Weekly Digital Breakdown – 9.18.20
Weekly Digital Breakdown
Sep 18 2020
Facbook Connects to VDP for Auto
In an effort to help drive the way auto buyers research and shop before stepping on the lot, Facebook is enhancing their Automotive Inventory Ads for dealerships. They will now include an additional mobile optimized experience by connecting to a dynamic Vehicle Details Page (VDP) on Facebook. The pages will utilize the dealers inventory feed for updated pricing and availability.
Shoppers will now be able to research vehicles, check out up-to-date inventory and connect with dealers directly through Facebook Messenger. By eliminating the need to leave the platform for additional information and directly tapping into the dealer’s database, a more personalized shopping experience can be provided. Facebook also plans to allow auto sellers to utilize premium ad slots to better reach high-intent auto shoppers who are most likely to purchase.
For more details on the acceleration of online tools for auto shoppers and growing trends in the industry, check out our recent Coronavirus and Automotive customers survey.
Retailers Need a Holiday Miracle
This year has been anything but predictable but one thing retailers are projecting is their reliance on the holidays in order to continue operations. In a recent survey conducted by PayPal, 20% of those polled said they are dependent on holiday sales for survival but over half (57%) haven’t started a proactive plan to increase business when the survey was conducted in August.
Much of the lack of preparation is likely due to unknown consumer shopping behaviors with health guidelines continuing to change rapidly. Financial concerns are also in play with the loss of jobs and the effects of the impending election still being considered.
To diversify their sales channels, 39% of respondents said they plan to sell their products on digital marketplaces outside of their own site and 31% will utilize social media for ecommerce. These efforts are an attempt to make up for a likely loss in store foot traffic in physical store locations.
While businesses are cautiously relying on the holidays for the push they need, if we have learned anything this year, it’s to expect the unexpected.
Facebook Will Limit Ads For Better Results
Starting in February 2021, Facebook will implement limits on how many ads an advertiser can run concurrently. The intention is to help optimize performance and maximize impact. This is especially important during the “learning phase” of a campaign when Facebook is exploring the best way to deliver an ad set for maximum conversions at the lowest cost. Facebook noted that when an advertiser runs too many ads during this phase, the ads end up competing against each other which prevents proper learning for their systems.
Advertisers will be held to different ad volume limits based on the tier system below:
The limits will go into effect on a rolling basis, giving time for strategy adjustments. Facebook hopes by refining its system to show better performance, more brands and ad dollars will be drawn to the platform.