Snap announced this week a new kind of advertising product, Dynamic Ads, that will help it to better attract ad dollars from retail, e-commerce, and other direct-to-consumer brands — a group that today thrives on Instagram. With Dynamic Ads, advertisers can now automatically create ads in real-time based on extensive product catalogs that may contain hundreds of thousands of products. These ads are then served to Snapchat users based on their interests using a variety of templates provided by Snap.
These templates have been designed for mobile, Snap says, and will help the advertiser save time as they won’t have to manually create their ads. Instead, they just sync their product catalog and allow Snap’s system to build the ad in real-time. As product availability or prices change, the ads will also adjust.
The move to better serve advertisers in the retail and direct-to-consumer (DTC) space comes at a time when many DTC brands have been increasingly turning to Snapchat as Instagram has grown too crowded. Advertisers have complained about saturation and higher ad prices there. Snap, meanwhile, targeted this category of advertisers with a growing number of tools. The result, according to some DTC brands were ads that were 8 times cheaper than Instagram.