Marketers Warm to Meta’s Advantage+ Commerce Tool While Promotional Ads See Tepid Adoption

With signal loss increasing and marketers exploring transaction data as an alternative identity currency, platforms have been amping up their commerce-related tools for marketers.

At Meta, advertisers have been slow to adopt its promotional ad units, introduced last May to make it easier for shoppers to find deals and generate lower-funnel metrics for brands.

Its artificial intelligence-powered Advantage+ Shopping Campaigns tool, however, has been gaining more attention, despite broad concerns about AI-powered buying tools.

Direct-to-consumer agency DigiShopGirl Media has increased its media spend on Advantage+ by 40% year over year, with momentum gaining in the second half of 2023.

“We’ve now found that if we do a dedicated structure by types of product families, such as a shoe campaign versus a top campaign, the algorithm finds customers who are interested in each type of product,” said DigiShopGirl founder Katya Constantine.

Signal loss is spurring walled gardens to aggressively promote their ecommerce ventures in order to show that ads drive conversions. At the same time, advertisers are moving from an audience-focused targeting approach toward a sales- or conversion-focused targeting approach—which they can accomplish through Advantage+. Some buyers are still hesitant over Meta’s data handling, however.

The tool, introduced in August 2022, uses AI to automate the campaign creation process—Meta said it can automate up to 150 creative combinations at once—and finds Meta audiences by using machine learning so that buyers can learn quickly what works in their campaigns. Meta studies show that Advantage+ can lower cost-per-purchase conversion by 12%.

Advantage+ campaigns for brands at agency Collective Measures have outperformed standard shopping campaigns, keeping CPMs (cost per thousand impressions) lower while driving traffic to sites, said Ronald Grisha Bornsztein, associate director of performance media.  

On average, Advantage+ campaigns drove a 160% higher return on ad spend in 2023 than standard shopping campaigns on Meta, with the Advantage+ average CPM ranging between $5 and $5.50.