How To Set-Up Dynamic Ads on Facebook?

If your objective is online conversion these ads should be your go-to FB ads. FB dynamic ads are essentially remarketing ads with dynamic creatives based on customer actions on your website or the products you intend to sell. These ads can be multi-product like carousel ads or can be a single image ad depending on the stage of the sales funnel at which your target customer is and the associated product. So, you do not have to worry about creating separate ads for each of your products. All your products can be promoted with a single campaign. 

How do Dynamic Ads work:

First off, place the Facebook pixel on your website. Facebook pixel is a piece of code that you add to your website to track customer actions on your website. You can find it under Tools in the Ad Manager. It is fairly easy to install the pixel yourself, but, you can also get a developer to place the pixel code on your website.

The pixel will track the following events whenever a user visits your website. 

  1. View Content – Customers viewing particular product pages on your website. 
  2. Add to Cart – The second step in an ideal customer journey will be to select a product and add it to the cart. This pixel tracks product or products added by a customer to the website shopping cart. 
  3. Purchase – Tracks customers completing a purchase successfully.

The pixel is a great way to not only push your prospects from one stage of the funnel to the next but also to show them only those products that they are interested in. Thus increasing chances of conversion.

You can target users who check out products on your website add them to cart but do not complete purchase, or target users who have made a purchase by showing them similar products or product combinations. 

You can use dynamic ads for awareness objective also. In this case, the ads will be shown to users who have not visited your website or checked your products. Once you have selected the audience for which you want to run these dynamic ads, Facebook will optimize the products to promote over time in tune with the audience response to the ads. 

Ad space and properties where Dynamic Ad appear

  1. Facebook
    • Feeds
    • Right column
    • Marketplace
  2. Instagram
    • Feed
    • Stories
  3. Audience Network
    • Native, banner and interstitial
  4. Messenger
    • Home

Ad Requirements

Two foremost requirements for dynamic ads include placing the Facebook Pixel on your website and a product catalog with product set. Once you have set up the Facebook pixel on your website, you can go ahead and create a product catalog. 

Setting-up the Product Catalog

Creating a product catalog lets you control what you show in your dynamic ads. While you can create a product catalog with the catalog manager it is more convenient to do so through the Business Manager account. Using the Business Manager, you can also give access to other people on your team. The product catalog should have product ID, name, description, landing page link, image URL, availability status, and more. 

 1. Go to Business Manager and select the Catalogs option under Assets

Facebook Business Manager- Setting-Up Dynamic Ads on Facebook?

2. Types of Product Catalogs

FB has the following different types of catalog options each customized for the respective product types. We will be setting up sample ads for an E-commerce business.

Selecting Business Category in Facebook Business Manager
  • If you use any of the following e-commerce platforms, you can simply select them and connect the online store to your FB account. This might take up to 24 hours. 
Integrating with e- commerce platforms in Facebook Business manager
  • Adding a customized catalog – With this option, you will need to upload and set-up the catalog on Facebook and upload products either manually or automatically with a data feed. Select the Upload Product Info and put in the page name and give the catalog a name. 
Adding products to your Catalogue in Facebook Business Manager: Setting Up Dynamic Ads On Facebook

3. Adding Products

Using Data Feed to Add products to your Catalogue in Facebook Business Manager: Setting Up Dynamic Ads On Facebook
  • The First Method : You can use is to add products manually by filling out a simple form with the required details for each product you intend to showcase in the catalog. This method is recommended if you intend to promote only a handful of products. 
  • The Second Method is where you upload a data feed with all the products you want to showcase or promote through the ads.

With this method, you can link an external file and set-up a scheduled time when Facebook will automatically detect and upload the file. With this method, you can simply update the source data file and the same will reflect in your Dynamic Ads feed. Eliminate any issues with out of stock products being shown or prices change not reflecting. You can simply create a file in Google sheets and share the link here. If your data file is on your server or has a password only access you will need to update the associated details as in the screenshot above. 

