COLLABORATIVE ADS: A Powerful Tool for E-Commerce Marketing

As developments in technology continue to change and shape our world, online shopping has gradually become a part of our daily life. Hordes of online stores have popped up, and the growth rate of the online market is increasing exponentially. 

Facebook Collaborative Ads

Collaborative Ads were developed by Facebook to help brands and retailers increase their online sales growth. In this article, we will explain what Facebook Collaborative Ads, or CPAS Ads, are and how you can benefit from them.

What are Collaborative Ads?

Collaborative Ads were created by Facebook to help simplify the online purchasing process by allowing retailers to set up dynamic ads and create product catalogues that belong to each brand. Brands can then use these catalogues to run dynamic ads, targeting buyers who have shown interest in their products. 

This way, both the retailers and the brands themselves can benefit. Retailers are able to sell more, while brands increase awareness among their target audience. 

Usually, dynamic ads will lead the audience to the product page so there’s a higher chance for them to make a purchase since they do not have to leave Facebook and open a separate website to view the product.  

Although Collaborative Ads lead the audience to the retailer’s catalogue (which brands use for advertisement), brands still benefit in the long run. If retailers can sell more, they will eventually need to buy more from that specific brand. 

While Facebook Collaborative Ads can raise the popularity of products, Instagram Collaborative Ads are also a great tool. Lazada, for example, has launched several campaigns via Instagram such as its MayDay Campaign. Brands can use this tool to not only generate higher revenue, but also improve the visibility of their marketing campaigns. 

what is cpa

What are CPAS & How Do They Work?

CPAS stands for ‘Collaborative Performance Advertising Solutions’. In other words, they enable collaborative advertising, such as allowing brands to work with e-commerce platforms like Lazada and Shopee in order to yield a more positive performance. CPAS also help with budget allocation and campaign planning between multiple brands to ensure transparency and real-time access. 

Before Collaborative Ads were introduced, if brands do not have their own ecommerce platform, it was impossible for them to know which ads campaigns were most successful. But with this new tool, brands can join forces with ecommerce sites that sell their products to run ads. They can also analyse the success of their campaigns to help them improve their marketing strategy and target audience in the future. 

Here is a case study of the use of Facebook Collaborative Ads by Estee Lauder Thailand and Lazada.

Estee Lauder Thailand (brand) partnered up with Lazada (retailer). Lazada created the product catalogue which was then used by Estee Lauder Thailand to run a dynamic ad campaign. The audience would see a “Shop Now” button on the ads, but when they clicked, it would redirect them to the product page on Lazada where they could learn more information about the product of interest and subsequently make a purchase. 


The 4-Step Process:

  1. The Dynamic Ads are run by the brand and shown to potential customers.
  2. When a user clicks on an image in the Collaborative Ads, it will lead them to a page with a “Shop Now” button. 
  3. When the user clicks the “Shop Now” button, it will redirect them to the retailer’s website.
  4. The user can browse other products from the brand and make a purchase decision on that website. 

Note: In a case when the user doesn’t make a purchase but has added a product into their shopping cart, brands can launch retargeting ads showing the same ads to them repeatedly to encourage them to purchase, a technique many have nicknamed “haunting” ads. 

Collaborative Ads also allow both brands and retailers to track the performance of their advertisements using various KPIs including Reach, Impressions, Conversions, Clicks and Return on Ad Spend.

Benefits of Collaborative Ads

For Brands

  1. Measure performance more precisely
  2. Boost web traffic and increase sales on the website
  3. Real-time access to performance reports for all aspects of the campaign 
  4. Increase reach and visibility for the brand
  5. Save on website maintenance costs

For Retailers

  1. An ability to work with multiple brands safely
  2. An increase in sales and recognition
  3. Wider reach for the platform, as well as the brand’s Collaborative Ads

Facebook Collaborative Ads allow brands to be more confident with their advertisement performance with transparent and verifiable results. Prior to this, due to data protection restrictions of each platform, brands wouldn’t have access to information about conversion rates. Furthermore, as both brands and retailers have access to all the necessary information, they can collaboratively make better, more precise decisions based on this data.