Designing Dynamic Product Ads on Facebook: Complete Guide

Facebook is so gargantuan it surpasses multiple countries when it comes to population - assuming “user” is comparable to “citizen”. According to data quoted by Variety, there were 3.98 billion monthly users of all Meta services, including Facebook, Instagram, and Threads (a direct competition to TikTok/Twitter).
 

It is not surprising that access to this data, with all users' preferences and the time they spent using these platforms, gives Meta a great way to sell their ad products. One of the newer products in the company’s offer is Meta Dynamic Product Ad.
 

What Are Dynamic Product Ads on Facebook?

Meta dynamic product ads are a tool that supports sellers and online stores in convincing users who didn’t complete their purchase to come back to their abandoned cart and finish the process. The ads are one of the most sophisticated yet simple-to-use online marketing tools available.

Dynamic product ads provided by Meta are basically automated systems that enrich the content and improve the targeting in real-time when working on ads. By that, the ad product reduces the amount of work necessary to launch an effective campaign and achieve desired results.
 

Designing Facebook Dynamic Product Ads

The ads are basically premade templates the shop owner can use to be displayed to Meta products user. If the templates are used, there is no need to come up with dozens (if not hundreds) of creations and go for dynamic automation instead.

Yet apart from their flexible nature, there are multiple other processes running in the background.

• Tracking user activity - the actions of a customer-to-be are monitored and tracked by the Meta pixel embedded in the company’s website.

• Personalization - the data harvested by the system is used to create a tailored ad. The image depicts the product that was in the cart, and the copy is derived from the product description.

• Delivery - the ads are displayed among a whole Meta network, which includes Facebook, Instagram, and Threads. The ads will not only show the unpurchased product but also come up with suggestions of complementary items to increase the cart value.

• Targeting - last but not least, Meta owns a gargantuan database with users’ data, so spotting a perfect time and context to serve a particular ad is way easier for the company. This is yet another factor that contributes to the higher conversion rates and greater ROI of the dynamic ads.

   

Dynamic vs. Non-dynamic

From the more technocratic and ground-level perspective, there are several feats of dynamic ads that distinguish them from static ones.

In Dynamic Ads, Meta receives a set of images, descriptions, and texts to use at will, mixing them in various configurations. In non-dynamic ads, the system is fed with an Ad+text set and gains no permission to tinker with it. Basically, all is done manually and, for better or worse, all the effect is attributed to the ad specialist.

Dynamic Creative Optimization

The key aspect of Dynamic Creative Optimization is in showing different ads to different people, mixing the content for the sake of delivering the best composition to the individual that may produce the best chance of conversion. The ads are mixed from the elements the company delivers, be that an image, copy, or any other element provided.

Also, the tool is actively applying minor and major adjustments to the assets the user provides:

• Slight improvements - the tool can automatically improve light levels or shading in the image.

• Cropping - if the image is cropped in an unfitting way, the tool may adjust that automatically.

• Changing the video speed - if it is beneficial for sales, the tool may decide to make the video faster or slower. This applies only to videos with no sound.

• Automatically creating videos from images.

• Adding songs to images or short videos - the songs and music are picked automatically, based on the mood detected in the images.

• Background extension - if the image doesn’t fit the frame due to the improper format, the tool can automatically extend the background to make it fit better.

Advantage+ ads

Apart from mixing the elements, the ads may be automatically optimized with the goal of app install sales. This approach focuses on minimizing the work the company employees need to do in order to see effects of the campaign.

The ads can be enriched with additional markings that may encourage the users further. These include (but are not limited to) free shipping or special promotion. The ad format may also include external data to mark bestsellers or products that are nearly out of stock.

On the other hand, though, the company has less control over the effects, making the system comparable to a black box that works, but none of the company employees exactly know why.

Benefits of Dynamic Product Ads

Dynamic product ads are a part of a new wave of automated ads companies can leverage for their benefit on multiple platforms, including Google, Amazon, and, of course, Meta. This type of ad comes with multiple advantages.

