Back in 2015, Facebook launched dynamic product ads to help eCommerce businesses run scalable ad campaigns that were targeted and optimised. Utilising dynamic Facebook ad campaigns can increase conversions and boost sales without users spending precious time configuring individual campaigns. 

Most eCommerce stores have integrated features like Facebook Catalog and Facebook Pixel to make setting up dynamic facebook ads easy. If you want to expand your target audience, there are strategies to help you utilise Facebook’s dynamic ads. We go through some of our top tips to help you drive eCommerce sales with dynamic ads on Facebook.  

Why You Should Use Dynamic Facebook Ads

Facebook ads are a great way of boosting conversions on your site. They rely on data captured by Facebook pixel which helps you target the right audience and the products they will buy as well as optimising your ad campaigns. 

They’ll also save time as it allows you to automate the ad creation process. This means that you can use a single ad template and then generate it to create as many ads as you need. Once the campaign is set up once, it continues to run and update your inventory. 

It also updates your store’s inventory automatically as it is synced directly to your store’s product feed. This ensures that your ads are updated with product prices and availability. Now that you know their flexibility, here are some of the ways you can use dynamic Facebook ads

an image for the how to drive ecommerce sales with dynamic facebook ads
facebook dynamic ads pixel infographic
Facebook ads are a great way of boosting conversions on your site. They rely on data captured by Facebook pixel which helps you target the right audience (Image Credit: Facebook)

Use Dynamic Facebook Ads to Implement Retargeting Campaigns

Retargeting is a great way to drive a potential customer to your eCommerce store if they didn’t convert the first time around. It is a typical action for online shoppers to abandon their carts. In fact, 72% of online shoppers abandon their carts, so using a retargeting campaign can be a great way to attract people back to your eCommerce store to convert. Retargeting can: 

  • Help promote Promote upsells and cross-sells
  • Persuade a customer to rethink a product that they were looking at
  • Ensure that discounts are promoted that people are interested in
  • Can be mobile-friendly and promote to those on mobile devices

There are plenty of ways that retargeting helps but understanding how to set a campaign up is difficult. Here is how you set a retargeting campaign up on Facebook.

How to Set Up a Retargeting Campaign on Facebook 

The first step is to install Facebook Pixel on your site. This will help you establish your click-through rate. Be sure to install Pixel on every page of your site as this allows you to create a wide range of retargeting campaigns that have been specifically designed for web conversion. 

You can set up your Facebook Pixel by logging into Facebook Ad manager and selecting the Pixels option. You’ll then get the chance to create your Facebook Pixel. Give your Facebook Pixel a name and soon you’ll be told that your Facebook Pixel is available. You can install the Pixel on your own, or you can email it to your dev team. If you choose to install the pixel on your own, you’ll be presented with a code.

Note: You can also track conversions from the social network using this pixel. Tracking conversions will help you to monitor what actions are being taken and by whom. Standard conversions that you can track include:

  • Search
  • Add to Cart
  • Add to Wishlist
  • Initiate Checkout 
  • View Content
  • Lead
  • Make Purchase
  • Complete Registration
  • Add Payment Info

Tracking these conversions requires you to edit the code to the page you have decided to place it on. Code adjustments require ‘standard event code’ which helps track it. 

If you want to track conversions, you need to edit the code in relation to the page you’re going to place it on. The code adjustments you need to make are shown in the far right-hand column of the chart above – known as ‘Standard event code.’

the specialist event code to help track your webpages on for facebook pixel
Tracking these conversions requires you to edit the code to the page you have decided to place it on. Code adjustments require ‘standard event code’ which helps track it.
(Image Credit: Neil Patel)

Run Dynamic Product Ads

When running a large eCommerce store, a great feature that Facebook allows you to utilise is dynamic product ads. This is where Facebook essentially runs your retargeting campaigns for you automatically. It requires you to upload product feeds which is a complex process but can save you time and money.

