How to Take Advantage of Facebook Dynamic Ads

According to recent studies, 86% of Internet users are affected by banner blindness. Facebook’s dynamic product ads provide a more relevant and targeted alternative to traditional ads for your business.

Dynamic product ads allow you to target a more narrow set of interested audiences directly from your Facebook page.

In order to create an ad, you should first configure which products you'd like to show to your audience, and how much you're going to pay for each click on the ad (called bid).

From here, Facebook generates relevant images based on product selection to your audience, creating a dynamic ad.

In addition, there are some users who have visited your website but haven’t purchased anything.

With dynamic product ads, you can create personalized ads for every potential customer that visited your website, as well as improve content and services.

These ads can contain all the products the shopper had previously viewed on your website as well as other similar products they may have expressed interest in.

By reminding visitors of relevant products they were interested in, dynamic product ads increase the chance of visitors returning to your website to make a purchase.

Dynamic ads work great in showing offers, product reviews, or letting users know about delivery time or any benefit associated with purchasing from your business directly or from your business' website.

Why You Should Use Dynamic Product Ads

There are a number of reasons why all advertisers should consider using dynamic product ads. These ads are:

Highly personalized – Dynamic product ads show the most relevant products to users who have previously visited your website, which makes leads and sales more likely. Your audience network loves content they can familiarize with.

Focused on products – Dynamic product ads are focused on showcasing your products and as such tend to attract visitors from audiences with greater purchase intent.

Updated in real-time – Dynamic ads automatically get updated and don’t require the constant manual updating that is required by standard ads.

Optimized for cross-device targeting – Dynamic ads are optimized for both desktop and mobile devices and target customers across all devices. For instance, if a shopper visits your website on a mobile device and then accesses it again from their desktop computer at a later time, they will still see your ads.

Highly effective - Brands document astonishing results when using dynamic ads for their Facebook, Instagram or overall online advertising.

Just take a look at Wavemaker’s recent successful results. As a global agency focused on growth marketing and providing pioneering solutions for its clients, this Slovak giant surpassed all marketing expectations with highly personalized and attractive dynamic product ad designs, resulting in an up to 50%-decrease in CPA.


Then again, the Nordic countries’​ largest eCommerce player, Komplett, used dynamic product ads to target consumers with extremely relevant ads at all stages of the sales funnel. The results: ​​boosted conversions, 80% time saved when creating ads, and new audiences unlocked.Komplett

How To Set Up Dynamic Product Ads

What are the benefits of dynamic product ads? Well, there are a few, but the biggest benefit is simplicity. However, it is very important to set them up correctly.

We are going to guide you through the four steps you need to go through to start using dynamic ads on Facebook or Instagram.

1. Install Facebook Pixel and Add Events

The first thing you need to do is create and install the Facebook Pixel on your website. To create a Facebook Pixel, go to Ads Manager > Pixels > Create Pixel.


You will get a snippet of code that you will need to add to the header section of your website’s code.

After adding the code to your website, you must check if the Pixel is working by clicking on Send traffic.

If the status says "Active", you can move on to adding event codes.


For dynamic product ads, the events that you will want to add include View Content, Add to Cart, and Purchase. You will need to add their event codes to your website as well.

To check if the event codes are installed correctly, you can use the Chrome extension Facebook Pixel Helper.

2.Create a Product Feed

A product feed contains all the information about your products (e.g. product description, price, number of products in stock, etc.).

It is used to provide Facebook with all the information it needs to create dynamic ads for your website.

The process of creating a product feed can differ based on which platform your website was created on.

Ecommerce platforms such as Shopify and WooCommerce have apps and plugins which make this process quick and easy.

You can also opt for creating a feed manually by adding all the information about your products to a CSV file and then uploading the file to Facebook Business Manager.

The downside of using this method is that products don’t get automatically updated every time a change occurs (e.g. product price increases or decreases).

After your product feed is completed, it will be available at an automatically determined location on your website (e.g.

3. Set up your Facebook Catalog

The next step is to create a Facebook Catalog, which will contain all the information about your products.

The information will be used when advertising your products with dynamic ads.

To create the Catalog, go to Facebook Business Manager > Assets > Catalogs and then choose the type of Catalog most relevant for your business.


Next, choose a name for your Catalog and click on Create.

The next step is to connect the product feed (which you’ve created earlier) to the Catalog by going to View Catalog > Data sources > Add data source > Set a schedule and then paste the URL of your product feed in the Add a data feed URL section.

Finally, choose an update schedule for your feed, the feed name, and the currency you use and click Upload.

After your product feed is uploaded, you will need to connect an event source by clicking the Connect event source button and choosing the correct Facebook Pixel.

This means you are finally ready to create your ad campaign.