The other option in the data-feed upload is to create a data file in the prescribed format and upload it. You can download the sample CSV here and upload the requisite information. The image below shows a sample with the compulsory fields but there are a host of other info and details that you can use in your catalog. 

Formats that Facebook supports for the data feed files include – CSV, TSV, XML (RSS) and XML (ATOM). Facebook has sample files for each format that you can download. 

  • The Third Method is to place the Facebook pixel on your website and let Facebook show import products directly from there. Go for this option if you want the website updates for the products to reflect instantaneously. 

4. Creating A Product Set

The next and important step is to create a Product Set. Think of it as a set of filters to ensure that you have control over what products are shown, what information for each product is shown, and more. The filters you can use consist of the product information you have added while creating your catalog. This can range from price, brand category, availability to more detailed and complex filters. 

Creating A Product Set On Facebook Business Manager

As you can see in the image above, you can create product sets to ensure precise targeting based on audiences, ad groups, marketing objectives, price point and more. This improves performance by ensuring that you can control ads based on both audience segments as well as product segments. Do note that currently, you cannot edit an existing product set. If you need to re-configure any filters you will need to duplicate the existing product set, make necessary changes and then delete the original filter. 

Setting up your Dynamic Product Ad

  1. Go to Ad Manager and select the Catalogue Sales option under Conversion
  2. Under Catalogue Sales give your Campaign a name and select the catalog you want to promote from the drop-down
  3. Now select the products or product set you want to promote 
  4. Move on the audience section and select if you want to remarket or show the ad to prospects who have not yet visited your website. 
Audience Selection: Setting Up Dynamic Ads On Facebook

5. For Remarketing You Need to Select and Configure the Following:

Setting Up Dynamic Ads On Facebook

6) Creating Ad Template

Facebook gives several creative options for dynamic product ads that are easy to implement. Once you have completed the steps above – Set up FB pixels and creating a product catalog, you can start working on your template. This will ensure that you do not need to create individual ads for each of the products or product sets. 

Ad formats that are available for dynamic ads –

Single image

  • Image ratio: 1.91:1
  • Image Size: 500 X 500
  • pixels  carousel


  • Maximum cards allowed for desktop – 5
  • Maximum cards allowed for mobile – 30
  • Image ratio – 1:1
  • Image size – 500 X 500 pixel or higher
  • For carousel format, you can select a static profile image either at the beginning or at the end of the images. 


  • Image ratio – 1.91:1
  • Image size – 1200 X 628 pixels.

Instagram stories

  • Image ratios: 9:16 and 16:9 to 4:5.
  • Facebook also recommends that you leave about 250 pixels from the top and bottom of the ad image free from any text and logos. As it might get covered with the CTA or the profile icon on Insta. 

7. Creative Customization

You can add category info, pricing, sales or offer prices and delivery info for the products in a product set. Most information will be auto-filled with data you have added to the product catalog which you can edit or continue with. 

Ad Creative: Setting Up Dynamic Ads On Facebook

To customize the template, go to Customize image option under Creative Tools in the Content Section. You can either select to add info from the catalog or add a frame. 

The info you can add includes the following:

  1. Price 
  2. Percentage off 
  3. Strikethrough price 
  4. Free Delivery
Ad Copy: Setting Up Dynamic Ads On Facebook

You can select the font, position, and color you want to use. 
The second and more customizable option is to upload frames. With this option, you can add themes, add additional delivery info or add your logo to the product images. From opacity to size, color to position, you can customize the frames and make your product images impactful. 

Ad Creative: Setting Up Dynamic Ads On Facebook

And your first set of DPAs or Dynamic Product Ads are ready. Take them to live and do not forget to check the performance regularly. 

Key Takeaways

  • Dynamic Product Ads are a great way to target prospects and customers who have already shown an interest in your products. Targeting this set of customers is bound to increase conversion rates. 
  • The key requirements to set up your first set of dynamic ads are
    • A product catalog + product sets. Ensure that the information you add in the catalog is updated and reviewed frequently. 
    • Event or conversion pixel implementation on your website 
    • Ensuring that your ad creative is optimized for mobile viewing and is not too cluttered or crowded.