How to Set Up a Dynamic Product Ad

Simply open the Facebook Ads Manager and click create. From there you can select Catalog Sales as your objective and then select the product catalogue with the inventory you’d like to promote in your ads. Click Continue and open the products section and choose a product set or create a new one.

In the Audience section, choose the people you want to target with your ads. Choose your placements, budget, and schedule for your ads then click continue. Select the Facebook Page and, if you’d like, the Instagram account representing the business you’re advertising

Select an ad format for your template: you can choose a single image, carousel, or collection format Fill in the rest of the details for your ad

The brilliant thing about dynamic ad campaigns is that they Once you’ve set up an ad they continue working for you for as long as you want and target the right people with the right products, and constantly update pricing and availability.

Use Lookalike Audiences

Facebook can help you generate more sales through targeted ads by using ‘lookalike audiences’. This feature is created by Facebook to help you spot similarities to your target audience. This allows you to target your ads with greater specificity.

It also gives you clear data when you are setting up ad targeting which will improve your click-through rate as potential customers will behave similarly. Using this gives you a better ROI for campaigns as ads will be relevant to people who are seeing them in social media platforms.

a screenshot of setting up a lookalike audience on facebook
This feature is created by Facebook to help you spot similarities to your target audience. This allows you to target your ads with greater specificity. (Image Credit: Facebook)

How to Set Up Lookalike Audiences

If you want to set up a ‘Lookalike Audience,’ head over to the ‘Audiences’ section and click on ‘Lookalike Audiences,’ after clicking on ‘Create Audience.’ You then get to input some parameters, so that Facebook can develop a Lookalike Audience that resembles your existing potential customer profile.

When creating your Lookalike Audience, you first need to decide what it is that you want your campaign to achieve. Then, you need to gather an ‘Audience’ of people who have already achieved that campaign objective like buying a product.

You might want to upload data if you don’t want to wait around for Facebook to build a Custom Audience based on future visitors to your e-commerce site. This is entirely dependent on the data you have already collected on your audience though. If you want your Lookalike Audience to be really targeted, you can base it on a conversion tracking pixel.

This will ensure that Facebook only targets people who are likely to take a certain action on your site or e-commerce business.When you’ve selected the base audience that Facebook will work with to develop the Lookalike Audience, you are then required to decide how similar you want that audience to be.

To begin with, it is helpful to keep the Audience Size at 1, which keeps your campaign targeted. Once you begin to get results, you might want to try an Audience Size of ‘1,’ but within another country. This could deliver cheaper clicks, making your campaign more cost effective while maintaining returns on social network channels.

The Importance of Dynamic Facebook Ads

Facebook ads can grow your eCommerce business immensely if they are utilised correctly. Using lookalike audiences and retargeting are just some of the examples that you can use to grow your audience and your business. 

Want to use Facebook ads in your business but unsure of where to begin? Get in touch with ProfileTree to meet with one of our social media experts to help you work out an effective social media strategy to reach your audience. 

Unleash the Power of Dynamic Facebook Ads: Benefits for eCommerce Businesses.

In the competitive world of eCommerce, reaching the right audience and converting browsers into buyers is crucial. Dynamic Facebook Ads (DPAs) emerge as a potent weapon in your marketing arsenal, offering unique advantages specifically tailored to online businesses. Let’s explore the key benefits of DPAs that can propel your eCommerce sales:

1. Retargeting Made Easy: Capture Abandoned Carts and Rekindle Interest:

Imagine a customer browsing your website, adding items to their cart, but then vanishing before completing the purchase. DPAs track this behavior and automatically serve relevant ads featuring those abandoned items across Facebook and Instagram. This personalized reminder re-engages potential customers, increases the chances of purchase completion, and recovers lost revenue.

2. Dynamic Product Feeds: Say Goodbye to Manual Ad Creation:

Creating individual ads for every product in your inventory can be tedious and time-consuming. DPAs eliminate this burden by automatically generating ads based on your product feed. Simply connect your store’s product catalog to Facebook, and the platform does the heavy lifting, ensuring your ads always showcase the latest products and prices in real-time.