4. Create Your Dynamic Product Ads Campaign

To create a dynamic product ads campaign, go to Ads Manager > Create > Select quick creation.

Type in your campaign name, choose Auction as the Buying Type and Catalog sales as the campaign objective.

Finally, type in a name for your ad set and click Save draft.

Change Budget Optimization

To set your campaign budget, turn on Budget optimization and set a campaign budget that you can afford.

Set Up Your Ad Set

Set up your ad set by going to Ads manager > Ad sets, checking the checkbox next to the ad set’s name and clicking on the pencil icon.


Here, you will need to choose the products that you want to promote, set the budget, and choose a schedule and audience.

If this is your first time creating dynamic ads, select Automatic Placements in the Placements section.

Create Ad

Go to Ads Manager > Ads tab > Ad checkbox > Pencil icon. Here you will select your Facebook page and ad creative and add any customizations.



After you have customized the ad to your liking, click Publish.

Congratulations, you have created your first dynamic product ad!

How to Optimize Dynamic Product Ads

There are a number of things that you can do to optimize your dynamic product ads.

Here are some tips to help you get the best results on Facebook or Instagram when using dynamic ads:

Use Separate Ad Sets for Viewed and Added to Cart Audiences

Since the default audience for dynamic product ads is Viewed or Added to Cart, most people leave it at that without much thought.

In most cases, you are better off using the Custom Combination option.
separate ad sets for facebook dynamic ads

While Viewed audiences might be interested in your products, people who have actually added products to their cart have shown much stronger purchasing intent and should be served different ad copy.

Users who did not add a product to their cart might need more information (such as reviews) to convince them to add the product to their cart and, ultimately, make a purchase.

On the other hand, shoppers who’ve added a product to their cart but haven’t completed checkout might respond well to being offered a discount code.

Control Ad Frequency

Many advertisers keep the same ads running for too long because they are profitable.

However, this often leads to the audience getting annoyed with the dynamic ads, resulting in lower click-through rates, and higher cost-per-click.

Running dynamic ads that are annoying your audience can seriously harm your brand image.

To prevent this, monitor your ad frequency and optimize once it gets too high.

A good rule of thumb is to keep your overall ad frequency around 1.

Keep an Eye On Bidding

Different goals require different bidding strategies.

For example, if you are bidding for purchases and using a one-day click window, your ad frequency will be very high.

In this situation, you should opt for using a bigger time window to reduce frequency.

Change the Time Window

A time window that is too small can be the reason for high ad frequencies.

You will need to experiment with a bigger time window (7, 14, or 21 days) until you manage to lower the frequency to an acceptable amount.

Retarget Customers for a Maximum of 30 Days

The impulse to purchase a product is the strongest at the beginning when a user first discovers the product.

If more than 30 days have passed since the user viewed the product and they still haven’t purchased it, then they are most likely no longer interested in it.

In most cases, continuing to remarket to such users, especially on Facebook, is a waste of ad budget.

Change Ad Copy

Even though dynamic product ads are by nature very visual, you still need to consider your ad copy and optimize it for the best results.

Facebook recommends considering the following tips when creating your ad copy:

  • Tie your text to your visual – Your ad copy and image should complement each other.
  • Create different ads for different people – Use separate ads to optimize your message for each audience network.
  • Speak to your audience – Write your ad copy as if you’re directly speaking to a member of your target audience.
  • Be recognizable – Make sure to match your tone across all channels so your audience can readily recognize your message.
  • Keep it short and sweet – Decide what message you want to deliver and try to deliver it as succinctly as possible.
  • Use a single call-to-action – Don’t confuse shoppers with multiple CTAs in your ad copy but rather decide on a single one (e.g. Shop now!)
  • List the price – Mention the price of the product in your ad copy. No one likes bald ads.
  • Include a timeframe – Add a sense of urgency to your offer by using words such as “today” or now” in your ad copy.

Utilize Product Sets

If you have multiple product lines, consider creating product sets for each of your product lines.

You can use a product set to filter products by category or price and create dynamic ads to run special offers (e.g. discounts) on certain product categories.

You can also test different ad copies for each product set to see which product set performs better.

Test Different Placements

You don’t have to settle for using automatic placements all the time.

Test how your ads perform in the desktop news feed, the mobile newsfeed, and the right column, and see which placements are the most profitable for you.

Get Rid of Non-performers

If some of your products don’t seem to sell no matter what you do, remove them from your product feed completely so you can dedicate more of your ad budget to advertising products that perform well and sell to your audiences.

Facebook Dynamic Product Ad Strategies

Depending on your goals and the type of products you sell, there are a number of dynamic product ad strategies that you can use.