Better Conversions

The ad is super-targeted, leveraging also the dynamic aspect of ad creation, giving the user a perfect mix of narrow audience segments and tailored information. This results in way higher conversion rates and, consequently, higher ROI. According to Hubspot-gathered data, a personalized landing page can make ad campaigns up to 5% more effective. Consequently, better ads follow the same logic.

Recovering Lost Sales

A typical use case for a dynamic product ad is to recover abandoned carts. The system can harvest the information about the users who decided not to buy and encourage them to return and finish transactions throughout the whole Meta ecosystem.

According to data published by Tidio, up to 70% of all carts in e-commerce are abandoned, and recovering even a fraction of them can be a huge revenue booster.

Cross-selling

Apart from closing abandoned sales, dynamic product ads are perfect for cross-selling. Having the information about the items the user has bought (for example, running shoes), the shop can now offer complementary products (for example, a fitting shirt, or an electronic sport band).

Cross-selling is not only profitable for companies - it is also a user experience-improving device. According to the data gathered by Zipdo, up to 60% of all customers prefer bundle deals over picking single items.

Efficient Ad Creation

Last but not least - dynamic product ads are about quantity. The company may get a much better effect with far fewer resources used. And with more ad types and combinations, more A/B testing can be done, further improving ad effectiveness.

Dynamic Product Ads Best Practices

Dynamic product ads are a powerful tool to boost sales and reduce the costs of basically every e-commerce. On the other hand, it may be challenging to spot the perfect place for them in the marketing mix of the company.

• Start with retargeting - the ads are perfectly targeted, leveraging all the gargantuan amount of data Meta has about its users. With the time spent in Meta’s services and access to ad-creation abilities, retargeting is the perfect point where the Dynamic Ads can be used.

• Select correct conversion events - dynamic ads are a powerful tool to boost conversions and increase the user flow. The key is to select the conversion event with the highest ROI - otherwise, the dynamic ad can be a money-burner that triggers the desired event, yet the desired event is not what the company earns on.

• Invest in creations - dynamic product ads are a great way to boost income and conversions. The product also bears a promise that there will be multiple ad creations “for free”. It is only a part of the truth - the system mixes and tinkers with the content it got from the company and is basically unable to jump over the threshold set by the starting material.

• Strategically exclude audiences - the e-commerce company benefits from accurate data about the actual buyers and audience. For example, if the company’s customers consist of iPhone users in 80%, excluding Android users from ads may be a good move - yet one the automated systems may not figure out quickly.

• Enable ad placements - as a rule of thumb, enabling as many placements as possible is beneficial for the company. So going unrestricted regarding placement is a good idea unless data proves it wrong.

Dynamic Product Ads on Facebook as a Part of Social Media Campaign

Dynamic Product Ads on Facebook are a powerful asset for any social media campaign, enabling e-commerce businesses to create personalized and highly-targeted ads based on product feeds. These ads pull real-time data from a product catalog, displaying relevant items directly to users who have shown interest in the store's offerings but may not have completed their purchase. By integrating facebook dynamic product ads into a broader social media strategy, businesses can tap into the vast user base of Facebook, Instagram, and other Meta platforms, ensuring their ads are always shown to the most relevant audience.

One of the key advantages of using these ads in social media campaigns is how effortlessly they pull data from a product feed. Whether your feed is set up through Meta’s Commerce Manager or linked directly from your website, the process of populating ads with up-to-date product listings is automatic. This means your business can optimize the inventory shown in ads based on product availability or stock levels, ensuring users are always seeing what's ready for purchase. Additionally, by using Facebook's retargeting capabilities, you can retarget users who have interacted with your products but didn’t complete the checkout process, maximizing the chances of recovering abandoned sales.

Integrating facebook dynamic product ads within your campaign strategy also simplifies A/B testing, allowing you to compare different ad formats, optimize for mobile app usage, or analyze which product feeds perform best across various audience segments. By automating the product import and ad creation processes, you can focus on developing creative and effective ways to sell products and grow your brand's presence across Meta’s powerful ad ecosystem.