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Top 4 Reasons Why Facebook Collaborative Ads is Money Making Ads!

Are you listing your products in third-party marketplace such as Lazada, Shopee, Zalora and etc? Although these eCommerce marketplaces have very high numbers of users and traffic, it is still required for you to do ads to send traffic to your store to get more exposure to acquire more sales.

However, merchants will always encounter one main issue when sending traffic to this marketplace thru Facebook Ads. LIMITED DATA INSIGHTS!


Merchants are unable to know the journey of the customer after they clicked on the ads.

This is mainly because the marketplace is not a website that is customizable to add in specific coding to track the conversions that happened. Thus, marketers are not able to judge the effectiveness of the Facebook Ads and make further optimizations accordingly.

Without such insights, most marketers are only able to send traffic to their shops on marketplace blindly and unable to truly optimize the advertising campaigns to focus on getting sales and increasing the Return on Ad Spent (ROAS). 

Optimizing advertising campaigns for third party platforms has been one of the most difficult challenges for marketers and online merchants. Thankfully, Facebook has provided a solution to this issue by releasing the
Facebook Collaborative Ads in 2019 March. 

What is Facebook Collaborative Ads?

Facebook collaborative ads are a new type of ads campaign that collaborates with the third party marketplace platforms through data sharing integrations with Facebook. This makes it easier with higher accuracy for brands to run performance marketing campaigns on the retailer’s website or mobile app.

How does it happen?

Through internal collaboration, retailers who already set up the dynamic ads will be able to create a segment of their catalogue consisting of the particular brand’s products to the brand’s ad account. Brands will then be able to use this catalogue segment and data information shared across to run dynamic ads that show the RIGHT products to RIGHT people based on past interest & behaviors shown on the retailer’s site, app or elsewhere on the Internet.

Now you know how Facebook Collaborative Ads works…
Here are the Next 4 Things You Need to Know about Facebook Collaborative Ads.

1) Dynamic Retargeting Ads

Yes, you see it right. Dynamic Retargeting. With Facebook Collaborative Ads, it is possible for merchants & brands to do dynamic retargeting that is precise until the extent that the audience will only be shown products that match with their online behaviors on social media, websites and apps only.

This made the remarketing campaign very effective when converting these precise target audiences into actual sales which can bring high ROAS (Return on Ad Spent).

The features of Dynamic Retargeting can be used to retarget different groups of audiences.

Types of Audiences that can be retargeted (Up to 180 Days within the cycle):


1. Viewed Product Audiences

2. Add to Cart Audiences

3. Initiated Checkout Audiences

4. Purchased Audiences


Moreover, all of the above audiences can be categorized based on specific products/product categories that they took actions. This then allows further potential to cross-sell and upsell products to the existing customer pool based on the products they purchased.

A good example would, Audience A that purchased Vacuum Cleaner can be retargeted with other categories of electrical appliances or spare parts that are for the Vacuum Cleaner. 


2) Performance Tracking on Retailer Platforms


With Facebook Collaborative Ads, the data statistics on the retailers’ platform will be more transparent and able to view deeper data insights for the campaign’.

For instance,

Without Facebook Collaborative Ads, you won’t be able to track the sales revenue on the retailer site that is brought in from your Ads Campaign. Thus, unable to find out the effectiveness of the campaign and decide whether it is profitable and worth to continue to spend the money to bring traffic. 


With Facebook Collaborative Ads, you will be able to view the whole journey of your customers that is brought in through Facebook Collaborative Ads. It is possible to know how many Add to Carts, Checkouts Initiated and Purchases that are sourced from your campaign traffic. 


3) Profitability


Of course one of the top reasons why Facebook Collaborative Ads, PROFITABILITY. Yes, with the right strategies, Facebook Collaborative Ads can be highly profitable as it can bring the most results at the lowest cost thru precise remarketing methods and different ad formats.


Facebook Collaborative Ads also helps brands & merchants to save cost instead of building their own website and platform.


With integration of Facebook Collaborative Ads, it makes it possible for small businesses and brands able to run competitive Facebook Ads such as Collection Ads & Dynamic Ads without having their own website and product catalog.


4) Campaign Scalability


The fourth reason would be the scalability of the Facebook Collaborative Ads. When the campaign performances are all trackable with the high transparency of data insights such as sales and ROAS data. This makes the scaling process for the Facebook Collaborative Ads easier and faster than the usual campaigns.

Success Story A:
One of our clients that adopted Facebook Collaborative Ads has seen results in the first month. Subsequently, after a few months of optimization the ROAS has increased further from 3.0 to 8.0 thru optimization & scaling strategies.

With a ROAS of 8.0, they are generating 5 figures monthly sales revenue with a minimal monthly budget. However, ROAS of 8.0 is definitely not an easy task to achieve. Generally, a successful campaign will at least remain at ROAS of 2.5 ~ 3.0 above.

What is ROAS:
*ROAS: Return on Ad Spent, meaning based on the amount spent how much you are getting back in sales number. For instance, a ROAS of 3.0 would mean that by spending RM 1,000 you are getting sales revenue that is worth RM 3,000. 

In conclusion, these are the
Top 4 Reasons Why You Should Run Facebook Collaborative Ads especially if you are listing your products on a third-party retailer website/marketplace. We started running a Facebook Collaborative Ads Campaign in 2019 for our clients.

The results have been very positive and shown promising results to scale and optimize further.  However, it’s
NOT Easy to set up a Facebook Collaborative Ads with a lot of connections & documentations that need to be prepared.

Hence, Cloud Media is providing Facebook & Instagram Ads Management Service for eCommerce businesses who are interested to kick-start their first Facebook Collaborative Ads Campaign with their eCommerce Marketplaces. 

Contact Us to Learn More!

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