possible light,” resulting in a 21% decrease in cost-per-purchase and a 29% increase in ROAS.
• Snapchat reports users spend an average of 30 minutes a day on the app, with daily users opening the app more than 20 times a day.
• For advertisers that reach out to the company now to set up Dynamic Ads campaigns, Snap said the ads will start running within one to two weeks.