How Facebook Dynamic Ads Lift Your Revenue Line

Facebook Dynamic Ads are probably the revenue generator you have been looking for. Imagine being able to use someone else's abandoned cart?

Facebook Dynamic Ads
Mathew Slavica

Mathew Slavica

Founder, Digital Stand (Sydney), Industry Keynote Speaker. Obsessed with helping our clients grow.

Facebook Dynamic Ads are probably the revenue accelerator you have been looking for.

Imagine being able to use someone else's abandoned cart traffic to close your sale? The consumer searches a similar brand's product catalogue but does not make a purchase. Then when they are scrolling through Instagram or Facebook, they come across your range. They discover you hold similar products to what they were searching for previously. All of a sudden, you make a sale based on Facebook's algorithm and intelligence on the consumer.

Pretty neat right? You can run an ad campaign aiming for the last touchpoint, instead of doing all the heavy lifting. Rather than generating awareness, gaining consideration, and closing the sale (decision point). Alternatively, you can pick up right at the decision piece. Surely your cost of acquisition would come down as would your return on ad spend (ROAS).

Sounds too good to be true, right? But it is not. This is precisely how Facebook Dynamic product ads have been designed. You can cross-sell to a market you were not even aware existed. Using the data feed from millions of eCommerce platforms, Facebook uses this data to help predict buyer behaviour.

Effectively enabling you to target a broad audience that you did not know existed. With more than 3 billion active users globally, and 80 million businesses using the Facebook app, your reach is more substantial than you might realise.

In essence, Facebook Dynamic Ads helps businesses display the right products to the right people at the right time.

The Ad Creative feature allows you to test and select the best combinations of your ad assets. Ad assets could be:

  • Videos
  • Titles
  • CTAs
  • Images
  • Descriptions and so on.

You can use single image ads, carousels, and canvas type ad formats.

Why Facebook Dynamic Ads Work

Dynamic Ads can help your customer complete the transaction. They do so by minimising the number of conversions lost at the last stage of the sales process. Showing the products you know they are interested in, along with products that also might pique their interest.

Think Amazons, you may also be interested in the model.

In principle, this is how it works.

  1. 1. A prospect visits your website and skims through your products or services.
  2. 2. Facebook then uses pixels to pair products and customers while taking notes on how each user interacts with each item.
  3. 3. You can then select all visitors that showed the same behaviour and bring them back to your website. Gives you a platform to display the products the consumer engaged with, giving them updated and accurate information. Other information could be delivery time, offers, product reviews, or related products.

When you advertise on Facebook, you are competing with many millions of Facebook advertisers. Regardless of your budget, you are vying for attention. Or to paint a clearer picture, you are competing with Coke, Procter and Gamble, and Unilever! All of these brands vying for the consumer, customers' attention.

To be effective, you must be relevant and hyper targetted presenting the right ad to the right buyer at the right time. This is where Facebook Dynamic Ads really helps you compete with all the other ads on Facebook.

Essentially you are creating contextual based advertising increasing buyer intent.

When To Use Facebook Dynamic Ads and When Not To

The Carousel format allows you to display up to 10 images or videos using a single ad with each product having its link. So if you are starting and have less than ten products, single product ads might be a better way to go.

For 10-20 similar products, you could show the bestselling options with a standard carousel ad. Having more creative space within an ad allows you to:

  • Showcase multiple features about one product: Customers are better informed through relevant products.
  • Highlight different products that link to different landing pages: Increasing your click-through rate and providing potential customers with a greater selection.
  • Sell the benefits: If you are not selling physical goods, show your visitors how they will benefit from being your customers through images, videos, or both.
  • Explain a process: Walk your prospects through a step by step process to help them understand how the business works.
  • Showcase details about a service or promotion.
  • Tell a story about your brand using images or videos.

Requirements For Setting Up Dynamic Ads

Before you can create a Facebook dynamic ad, here are some conditions you need to meet:

1. Create a Product Catalogue. A product catalogue contains all the information for items you would like to advertise. Details could be product descriptions, price, and availability. You can also create product sets within the catalogue to control items that appear in your ads.

2. Install a Facebook Pixel or Facebook SDK. The pixel is a code installed on your website. It allows you to track, measure, optimise, and understand people's actions when visiting your site.

To run a successful product dynamic ad, your pixel code must include the View Content, Add To Cart, and Purchase standard events. The Facebook SDK is suitable to use on your mobile phone app ads.

3. Connect your pixel to your catalogue. The connection enables you to show people items from your list if they had interacted with or searched for the products.


As you can see, Facebook Dynamic Ads are a great solution for your online advertising. They allow you to tailor your ads to potential customers and optimise for business success. They can help achieve your sales targets and create awareness for new products among a larger population.

Advertising is only an intrusion when the viewer is not interested in your product or service. In this instance, it merely means that you have targetted incorrectly or created poor content. After all, as advertisers, we don't need everyone to buy from us, but rather the consumers and customers that we can serve well.

To create a frictionless purchase process for customers, we must present them with as few friction points as possible. This means not showing a female demographic, the latest Gillette Razor for men, but rather the latest Gillette Razor for women. I know this may sound funny and often unlikely, but it is not the case.

Despite what many believe your product or service does not span all demographics. You have a core group of people who are very interested in what you are selling. This core group, is where you will find your greatest leverage to grow your business.

This core group will then push you out into other demographics, through digital word of mouth.

But perhaps it is best if you think about it this way. Facebook started at Harvard, expanded to other US campuses, then to international campuses, then to parents, grandparents and so on.

To be an effective advertiser on social media, you must use the same principles that drove the social media platforms. It just makes sense. Facebook dynamic ads provide you with the capability to micro-target your known and unknown customers.

It allows you to build a relationship with the customers that are most interested in your product and service. Those who are likely to purchase, refer, and support. For early adopters of Facebook Dynamic Ads, they have seen up to 40% lower cost per acquisition, and a 2.6X lift in return on ad spend.

Since 2013 we have been helping brands like yours maximise ROI, and find new audiences and new markets. We have a wealth of social media content you are welcome to download for free, and we would also be very interested in talking to you about your projects.

To learn more about our services, you can contact us here or click the image below to enquire.

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