The Complete Guide to Facebook Dynamic Ads

10 Nov 2020 | vividreal
The Complete Guide to Facebook Dynamic Ads

Consumers these days are so immune to ads that there arose a need for marketers to hit them with a striking offer to make an impact. The need for more relevant and targeted ads brought in the Facebook Dynamic Ads. It is an “ideal” kind of ad for advertisers since it allows them to send personalized ads that are relevant to each prospect/customer. Dynamic Ads look similar to other ads that appear on Facebook, Instagram, Messenger, and the Audience Network. This allows you to create a template that automatically uses images and details from your data feed for things you’d like to advertise. It uses the help of Facebook pixel or SDK to show ads to people. The audience is traced and targeted by picking the ones who have already shown interest in your business by taking actions you care about on your site. 

In this article, we’ll be discussing the benefits of Dynamic ads, how it works, and the steps to create an amazing one for yourself. And if this gets too complicated, and if you need some help, we’ve got a team of Facebook Ads Experts to support you. Okay, enough of that, read on.

Benefits of Using Dynamic Ads

Personalized Ad Content: Dynamic product ads only display specific & relevant products and promotions to website users who visited your website. This approach makes it appear like a personalized ad for each individual who views it. This improves the scope for prospects to convert into customers.

Exclude, Up-Sell, Cross-Sell if Needed: The dynamic ads can be targeted by excluding the people who have already purchased from you. This will help you save money considerably on the ad spent. The next thing you can do is to up-sell & cross-sell the products you offer. This will increase your brand value and sales in the long run.  

Cross-Device Targeting: Dynamic ad isn’t limited by the device used. It will keep showing ads on the mobile phone even if the prospect interacted or showed some form of interest through a desktop device earlier. 

Drive Targeted Social Traffic: It ensures that the user traffic is oriented towards purchases rather than simply browsing.

How to Get Started with Dynamic Ads?

Facebook Pixel, Facebook SDK: The Facebook pixel code, when placed/ installed on your website, will track, measure, optimize, and build audiences for your Facebook Ad campaigns. And the SDK will work on your mobile app ads. Start with installing Facebook pixel on your website. Go to “Ads Manager” and click on “Pixels”, later hit the “Create a Pixel” button. Following this step, you’ll get to see a code that needs to be placed on the header section of your website. To check if your pixel is working or not, click on send traffic. And it will display the status as “Active” if it works.

Add Events: Next, you need to add events. Events can be any common action that users tend to take on your website such as viewing a product, filling a sign-up form, or making a purchase.  Choose the event that you want to optimize for (View Content, Add To Cart, Add To Wishlist, or Purchase) and set the conversion window to one that suits your needs. Setting up the events helps pixel capture the most important events that you want to track for your business. 

Create a Product Catalogue: To get started with Dynamic ads, the advertisers need to create a product feed that lists all their products in a file following a specific format ( describing its pricing, availability, and descriptions). This product feed file is used for feeding the product and its details to the product catalog. You can use a .csv, .tsv, or .xml file or a third-party feed provider to create a data feed based on your eCommerce platform.

For creating a product catalog, visit the “Ads Manager” and select “Catalog” under “Assets”. Under the  Catalogue Manager, choose the category that best describes your business. 

Decide on how you plan to upload the data, i.e, if your product information is going to be uploaded using a form, data feed, or Facebook pixel or by connecting to the e-commerce platform to import your products automatically. You can go for manual uploads only if you operate a smaller business. Large scale businesses can save a lot of time and effort with automatic imports from the e-commerce platform. 

Upload your product feed and name your product catalog by clicking the “Create” button. After this step, you’ve successfully set up your Facebook Dynamic Product. Now, it’s time to set up the  Facebook Dynamic Product Ad.

Set Up the Campaign: While setting up the Dynamic ads campaign, choose the  “Catalogue sales” as the campaign’s objective. Under the ad set, you need to create a product set. The product set is a subset of your product catalog, carrying the list of products that will be displayed through the campaign. 

After creating the product set, the audience needs to be set. It is advised to start with a broad audience so that Facebook can have campaigns and user feedback data. Doing so will help Facebook decide the people who see the products, and the product they see through the ad. You can go for the option “Show relevant products to prospective customers, even if they haven’t visited your website or app”. This will help you run a prospecting campaign where you can reach new people. And if you want to remarket to existing visitors, use the option “Retarget products to people who have visited your website or app”. 

