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Facebook dynamic ADS

After Facebook introduced dynamic ads, many shops experienced a significant increase in sales, which was expected through personalized ads.

Providing timely and relevant information is the key to a successful marketing campaign and Facebook enabled it with this feature.

Facebook Pixel enable Dynamic Ads to use information about the visitors behavior on the website, thus allowing you to display the exact products that the customer wants to see.

This way retargeting will help you turn visitors into customers.

How to set up Dynamic Ads?

Initially, it may seem complicated, but I will walk you through the setup step by step and show you how simple it actually is.

1. Create a Product Catalog

A Product Catalog is a file that contains information about products in your shop. To upload it to Facebook, you need to have a Business Manager. After opening the Business Manager, you need to click on the upper left corner. A drop-down menu will open and you will find the Product Catalogs there.


Product catalog

Then click, Create Catalog


Produktkatalog 2

Enter the name of the Catalog


2.Create Product Feed

After naming and creating a new catalog, you need to create a Product Feed, which is in fact a list of products with necessary information taken from your website. A Product Feed can be a CSV, TSV, RSS XML, or ATOM XML file. It looks like this:


When creating a Product Feed you need to respect some rules, that you can read more about on the following link: https://developers.facebook.com/


After this step, you have to add the created Product Feed into the chosen Product Catalog. Go to „Product Feeds“ and click „Add Product Feed“.


A window like the following one will appear:



So, you can choose the feed name, currency. You also need to choose an upload type which your Product Feed will use. In case you choose “Scheduled Recurring Uploads”, you will be enabled to add a feed and update it (with just one click) whenever a change has been performed or when new products have been added. Also, you can choose an automatic update feature, which means the feed will be updated automatically and at the exact time you have set up. Choosing the „Single Upload“ option means you are able to add a static feed for products that will not be automatically updated.

When you click Next, a new window opens


Here you can set up the exact time when you want your Product Feed to be updated. Feed URL is the place where you enter the URL which contains information about the products you entered earlier and hosted somewhere on the web. It looks like this: https:/site-name/fbcatalog/feed. The username and password are not obligatory. By clicking on the Create Feed option you have successfully created your first feed.

3.Facebook Pixel

After you have created the Product Catalog, it is essential that you have a Facebook pixel set up on your website to let Facebook know which products have been viewed, added to the shopping cart or purchased by a visitor. The easiest way to check if your pixel is properly installed on your website is to install Google Chrome’s extension “Facebook Pixel Helper”.

For example:


Pixel Helper will enable you to check if your FB pixel is properly placed, whether it measures proper values and whether the Product Catalog is connected to Pixel.

4. Dynamic Ads set up

To create your first dynamic ad, you need to create a Product Set. It is very important to distinguish a Product Feed and a Product Set (be sure not to mix these two). The Product Set is practically a set of products that you've selected for your campaign. When you first set up your campaign, I suggest you start with a large group of products, after which you can create narrow product sets with a smaller group of products divided by categories or by a particular price range, etc.

After creating a Product Set, you need to set up a campaign with the following goal: „Product Catalog Sales“.


The next step is to set up an Ad Set.


First choose a Product Set you created. In this case that is a „MTB Bicycles“.



Then, select the desired target audience. In this case, all those who looked at or added to the cart, but did not buy, one of the products from the Product Set „MTB Bicycles“, in the previous 40 days.

Pay attention to the size of the target group. In this case, it's a very small target group, so we need to consider the size of the Ad Set. It is necessary to include more products so that the frequency does not increase quickly. In any case, you do want to bomb your customers with ads but not to overwhelm them and get to that point of „blindness“, when your brand is no longer noticeable.


After selecting a Product Set, budget and an audience, you need to choose a goal that you want your campaign to be optimized for. It can be: Add to cart, Purchase, etc. You can also choose a „conversion window” - a period of time in which someone made a valuable action on your website - whether it's selling or something else.

Creating an Ad


The key when creating an ad is to set up "URL Parameters" so you can track the results of your campaigns in Google Analytics. In this case, I created the following: utm_source=facebookads&utm_medium=facebook&utm_campaign=mtb


Keep in mind that Google Analytics and Facebook do not have the same sales tracking system, and that Google is focused only on last click sales, while Facebook will measure both the sales in which it participated only as one of the channels where the customer saw the ad or clicked on it.

Once you've set up "URL Parameters" correctly in Google Analytics, choose the source / medium dimension that contains facebookads (as you entered it initially in your ad setting) and you will see a list of products.


I hope I helped if only a little bit, and I hope you understand dynamic ads a bit better after reading this manual. Of course, this is a small part of dynamic ads, so if you have any questions, or if you are particularly interested in this subject, please do not hesitate to contact me.

Čočović Vladimir