10 Best Practices for Facebook Dynamic Product Ads

OnlineSales.ai Blog

‘People don’t go to Facebook to make decisions, but to avoid making them!’

True, right?

However, with the new ad format introduced by Facebook – Dynamic Product Ads (DPA), advertisers can now capture the users at their intent. Advertisers can now target specific groups of people with highly relevant ads that match where the user is within the sales channel.

What are Facebook Dynamic Product Ads?

Facebook Dynamic Product ads are a solution designed to help businesses promote multiple products or their entire product catalog, across all the devices their customers use. With product ads, businesses can showcase more products and people on Facebook can discover more relevant products.

Source – Facebook

How does it work?


How Does Facebook Dynamic Product Ads Work?

Why are Dynamic Product Ads important?

  • Highly Relevant – The ads displayed show only the products that the potential buyers are interested in.
  • Scalability – Reduces the workload of creating multiple ad units for every product/product line.
  • Targeting Across Devices – With the ad format, advertisers can now target customers across Desktop, Smartphones and Tablets.
  • Up-selling and Cross-Selling – You can target users who have purchased an item from one product set, and cross-sell items from another category. Also, with this ad format, advertisers can promote products with a higher profitability. (Up-sell)

How to setup a Dynamic Product Ad?

1. Creating a Product Catalog

This is the initial stage for setting up the campaign – where you put together your product details in an XML or CSV format. You can download the sample product feed from here. Once the setup is complete, the catalog will act as a database where the information is pulled in dynamically, depending on what the pixel captures.

2. Pixel Configuration

The ads use the same remarketing pixel. So if you already have it installed, you need to configure a few events that are able to track user actions. The three events that you need to configure on your website are – View Content, Added to Cart, Purchase.

Pro Tip: With the Facebook Pixel Helper extension you can also cross-check if the pixel setup is done properly, and also debug for any issues.

10 Best Practices for Facebook Dynamic Product Ads

1. Setup campaigns targeting visitors showing Intent

Dynamic Product Ads gives the advertisers the flexibility of tailoring their ads according to the different stages of the funnel, enabling you to reach to the right people with correctly mapped products based on their interests.

With the help of events captured by the Facebook pixel, various types of audiences can be built:

So what is the audience segment which we should choose?

Users who have Added to Cart but have not purchased would make the strongest case.

They have come the furthest in the funnel and are best suited for remarketing.

Pro Tip: If your website is driving a lot of traffic, decrease your time-frame, which further leads to better conversion rates.

2. With Multiple campaigns, Always exclude

While running multiple Dynamic Product Ads campaigns, there is always the fear of overlapping audiences.

In such cases, your ads would compete against each other – resulting in downfall of performance.

Hence it is always recommended to set up mutually exclusive campaigns.

3. Re-Target to your Mobile App Audience

Have a Mobile App? Make sure you are capturing the audiences who are browsing in your app.

You can configure app events in your app which would further allow you to use the ad format for your Mobile audience.

This enables you to cross- target – users who browsed on your app and target them on Desktop, and vice versa.

4. A/B Test Carousel Ads

The idea behind carousel ads is to show more in a single advert.

This Ad format is a huge hit as the carousel format allows you to showcase up to ten images or videos within a single advert, each with its own link.

Carousel Ads | OnlineSales.ai Blog

Image Source : Facebook


A carousel ad can showcase a minimum of 2 and a maximum of 10 ad creatives.

For Dynamic Product Ads, you can show up to 10 ads in one post based on the activity of the user on the website.

It is always beneficial to show more products as it increases the chances of conversion.

If you are still unsure about only using the Carousel Ad format, you can always A/B test your ads.

5. Always start with a Reasonable Budget and Bid

Bidding low on Dynamic Product ads will not enable you to reach all your potential audiences.

Also, low budgets might bring down the performance of the campaigns. Hence, always start with a decent budget and bid and alter according to performance.

6. Website Traffic on the lower side?

If your website is low on traffic, you should always increase your time window to increase exposure.

Increasing your retention will help you in reaching out to audiences who visit a different page in a particular time-frame.

7. Checking your Product Catalog – Make it a daily habit

The key to a successful Dynamic Product Ads campaign is a healthy product catalog and pixel configuration.

You should make it a habit to check this on a daily basis if all the products are uploaded correctly and captured correctly by the pixels.

While setting up the product catalog, we should make sure that the pixel is correctly associated with the catalog.

Also, advertisers should make sure that the product set created has a sizeable amount of products, otherwise it might affect delivery.

8. Check for Events Configuration

After the pixel is placed, check if the events are configured correctly – View Content, Added to Cart and Purchase.

A discrepancy of 20-25% is normal, however, if this percentage increases, get your pixels checked if they are placed correctly.

9. Further Segment your Catalog with Custom Labels

Adding Custom Labels to your Product Feed will help you in further segmenting your product catalog and will help you in showing more relevant products.

For example, you can segment mobile accessories to power banks and further segment it into Price Points. Facebook allows you to add up to 7 custom labels.

10. Lastly, have patience!

The most important thing with Dynamic Product Ads is to give it at least 4-5 days to pick up, as it takes some time for the campaign to build audiences and stabilize. Once stabilized, Dynamic Product Ads would surely be a game changer for you!

If you want us to do a quick performance audit of your Facebook account, you can reach out to us on hi@onlinesales.ai!

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Prabhdeep Singh
Sr. Business Analyst at Sokrati.com

1 Comment

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