The Magic of Facebook Dynamic Product Ads ✨

Ad Creatives
Oct 20, 2021
Feb 28, 2024
13 mins
On this page
Facebook Dynamic Product Ads

Fed up with slow online sales? Dynamic Product Ads effortlessly target eCommerce shoppers, turning passive scrollers into customers. Click to get onboard.

A potential customer enters your eCommerce store and views a few products. Then, they even add a product or two to their cart. But, just before completing the purchase, the baby starts crying, and they have to abandon the items in the cart and leave your site.

Tough luck, right?

But, you don’t have to lose this potential customer! There’s a way you can remind them of the item they left in their abandoned cart and help them complete the desired purchase: Facebook Dynamic Product Ads (DPA).

This is a wonderful tool for both dynamic retargeting and acquisition, which you just can’t overlook. And in this article, I’m going to tell you all about it.

What are Facebook Dynamic Product Ads?

If you're not aware, Facebook Dynamic Product Ads (DPAs) have undergone a name change. They're now called Meta Advantage+ catalog ads.

Facebook Dynamic Ads
Image source: Chip Chip

This powerful tool lets you target people who visited your online store and viewed your products but haven’t completed the purchase. These potential customers, often referred to as warm audiences, are a valuable opportunity for conversion, and all it takes is a gentle nudge to encourage them to complete their purchase.

This is exactly what Meta Advantage+ catalog ads allow you to do. They are customized ad templates you can create and use for each of your products. This allows you to target your store visitors with the exact product they viewed, serving as a reminder to complete their purchase.

The beauty of these ads lies in their dynamic nature. Instead of creating tens or hundreds of individual product ads, you can create a single template and use DPAs to automatically show tailor-made ads to your target audience, containing specific products from your data feed. 

This dynamic and personalized approach makes these ads an efficient and effective tool for driving conversions.

This is how Facebook’s dynamic ads work:

  1. They track user activity: When a potential customer visits your online store and views a product, their actions are tracked using third-party cookies or pixels. It's worth noting that Google aims to eliminate third-party cookies by the end of this year (yikes!), so it’s probably a good idea to ensure that you have reliable first-party tracking in place.
  2. They create personalized ads: This system then uses the above data to create personalized that feature the exact product that the potential customer viewed on your site. 
  3. Potential customers will see these ads: These personalized ads are displayed to them when they use Facebook or other platforms within the Meta network. They will remind them of the products they viewed but didn’t purchase, along with other relevant products.
  4. This encourages conversion: By showing them the exact product they are interested in, these ads serve as a nudge, saying: “Hey! Remember this product that you liked? Don’t forget to snap it up!”

The benefits of dynamic product ads

Alright, now let's get into WHY you should be using Facebook’s Dynamic Product Ads:

  • Target high-intent audiences: Dynamic product ads allow you to target specific products to highly engaged audiences at the most opportune moments, resulting in remarkably high ROAS and increased clicks and conversions.
  • Recover lost sales: By reminding people of products they recently viewed, helping to recapture potential purchases that may have been almost forgotten.
  • Cross-selling: When showing potential customers products in which they have shown interest, we can also present other products that they may find interesting.
  • Efficient ad creation: Using just a single ad template, you can effortlessly generate numerous customized ads tailored to individuals who have engaged with your store across various Meta’s network of apps.
  • Proven effectiveness: Companies like Target and Shutterfly have experienced significant benefits from utilizing Dynamic Ads, with Target seeing a 20% increase in conversions and Shutterfly witnessing over a 20% increase in CTR.

Now that you know all the great benefits of Facebook’s Dynamic Product Ads, you’re probably eager to get going with your first Dynamic Ads campaign. 

But first things first, before you start:

1. Install the Facebook pixel on your website

You can find a step-by-step guide explaining how to do it right here. Then, you simply need to install it on your website, which can be done manually or using a plugin.

2. Create your Product Catalog

The Product Catalog creation process starts with your product feed. This is a list of all the products in your inventory, which need to be sent to Facebook.

There are two ways to provide Facebook with your product list - manually or using a plugin. You can either create a CSV/TSV/XML file containing all the necessary information and upload it to Facebook, or use a plugin that will automate the process for you, such as Flexify for Shopify users. If you choose to do it manually, follow Facebook’s specifications.

