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Snap can now create 'dynamic' ads automatically for brands in global rollout

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Snap has extended a type of automated advertising to companies around the globe, in a move that aims to make it easier for retailers and brands to sell products to relevant consumers via the Snapchat app.

Dynamic Product Ads (DPAs) will allow a business to effectively upload its catalog to Snap, before products are automatically put into a template and then shown to relevant app users. If a product's price or availability changes, the ads will automatically update in real time, meaning less admin for advertisers.

Wednesday marks the rollout of DPAs in international markets such as the U.K., Germany, the Middle East and Australia having already been launched in the U.S. in October. Both Google and Facebook offer brands dynamic ads already.

British apparel brand Topshop, as well as Adidas and online fashion retailer Farfetch have been part of beta testing for the new ad format on Snap, the company said in an emailed release.

Snap | Adidas

Adidas has accelerated its e-commerce business in light of the coronavirus pandemic, according to Rob Seidu, its senior director of media activation in Europe. Seidu said Adidas has increased its return on advertising spend during the test, which took place in the U.K., France and the Netherlands.

"The launch of DPAs allows us a route to reach our target Gen Z and Millennial audiences with relevant product creative throughout the consumer journey," he said in the release issued by Snap.

Adidas saw first-quarter profits fall more than 90% due to store closures amid national lockdowns, but saw e-commerce sales rise by 35% in April.

Snap grew ad revenue during the first quarter, appearing to rely on big-spending large advertisers. It reported revenue of $462 million, up more than 44% over the first quarter of 2019.

"The coronavirus has accelerated the need for businesses to look at their digital sales channels and encouraged them to be more innovative in how they do that," according to Ed Couchman, general manager of Snapchat U.K.

"We are seeing strong results from advertisers in multiple sectors from high street clothing stores to food delivery who have been testing the product," he added.