3. Carousel Formats: Showcase Multiple Products, Capture More Attention:

Gone are the days of single-product ads. DPAs utilize engaging carousel formats, displaying a selection of relevant products within a single ad. This allows you to showcase variations, highlight complementary items, and capture the attention of users browsing through their Facebook feed.

4. Laser-Focused Targeting: Reach the Right Audience at the Right Time:

Facebook boasts a treasure trove of user data, and DPAs leverage this to target your ideal customers with pinpoint accuracy. Demographic targeting reaches specific age groups or locations, while interest-based targeting connects you with users who exhibit purchase behaviors similar to your existing customers. Additionally, create custom audiences based on website visitors or app users, ensuring your ads reach those already familiar with your brand.

5. A/B Testing and Conversion Tracking: Continuously Optimize for Success:

DPAs empower you to experiment and refine your approach for maximum impact. A/B test different ad variations, including visuals, copy, and targeting parameters, to identify the most effective combinations. Built-in conversion tracking measures actions like website visits and purchases, providing valuable insights to optimize your campaigns and maximize your return on ad spend (ROAS).

By harnessing these benefits, Dynamic Facebook Ads empower you to:

  • Boost sales and conversions: Retargeting and personalized product recommendations drive users towards purchase completion.
  • Save time and resources: Automatic ad generation and real-time updates streamline your advertising workflow.
  • Enhance user experience: Engaging carousel formats and relevant product suggestions capture attention and personalize the shopping journey.
  • Reach the right audience: Laser-focused targeting ensures your ads reach qualified potential customers.
  • Optimize for success: A/B testing and conversion tracking guide you towards the most effective marketing strategies.

Setting Up Dynamic Facebook Ads: A Step-by-Step Guide with Pro Tips

Get ready to unlock the sales potential of Dynamic Facebook Ads (DPAs) with this comprehensive guide! We’ll walk you through the setup process, share pro tips, and enhance your journey with visual aids. Let’s dive in:

1. Create a Compelling Product Catalog:

  • Step: Connect your online store to Facebook Business Manager and upload your product data.
  • Pro Tip: Optimize your product feed with high-quality images, accurate descriptions, and relevant categories. Include essential details like price, availability, and unique selling propositions (USPs).
  • Visual Aid: Screenshot of the Facebook Business Manager product catalog upload interface.

2. Install the Facebook Pixel:

  • Step: Generate a Pixel code and integrate it into your website’s code or use plugins for easier installation.
  • Pro Tip: Configure Pixel events to track key actions like website visits, add-to-carts, and purchases. This data fuels powerful targeting and conversion tracking.
  • Visual Aid: Infographic highlighting key Pixel events and their importance in DPAs.

3. Build Your Dynamic Product Ad Campaign:

  • Step: Navigate to Ads Manager and create a new campaign with “Catalog Sales” as the objective.
  • Pro Tip: Choose “Automatic Placements” to reach your audience across Facebook, Instagram, and Messenger, or select specific placements for granular control.
  • Visual Aid: Short video demonstrating campaign creation steps in Ads Manager.

4. Set Up Your Ad Set and Targeting:

  • Step: Select your product catalog, define your budget, and set your bidding strategy (automatic or manual).
  • Pro Tip: Leverage Facebook’s targeting options to reach specific demographics, interests, and behaviors relevant to your ideal customers. Consider creating custom audiences based on website visitors or app users.
  • Visual Aid: Screenshot showcasing various targeting options within Ads Manager.

5. Craft Engaging Ad Creative:

  • Step: Choose engaging product images and write clear, concise ad copy highlighting product benefits and calls to action.
  • Pro Tip: Leverage carousel formats to showcase multiple products and A/B test different ad variations to identify the most effective combinations.
  • Visual Aid: Examples of compelling DPA creatives featuring carousels and impactful copy.