Here are a few to get your audience network straddled:

Use Personalized Product Recommendations

When remarketing to shoppers, show them not only the products they previously viewed but also any related products that you sell.

Related products can help shoppers find a suitable alternative in case the product they initially viewed wasn’t completely to their liking.

Leverage Abandoned Cart Content

Adding a product to a cart is a sign of strong purchase intent.

Use abandoned cart content in your ads to remind shoppers what they left behind.

Consider including a discount code in the ad copy to nudge indecisive customers towards making a purchase on your website.

Target Customers Post-purchase

To maximize customer lifetime value, try targeting recent customers with products that are relevant to their last purchase.

These can either be complementary products or similar products in a different price range.

Dynamic ads and how to survive Apple’s iOS14 privacy update

Amidst the pandemic, Apple unveiled plans to release the Identifier For Advertisers (IDFA), the company’s latest mobile operating system update, iOS 14. And for Facebook advertisers, it was considered quite a huge deal, especially with all motion being mainly online.

In the middle of spring, the new release slowly started crawling up on user’s devices. And now, there are still those who are bracing themselves for the iOS 14 Facebook tracking update.

4 Smart Steps to Brace for the iOS 14.5 Impact: 

For creating a better strategy for your campaigns, we encourage you to focus on these 4 initial steps, since you’ll have limited access to user data:

  • Personalize with Owned Brand Data   
  • Prioritize Specific Conversion Events
  • Unlock More Data with UTM 
  • Optimize Goals on Google Analytics 

Even though the update has already hit a lot of people, it may be quite some time until we see how much it’s going to affect businesses.

Facebook dynamic ads examples

As you can see, it's never too late to find the perfect workflow for your next project.

Bet you never thought that social ads could be so captivating.

Take a look at these stunning examples of dynamic creative ads that are sure to send a spark through any marketing or paid social strategy or campaign.

Take notes on how to create dynamic ads that can help personalize and improve your ad campaign on Facebook or Instagram.

DPA - Customer and product journeys

Retargeting is an important tool for performance marketers, and it's crucial to have a smart strategy. Dynamic product ads for retargeting are more powerful than static advertising because they're able to adapt their marketing messages based on the user's history.

By customizing interest paths that allow users from engagement all the way up through conversion, these smart journeys can really increase brand loyalty while also building trust by providing personalized offers and relevant content at every stage of your customer journey.

Enhanced DPA with On-Brand creative

Use dynamic creative templates to align ads with your brand kit and narrative. With enhanced DPAs, you’ll be able to easily test different motivators in real-time.

This is an efficient way of delivering 1000s of image ad variations that have been created for all your products in a fraction of time.

So, using dynamic creative, you pay 500% less for creative production.

On-brand DPAs on Auto-Pilot


Keeping all product offers on-brand at scale presented serious creative production challenges.

The goal was to overcome the creative roadblock and deliver the right messages to the right customers fast and at scale.

How to Push Things Beyond the Limits of Paid Social

Facebook Dynamic Product Ads provide a more personalized way to reach your customers with advertising.

They are a great solution for automated segment retargeting.

Even though dynamic ads are automated, they still need to be carefully monitored.

Look out for ads with high frequency, high cost-per-click, or low relevance scores and make sure to stop them from bumping down on overall ROI.

The roll-up: Should you use dynamic ads for Facebook?

If the goal is eternal growth - absolutely yes!

In Hunch, we nurture quality and organic growth in the long run and empower you to bloom on paid social media like Facebook or Instagram.

With Hunch, you build amazing customer journeys on Facebook and Instagram, that personalize experiences and convert customers with the right creative at the right time.

As your technology partner, we bring together performance creatives and data so you can see how best to improve results on anything from sales volume or brand awareness.

We'll get deep into strategy with you while prioritizing metrics that are important for your company's success.

Together we build your personalized customer journeys. So, get started with a Free Strategy Call and learn how you can automate with Hunch.

Thanks for reading! Now go out there and start shaking things up with dynamic product ads!

And don’t be afraid to experiment. What works well for one business might not work well for another, before they do more harm.

Also, to really push things beyond the limits of paid social, the dynamic creative unlocks an abundance of ways to reach the right target audience with your ads on Facebook.


Frequently Asked Questions

1. How to set up dynamic ads Facebook?

Install the Facebook Pixel on your site to get started. To establish a connection between a webpage and the Facebook campaign, place pixel code on your site (or point recognized conversions back to it). Setup pixels by visiting, clicking 'setup' for Dynamic Ads, and then selecting "Start Installation" from the drop-down menu at the bottom of the page.

2. How to set up Facebook dynamic product ads?

  • Install Facebook Pixel and Add Events
  • Create a Product Feed
  • Set up your Facebook Catalog
  • Create Your Dynamic Product Ads Campaign