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What Facebook’s New Video Ad Format Means For E-Commerce Sites

Facebook has introduced a new ad format created specifically for mobile devices to help e-commerce businesses to promote their products and drive retail sales.

E-commerce sites using the new format, called ‘Collection,’ can advertize their products using a video, followed by four recommended product images underneath. Users who tap on the ad are able to browse through a catalog of products, before being directed to the advertizer’s mobile website or app to make the purchase.

Facebook’s director of product marketing, Maz Sharafi said: “Collection is, at its core, a new ad experience that we’ve built specifically for news feed, to drive product discovery and sales through an engaging format in a fast-loading shopping experience.”

Using Facebook video ads to promote their products, retailers are able to showcase products in a TV-commercial-style ad, a marketing move that is likely to bring in more sales, since ‘three in four consumers say that watching videos on social media influences their purchasing decisions,’ according to Facebook.

Retailers already taking advantage of Facebook video ads include the likes of Adidas, Lowe’s, Tommy Hilfiger, Sport Chek and Michael Kors. Rebecca Watts, Adidas’ performance marketing senior specialist said:

“This new ad format has everything we need to introduce a new product and drive sales. Collection has outstanding cross-selling capabilities, and we’ll certainly explore this new format again to inspire and increase sales.”

Facebook is also in the process of testing a new metric called Outbound Clicks which will tell e-commerce retailers how many people clicked through to their website.

For more information about Collection, click here.

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