6. Launch and Monitor Your Campaign:

  • Step: Once everything is set, launch your campaign and monitor its performance through Ads Manager metrics like impressions, clicks, conversions, and cost per acquisition (CPA).
  • Pro Tip: Continuously optimize your campaign based on data insights. Fine-tune targeting, adjust bids, and test new ad variations to maximize your return on ad spend (ROAS).
  • Visual Aid: Dashboard view within Ads Manager displaying key campaign performance metrics.

Remember: The journey doesn’t end here! Consider these additional tips for long-term success:

  • Regularly update your product catalog with new items and price changes.
  • Experiment with different campaign goals (e.g., website traffic, brand awareness) to reach diverse objectives.
  • Stay informed about Facebook advertising best practices and algorithm updates.

By following these steps, pro tips, and leveraging visual aids, you’ll be well on your way to mastering Dynamic Facebook Ads and unlocking their full potential to drive more sales and achieve your eCommerce goals!

Optimizing Dynamic Facebook Ads for Conversions: A Deep Dive

Now that your Dynamic Facebook Ads (DPAs) are up and running, it’s time to fine-tune for maximum impact! Let’s explore key optimization strategies to convert browsers into buyers:

1. Targeting Strategies: Reach the Right People, Right Now:

  • Custom Audiences: Leverage website visitors, app users, or email subscribers to target individuals already familiar with your brand. Retarget abandoned cart audiences with the specific products they left behind.
  • Lookalike Audiences: Expand your reach to new users who share similar characteristics with your existing customers. This data-driven approach identifies potential buyers with high conversion potential.
  • Interest-Based Targeting: Go beyond demographics and target users based on their interests and online behavior. Reach individuals who actively search for or engage with products similar to yours.

Pro Tip: Combine these strategies for laser-focused targeting. For example, retarget website visitors with abandoned cart items while simultaneously reaching a lookalike audience with similar interests.

2. Creative Best Practices: Compelling Ads that Convert:

  • Captivating Copy: Highlight product benefits, use strong calls to action (CTAs), and personalize messages when possible. Keep it concise and action-oriented.
  • High-Quality Images: Showcase your products in their best light with clear, professional visuals. Use multiple images in carousels to tell a visual story.
  • Ad Format Harmony: Choose formats that align with your goals and audience preferences. Carousel formats excel for showcasing multiple products, while single image ads might be suitable for highlighting specific offers.

Pro Tip: A/B test different ad variations to see what resonates best with your audience. Test copy, visuals, and formats to identify the winning combinations.

3. Bidding and Budget Strategies: Maximize Your Return on Ad Spend (ROAS):

  • Automatic Bidding: Leverage Facebook’s algorithms to optimize bids for conversions within your budget constraints. Perfect for beginners or campaigns with diverse goals.
  • Manual Bidding: Take more control by setting specific bids for each impression. Ideal for experienced users with well-defined conversion goals.

Pro Tip: Start with automatic bidding to gather data and refine your strategy. As you gain confidence, transition to manual bidding for precise control and potential cost savings.

4. Conversion Tracking and Analysis: Measure, Learn, and Optimize:

  • Set Up Conversion Tracking: Ensure Facebook accurately tracks desired actions like website purchases or app installs. This data fuels effective targeting and campaign optimization.
  • Analyze Key Metrics: Monitor impressions, clicks, conversions, cost per acquisition (CPA), and return on ad spend (ROAS). Identify areas for improvement and adjust your campaign accordingly.

Pro Tip: Utilize Facebook’s Insights tool for granular performance analysis. Segment data by audience, placement, and device to pinpoint opportunities for optimization.

Remember: Optimization is an ongoing process. Continuously monitor your campaigns, experiment with different strategies, and adapt based on data insights. By mastering these elements, you’ll turn Dynamic Facebook Ads into a powerful tool for driving conversions and achieving your eCommerce goals.