If you choose to retarget, you’ll be provided with four different options. They are:

View or added to cart but not purchased: This option allows you to promote products to users who viewed a product or added products to the cart but not purchased within a specified time window (i.e. days, week, or month).

Added to cart but not purchase: This option can be used for promoting products to users who added products to their cart at a specified period.

Upsell products: The product can be promoted to people who viewed it from a particular set and then see it from another set at a specified period. 

Cross-sell products: This option can be used to show your past customers other complimentary products they can purchase.

If you choose to Show relevant products to prospective customers, then you’ll need to go deep into the buyer persona and further refine the audience.

Now it’s time to fill in the information regarding the budget and bidding. Although the budget depends on your products and goals, you can’t go below the minimum daily budget of $5.00. Set the optimization for ad delivery to “Link clicks” and hit the “Continue” button.

Choose the Facebook business page and Instagram account you want to use to run your campaign. Next, when you choose the ad format, consider the type of image you use in the product feed. Usually, landscape images go well with the single image ad format while vertical images will look better with the carousel ad format. 

To insert the ad copy, you can use the ‘+’ button inside each box to pull a catalog field from your product feed instead of manually entering the product name, description, or any other product information. Finally, confirm when you’re done.

How do Facebook Dynamic Ads Work?

Once the codes are set up, the pixel and SDK track your visitors. It helps Facebook gain insights from their actions on your website and mobile app. The information regarding the ones who visited your website, but didn’t make a purchase will be sent to Facebook. The Facebook pixel and the catalog work together to identify the people who viewed the product on your website. 

These people are added as an audience in the Dynamic ad campaign by Facebook, and the ad featuring the products they showed interest (both same & similar products) would be displayed to them once they log in to Facebook. The ad gives them an option to buy the product from the website by clicking on the ad itself. 

The next important feature of Dynamic ads is that you can target people based on their browsing history. These are people who may not have visited your website but would have viewed and purchased related products. Facebook does the same thing here too, they display them with similar products or services from the catalog you uploaded to the platform.

Apart from these, Facebook Dynamic ads also introduce your product to a wider set of people (who may not have even interacted with your website) by using broad audience targeting. 

Facebook Dynamic Ads Optimization

Segment Users Wisely 

Segment users who view your product page from users who add your product to the cart. There is a great amount of difference between the ones who simply view a product and the ones who add it to the cart. The ones who simply view the product may be window shopping or comparing prices and not exactly in a mood to buy it. Such users should be fed with ads that will help them know your brands more rather than forcing them through the sales funnel. While someone who adds the product to the cart has a better possibility of buying since they are ready or close to making a purchase. 

You can use Facebook’s custom combination to segment the audience so that you can show relevant ads to the different segments of the audience. With this feature, you can create a list of visitors who viewed your product but did not add it to the cart. Further, you can create relevant and targeted ad campaigns for them.

Customize the appearance of your Dynamic Ads

In a news feed that is filled with ads that look the same, it is difficult to grab your ad viewer’s attention. So, create and apply custom templates to make your ad stand out and get instantly noticed. 

Test your Ad Copy & Keep Your Ads Fresh

Every element in the ad copy needs to be attractive and click-worthy.  This will help you keep the CTR and conversion rates high. The ad copy must be written to promote the product benefits and match the product image & product page. 

If you’re placing a CTA button, try using a message that invokes a sense of urgency in the ad viewer’s mind. You can use action words and your creativity here, but make sure that it is kept concise without losing its focus on the particular stage of your sales funnel.   

Use Eye-Catchy Images

Mostly, people may not have the time and patience to stop by and read the ad copy right away. But, if the ad creative used is good enough to catch the ad viewer’s attention, the ad copy will be read. Use images that are of good quality, sized correctly, and possibly placed on a white background. The ad viewer’s focus falls exactly on the product you’re marketing with such images. You can test with different images to get the best one that brings in the most conversions.


Facebook Dynamic ads are a great way to reach people, persuade them, and make business. Their personalized approach helps you hit the right target. It saves a lot of your time and effort.  Further, boost ROAS, increase KPIs, and decrease CPAs. All you need to do is to execute it properly and keep an eye on its frequency. 

Facebook Dynamic ads must be part of your marketing strategy checklist. If you haven’t done it yet, don’t waste your time and start today!

Did you feel lost somewhere? Don’t worry, we’ve got you covered. We’ve got an amazing Facebook advertising team to help you out.

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