Collaborative Ads: A strategy for brands to increase ROI
With the constant development in technology, shopping online has become simpler than ever. Despite the ups and downs, online stores are on the rise and the time spent online is growing exponentially.
Facebook has developed a way for brands and retailers to increase their online presence and sales through Collaborative Ads.
What are Collaborative Ads?
Collaborative Ads is a platform created by Facebook to simplify the process of purchasing products online. A process through which retailers set up dynamic ads and create a product catalogue in order to categorise products that belong to a specific brand. Brands can then use this catalogue segment to run dynamic ads to target the appropriate audience who have shown interest in their products. For both, the brand and retailer to benefit, the dynamic ad will always lead the audience to the product page.
Even though the collaborative ads on Facebook lead to the retailer’s catalogue, and the ad leads to the retailer’s page, the brand benefits as it gives them a chance to positively impact the sales of their products (Hannah, 2019).
As collaborative ads on Facebook have gained popularity, Instagram collaborative ads have been put in place too. With Lazada having several promotional campaigns running such as the Mayday campaign, brands have an opportunity to capitalise on revenue and improve the visibility of their campaigns.
What is CPAS, and how does it work?
CPAS is an acronym for Collaborative Platform Advertising Solution. It allows brands to partner up with e-commerce platforms such as Lazada and Shopee. The aim of this collaboration is to run measurable ads with positive results. CPAS has helped with budget allocation and campaign planning for several brands due to transparency and access to real time data.
Before collaborative ads, brands did not have the ability to track the success of their ad campaigns if they didn’t have an e-commerce platform. With this new partnership, brands are able to run ads, partner with e-commerce platforms on which they sell their products and analyse the success of their campaigns. Being able to quantify success has enabled brands to improve their marketing strategy and target audiences accurately.
Below is an example of Estee Lauder Thailand’s Facebook Collaborative Ad with Lazada.
Estee Lauder Thailand (brand) has partnered up with Lazada (retailer). The product catalogue segment created by Lazada is used by Estee Lauder Thailand to run a dynamic ads campaign. The link provided by Estee Lauder Thailand in their ad redirects the user to Lazada where they can complete their purchase or get more information about the product.
The four-step process:
1. The Dynamic Ad run by the brand is shown to a potential customer.
2. When the user clicks on the image in the Collaborative Ad, it leads to a button ‘shop now.’
3. Clicking on the ‘shop now’ button redirects the user to the retailer’s website
4. The user can browse through the brand’s product and ultimately purchase the product through the retailer’s website.
*Tip: In case the user doesn’t complete the purchase but adds a product to cart, you can create a re-targeting campaign to prompt the user to complete their purchase.
With the use of collaborative ads, both parties will be able to track the performance of the advertisement through measuring metrics such as Reach, Impressions, Conversions, Clicks and Return on Ad Spend.
Benefits of Collaborative Ads
1. Accurate measurement of ads performance and conversions
2. Ability to drive traffic to the retailer’s website to purchase a brand’s product
3. Access to real-time reports – all aspects of the campaign
4. A safe and reliable platform to generate traffic and expand reach
5. Saving costs on developing a website
1. The ability to partner with various brands while ensuring safety
2. Increase in sales through various brands and increase recognition
3. Expand the reach of your platform through the brand’s collaborative ads.
The launch of collaborative ads has made brands become increasingly confident with ads they are running due to the visibility and transparency of results. Previously, brands didn’t have access to conversion rates due to data protection restrictions of certain platforms. Furthermore, with both parties, brands and retailers having access to data enables decisions to be made accurately with the application of data.
With such data Primal can assist in improving the performance of your ads, planning your campaign structure and making informed decisions at low costs. Get in touch with our sales team or get a free digital audit by filling out this form.