To create the Product Catalog, follow these steps:

  • In Facebook Business Manager, click on the ‘All tools’ hamburger menu on your bottom left. Then, navigate to ‘Commerce Manager.’
Meta Ads Manager - All tools button
Meta Ads Manager - Commerce button
  • Next, click on ‘Add catalog.’
Meta Commerce Manager - Add catalog
  • From there, select the right type for your business.
Meta Ads Manager - select catalog type
  • Now, you need to name your new catalog and select your upload method - manual or using your eCommerce platform. Plugins are available for Shopify, BigCommerce, Magento, OpenCart, and WooCommerce.
Facebook Commerce Manager - upload method - connect a partner platform
  • Click 'Create' and we can move on to setting up your product sets.

3. Segment the products into product sets

If you have a huge collection of products, and even if not, it may be very useful to divide your products into different sets.

This feature is mainly helpful when targeting broad audiences for acquisition. For example, you can create specific sets containing your top products for up- or cross-selling to increase your revenue. In addition, you can use different sets for various product lines or for special sales, such as Black Friday/Cyber Monday offers.

Let’s go step-by-step through the process of creating a product set:

  • Go to the Commerce Manager and select ‘Sets’ from the left-side menu.
Facebook Commerce Manager - create product sets
  • Then, click ‘Create set,’ and select whether you want to use filters or manually select items.
Meta Commerce manager - create set
  • Next, name your new product set. You can segment your products based on category, type, brand, price, and more.
Meta Commerce manager - Set name
  • Click 'Create' and let’s get down to business and create your first Dynamic Ad campaign.

How can I create dynamic product ads on Facebook?

  1. Go to the Meta Ads Manager and in the Campaign tab, click the green 'Create' button.
Meta Ads Manager - create an ad
  1. Select ‘Sales’ as your campaign objective. Give your campaign an indicative name and click ‘Continue.’
Meta six new objectives
  1. The next step will be choosing your target audience. You can either use an existing audience or create a new one. You need to decide whether to retarget your store visitors or launch a broad prospecting audience.
Meta Commerce Manager - select target audience
  1. Afterward, you’re going to select your conversion optimization event and set up your desired budget and bid strategy.
  1. Then, you can select between Single Image or video, Carousel, and Collection formats. Carousel Ads are more commonly used for Dynamic Ads, but if you’re using landscape images, a Single Image format is worth considering. In a Carousel format, you can add an attractive video as the opening card and a CTA with your company’s profile on the last card. Collection Ads appear only on mobile and provide the user with a full-screen experience showcasing several products at the same time.
Meta Commerce Manager - ad formats
  1. Select your product catalog and your specific product set, in case you want to use one.
Meta Ads Manager - adding creatives
  1. When composing the ad, the images will be pulled automatically from your catalog into the template you’re creating. Write the headline, the ad text, and your link description, and add the dynamic placeholders you need: brand, product name, description, price, etc.
  1. Additionally, you can add dynamic overlays to the product images themselves, which will also be automatically pulled from your catalog: price, percentage off, free delivery, etc. You can position these overlays, select their color, and more. Moreover, at this stage, you can add a frame to your images, announcing a special offer, for example.
Meta Ads Manager - previewing finished ads
  1. You’re ready to hit ‘Save.’

And that’s it, your first Dynamic Product Ad is ready! ✨

Facebook dynamic product ads best practices

Get your notebook ready! These tips will set your dynamic product ads up for maximum conversions 💸

#1 Start with retargeting: While dynamic ads can serve various marketing objectives, Facebook suggests starting with retargeting because these ads are powerful reminders for potential customers to make the purchase.

#2 Don’t waste resources on existing customers: To focus on acquiring new customers, you need to exclude existing ones. This is a common issue for Facebook advertisers but Madgicx’s  Audience Launcher makes it a piece of cake. Its pre-set acquisition audiences have built-in exclusions that ensure your campaigns focus solely on acquisition. 

These automatically excluded audiences are called ‘Madgicx Non-Acquisition,’ and they include website visitors from the last 30 days and people who purchased in the last 180 days (based on your pixel data).

Madgicx - Excluding audiences

Launching an acquisition campaign with Madgicx is also super easy—just a few clicks, and you're off. Try it out risk-free with our 7-day FREE TRIAL!

#3 Select the correct conversion events: Identify the correct conversion events so that your dynamic ads campaign can target and optimize for the actions you care about. 