Advanced Techniques for Dynamic Facebook Ads: Unleashing the Full Potential

Once you’ve mastered the basics of Dynamic Facebook Ads (DPAs), it’s time to delve into advanced techniques that unlock even greater results. Let’s explore powerful strategies to personalize user experiences, drive targeted sales, and boost your eCommerce game:

1. Dynamic Retargeting with Abandoned Cart Audiences: Recover Lost Sales:

  • Target Specific Abandoned Carts: Go beyond simply reminding users about abandoned carts. Leverage Facebook’s dynamic capabilities to display the exact products left behind, personalized to each individual.
  • Offer Incentives to Sweeten the Deal: Include limited-time discounts, free shipping offers, or personalized product recommendations alongside the abandoned items to incentivize purchase completion.
  • Retarget Across Devices: Ensure users see their abandoned cart reminders regardless of the device they used while browsing, maximizing the chances of completing the purchase.

Pro Tip: Utilize Facebook’s “Dynamic Retargeting for Broad Audiences” feature to reach users who browsed specific product categories but didn’t add items to their carts, further expanding your retargeting reach.

2. Leveraging Product Sets and Custom Audiences: Hyper-Targeted Campaigns:

  • Create Product Sets: Group products based on specific criteria like category, price range, brand, or seasonality. This allows you to create targeted campaigns for specific segments of your audience.
  • Build Custom Audiences: Refine your targeting by creating custom audiences based on user behavior or purchase history. For example, target high-value customers with exclusive product offerings or reach users who purchased specific items with relevant recommendations.
  • Combine Strategies for Granular Targeting: Blend product sets and custom audiences to deliver highly personalized ad experiences. Imagine showcasing new arrivals in a specific category to users who previously purchased similar items.

Pro Tip: Experiment with dynamic exclusion to prevent showing ads for products users already own or have recently viewed, ensuring a fresh and relevant ad experience.

3. Dynamic Remarketing for Cross-Selling and Upselling: Boost Revenue:

  • Recommend Complementary Products: Leverage Facebook’s dynamic capabilities to suggest products that complement past purchases or browsing behavior. This encourages users to explore more of your offerings and increases average order value.
  • Upsell to Premium Options: Suggest higher-end versions of products users have shown interest in. Showcase added features and benefits to entice them to upgrade their purchase.
  • Personalize Recommendations for Maximum Impact: Consider user demographics, purchase history, and browsing behavior to deliver truly relevant and enticing cross-sell and upsell recommendations.

Pro Tip: A/B test different recommendation algorithms and product selection strategies to identify the most effective approach for driving higher revenue through cross-selling and upselling.

Remember: Mastering these advanced techniques requires practice and continuous experimentation. Track your results closely, analyze data insights, and refine your approach over time. By unlocking the full potential of DPAs, you’ll personalize user experiences, drive targeted sales, and watch your eCommerce business flourish.


1. Are Dynamic Facebook Ads right for my business?

DPAs are perfect for eCommerce businesses with established product catalogs and a desire to increase sales through retargeting, personalized recommendations, and targeted campaigns.

2. How much does it cost to run Dynamic Facebook Ads?

Facebook advertising operates on a pay-per-click (PPC) model, meaning you only pay when someone clicks on your ad. Costs depend on your targeting, bidding strategy, and budget.

3. Do I need technical expertise to set up DPAs?

The basic setup is user-friendly, but mastering advanced techniques might require some understanding of Facebook advertising and data analysis. Consider seeking professional help if needed.

4. How often should I monitor and optimize my DPAs?

Regularly monitor campaign performance and adjust your strategy based on data insights. A/B testing helps identify the best performing ad variations and targeting approaches.

5. What are some other advanced DPA techniques I can explore?

Facebook offers features like dynamic creative optimization and dynamic language optimization for further personalization and campaign automation.

Ecommerce Sales Conclusion:

Dynamic Facebook Ads offer a powerful tool for eCommerce businesses to drive sales, personalize user experiences, and reach targeted audiences. By mastering the techniques outlined in this article, you can unlock the full potential of DPAs and achieve your eCommerce goals.

Remember, continuous learning, experimentation, and data-driven optimization are key to success. Embrace the dynamic nature of Facebook advertising and watch your business flourish with the power of DPAs!

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