How to optimize TikTok Dynamic Showcase Ads for retargeting

If you’re not good at making videos and want to showcase a new collection with several products, then try advertising with Dynamic Showcase Ads for a change! This ad type allows you to create advertising videos for thousands of products with eye-catching images to attract and initiate shopping needs for viewers. Let’s find out why you should use Dynamic Showcase Ads on TikTok and how to set it up effectively in the article below!

What are TikTok Dynamic Showcase Ads?

Dynamic Showcase Ads (DSAs) on TikTok are customized video ads. They are produced in real-time using an advertisement template. DSAs will synchronize and update information from the product catalogs, such as images, features, prices, quantities, etc., helping users save time setting up ads.

The TikTok dynamic product ad is a solution belonging to TikTok’s full-service eCommerce. It consists of various ad types and capabilities to give businesses the “opportunity to capture the full power of TikTok’s influence on purchase decisions.” By showcasing multiple products within a single ad, businesses can increase the chances of users finding something they’re interested in and clicking through to the website to make a purchase.

TikTok Dynamic Showcase Ads also feature a customizable layout, allowing businesses to choose how many products to display, the order in which they appear, and the images and text used to describe each product. This level of customization enables businesses to tailor their ads to the preferences and interests of their target audience.

>>> Read More: 11 TikTok Ad Types you need to know to reach more prospects

However, DSAs is a whitelisting feature belonging to the TikTok Agency account. Therefore, if advertisers want to use Dynamic Showcase, contact Mega Digital for a full guide and further use!

Why should you use DSAs?

Running this advertising type has three key advantages:

• Promote a wide range of products: Dynamic Showcase Ads has unique features to automatically fill the designed template with product information from the Catalog. This advertising solution helps businesses save time and the cost of creating every item manually.
• Retarget and create conversions: Using DSAs, advertisers can retarget the viewers who have interacted or shown interest in the advertising content but have not yet paid. This way will remind the users to complete the purchase process.
• Optimize ad delivery ability: Dynamic showcase ads automatically personalize content based on user behavior from tracking website data. The algorithm will distribute ads and display products to users who need them, encouraging them to complete the purchase process.

The impact of TikTok Dynamic Showcase ads has been proven with its effectiveness on how TikTok users purchase products. According to TikTok Marketing Science Global Shopping Ad Products Study 2022, we have:

• 60% of weekly TikTok users believe Dynamic Showcase Ads have unique shopping features.
• After viewing a Dynamic Showcase Ad on TikTok, 74% of Gen Z weekly TikTok users would seek more information on the advertised product, while 59% of Gen X weekly TikTok users would seek product/brand reviews.
• People spend 1.4x as long viewing and 4.4x more likely to like, share, comment, or bookmark via Dynamic Showcase on TikTok (vs. comparable ads on other platforms).

Dynamic Showcase Ads Specs

To set up a Dynamic Showcase ad, you need to upload a video template that adheres to the following characteristics:

• Resolution: 720px x 1280px, 640px x 640px, or 1280px x 720px.
• File formats: MP4, MPEG, MOV, and AVI.
• Duration: from 5 to 16 seconds
• File size: ≤ 500 MB.

How to set up Dynamic Showcase Ads?

1. On TikTok Ads Manager, create a product catalog by clicking Assets -> Catalog -> Create.
2. Link the Product Feed with the Product Catalog.
3. Upload the video templates for your Catalog.
4. Integrate user tracking tools on the website, such as TikTok Pixel.
5. Select your target audiences and start the campaign.

Tips for creating effective TikTok Dynamic Showcase Ads

Now that you know how TikTok Dynamic Showcase Ads work, let’s dive into some tips for creating effective ads that will drive product discovery and sales on the platform.

• Create visually appealing and engaging content: TikTok is all about creativity and entertainment, so it’s important to make sure your ads are visually appealing and engaging. Use high-quality images and videos that showcase your products in the best light possible. Consider adding some fun and unique elements to your ads, like music or special effects, to make them stand out.
• Use attention-grabbing headlines and clear product descriptions: Your ad headlines and product descriptions should be clear, concise, and attention-grabbing. Use language that speaks directly to your target audience and highlights the benefits of your products. Make sure your product descriptions are informative and detailed enough to help users make an informed purchasing decision.
• Focus on Product Appeal: Showcase products that resonate with your target audience. Highlight their unique features that align with TikTok users’ preferences. Clearly communicate the benefits and solutions your product offers. Address pain points and emphasize how your product can improve users’ lives.
• Tell a Story: Use a narrative approach to connect with viewers emotionally. Storytelling enhances engagement and encourages users to explore further.

How to retarget customers with TikTok Dynamic Showcase Ads?

Ensure you have the TikTok Pixel installed on your website. This will allow you to track user behavior and collect data on the specific products they’ve viewed. Dynamic Ads Pixel is essential for personalizing your Dynamic Showcase Ads. Then, follow these steps to retarget your desired customers:

1. Choose Your Audience:

• Opt for “Retarget Audience” to display specific product advertisements to individuals who have previously shown interest in your products on your website or app.
• For a “Retarget Audience,” specify the events you want to include or exclude from your audience and the time frame during which these events occurred.
• You also have the option to include or exclude a custom audience within your “Retarget Audience.”

2. Find Prospective Customers:

• Select “Find Prospective Customers” to showcase your product ads to potential new customers.
• When using a “Find Prospective Customers” audience, you can customize it by choosing which Custom Audiences to include or exclude.
• If you’re selling products through a mobile app, we recommend creating a Custom Audience from users who have installed your app and excluding them from your “Find Prospective Customers” Audience.

These audience selection options allow you to precisely tailor your ad campaigns to re-engage previous visitors or reach out to fresh potential customers, enhancing the effectiveness of your TikTok advertising efforts. A/B testing is key to optimizing your Dynamic Showcase Ads. Experiment with different ad formats, product sets, and audience segments to determine what works best, and ontinuously analyze the results and adjust your strategy accordingly.

Aerie – example of Dynamic Showcase Ads’ success

Aerie, a well-known clothing company, chose to use DSAs and saw a 3.5X increase in ROAS with this campaign type. The hip and cozy clothing company started the #AerieReal hashtag and used it to engage its fans and motivate them to accept their true selves. After that, they used Dynamic Showcase Ads to market their extensive product selection and increase conversions through targeted advertising.

Without having to produce ads manually, Aerie could promote all of its items on TikTok with dynamic ads. Additionally, because of the bespoke nature of these offers, they increased conversions, resulting in a 78% higher cost per purchase than intended.

Are DSAs effective?

TikTok users prefer personalized advertisements over generic ones. As a result, adopting Dynamic Showcase Ads will lead to enhanced ROAS through improved CTR and engagement.

You may create a brand with personality and exhibit your extensive product catalog in a seamless, native manner with the aid of DSAs. This solution allows potential customers to browse relevant products without feeling pressured to view an advertisement.

In general, DSA not only assists in the distribution of millions of products to buyers, but it also advertises and encourages TikTok users to make purchases. Start a Dynamic Showcase ads campaign by registering a TikTok agency account today! And check out our ebook on how to elevate business sales during the holiday season right here!