Be sure to add the ‘View Content’ events to all product pages, the ‘Add To Cart’ event to all your shopping cart pages, and the 'Purchase' event to the purchase or 'Thank You' page.

#4 Create cross-sell campaigns: Recent purchasers already know and like your brand which makes them likely to repurchase. Create a cross-sell campaign and show them other products they might like.

#5 Invest in dynamic creatives: Facebook DPAs require an extensive catalog to showcase multiple products across diverse audience segments. Consistently investing in a top-notch creative bank is essential for maximizing their effectiveness and avoiding ad fatigue, despite the associated high production costs. 

This is why business owners are seeking cost-effective production solutions such as Madgicx's Creative Workflow to help them meet their advertising needs, helping them consistently create converting Meta ads.

Madgicx Ad Library dashboard

You don't even need to know which creative direction to take. With the Creative Workflow, you can begin by exploring and saving Meta ad inspiration in the Madgicx Ad Library. Then, simply submit a brief along with your ad inspiration through Sparkle. One of our talented designers will be assigned to your request, ensuring your ads come to life in just 48 hours.

Once you've given your approval, your ads are automatically uploaded to Meta Ads Manager, allowing you to launch them from there or directly via Madgicx. You can even test the waters for free ($0 trial).

Inspiring dynamic product ad examples

1. Pedersen + Lennard

Pedersen+ Lennard Facebook Product Dynamic Ad

Why it works:

The product takes center stage: Pederson + Lennard isn't just telling you they have great products; they're showing you. Every slide demonstrates how the product would comfortably fit into your home or lifestyle. This is an approach that any product or service can learn from.

Simple and straightforward USPs: The advertisement efficiently communicates the unique selling points of the product, enabling consumers to quickly understand their options and what they stand to gain from the product. 

Soft sign-off: They include a message that resonates with the emotions of their audience: "Gather, revel, relax". Who doesn’t want that?

2. Burger King

Burger King Facebook Product Dynamic Ad

Why it works:

Commands attention: This dynamic ad mixes massive product shots in closeups across multiple slides accompanied by large, dominating text. Against a red background, it's impossible to ignore this boldness on your timeline.

Alliteration adds appeal: Alliteration is enjoyable to read as it flows smoothly and emphasizes the point. Just say 'Fierce flavor. Fierce satisfaction. Fierce Whopper.' and tell me that didn't make you a little hungry? ​​😏

Location, location, location: The last-ish slide simply displays a map of where I live along with a location pin placed at my nearest Burger King. This map would change in real time based on where your customers are and the closest place they can purchase your product or service. Pretty clever, right?

3. Kruger Shalati

Kruger Shalati Facebook Product Dynamic Ad

Why it works:

Paints a full picture: Ad or itinerary? Both! This Dynamic Product Ad features over 7 slides, each showcasing the full experience offering. With the experience laid out so clearly, you know exactly what to expect.

Call to action: Personally, I think the ad does a stellar job of luring you in and giving you a taste of the experience. So let's be real, they could've gone for the jugular with a 'Book Now' instead of the gentler 'Learn More'. Just saying 😉

4. Orial Outdoor

Orial Outdoor Facebook Product Dynamic Ad

Why it works:

Product-centric design: The product takes center stage in every carousel slide—no distractions, the backpack speaks for itself. 

Short ‘n sweet USPs: Right off the bat, you know it's 100% waterproof, available in 7 colors, and 30L in size. People can quickly know exactly what they can expect from the product.

Low barrier to ownership: They make it super easy to own the product with the 'buy now pay later' offering, leaving potential customers with no excuse not to get one for themselves.

Wrapping up

As you can see, Dynamic Ads on Facebook have changed the game for eCommerce businesses. They target the most profitable and “warmest” audiences with highly personalized ads. Plus, with Madgicx’s Audience Launcher and its built-in exclusions, achieving this level of precision requires almost no effort on your part.

Now you’re equipped to set up your product Facebook catalog and launch Dynamic Ad campaigns with zero-headache creative production solutions like Madgicx’s Creative Workflow. I've also provided you with tips and tricks to help you maximize the effectiveness of your ads.

You’re all set to boost your sales and conversion rate with Facebook Dynamic Ads. 

Good luck, and stay dynamic!

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Ad Creatives
Oct 20, 2021
Feb 28, 2024
Annette Nyembe

Digital copywriter with a passion for sculpting words that resonate in a digital age.

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