What are Dynamic Ads and how do they work?
Dynamic ads are based on a central product catalogue that contains all relevant articles, prices, availability and images. As soon as a user interacts with a product on the Internet, the system recognises this action, combines it with other user data and automatically generates a customised advertising message that precisely matches this product and its current status[3][7]. The advertising material is updated automatically as soon as prices change, offers start or items are sold out - in real time and without manual intervention[5].
BEST PRACTICE with a customer (name hidden due to NDA contract): An international retailer of sporting goods relies on Dynamic Ads to efficiently advertise its range of over 10,000 items. Thanks to automation, products that have been left in the shopping basket are returned in a targeted manner. The conversion rate of the retargeting campaigns increased by 42 % compared to static banners because users always see the product they were previously interested in. Campaign management runs almost completely automatically, manual adjustments are rarely necessary.
An example from the fashion sector: an online shop offers seasonal goods that change regularly. With Dynamic Ads, new collections are advertised immediately without the need to create new banners. Outdated products automatically disappear from the display and special prices are communicated in real time. The savings in the creative process are considerable and the relevance of the adverts increases significantly.
Companies also benefit from dynamic ads in the travel sector: airlines automatically adapt their advertising messages to current search queries and booked trips. For example, someone searching for bargain flights to Majorca receives targeted offers - including real-time price information and availability.
The advantages of Dynamic Ads at a glance
The strengths of dynamic ads are obvious: they save time, increase relevance and reduce the workload of marketing teams. Anyone who spends a lot of time manually creating adverts and researching keywords will find Dynamic Ads a powerful ally for greater efficiency[1][2][17]. The technology makes it possible to advertise thousands of products simultaneously and to address the target group with precisely the content that is most relevant at the current time[7][3].
Time savings and scalability
Dynamic Ads take over a large part of the campaign work automatically. No individual banners need to be created for each product, only a central catalogue needs to be maintained. This saves effort, reduces sources of error and enables new products to be added quickly[5][7]. Large product ranges can thus be advertised with comparatively little effort.
A practical example from the retail sector: a furniture store with over 5,000 items can immediately add new products to its advertising portfolio as soon as they appear in the catalogue. The adverts adapt themselves and special promotions are communicated automatically. Manual adjustments are not necessary, which makes the maintenance of large campaigns much easier.
BEST PRACTICE with a customer (name hidden due to NDA contract): A home technology retailer uses Dynamic Ads to promptly display seasonal offers such as air conditioning systems in the height of summer. Thanks to the automatic adjustment, price reductions are immediately reflected in the adverts. The campaign runs without manual intervention and the increase in sales over the year is around 28 %. Those responsible save around 15 hours a week per campaign.
Personalisation and relevance
Dynamic ads are able to analyse user behaviour and display the right product in a targeted manner. For example, anyone who has looked at a certain pair of shoes but not bought them will see this product again in the ad - often even with a personalised offer or a reference to the last availability[3][7]. This personalised approach not only increases the click rate, but also the likelihood of a purchase being completed.
An example from the food retail sector: an online supermarket shows users specific items that they have recently viewed or added to their shopping basket. Combined with recipe suggestions for the products, this increases interest and the likelihood of a purchase.
Upselling also benefits from dynamic ads: anyone who has viewed a laptop is suggested suitable accessories. The system also uses geodata, weather information or seasonal trends to tailor content even better to the target group[5].
BEST PRACTICE with a customer (name hidden due to NDA contract): An electronics retailer uses Dynamic Ads specifically for cross-selling. Customers interested in a washing machine automatically receive adverts for detergents, dryers and suitable warranty extensions. The campaign increases the average order value by 19 % and ensures a higher customer lifetime value.
Flexibility and real-time customisation
Dynamic Ads react to changes at lightning speed. Falling stock levels, new offers or changed prices are immediately taken into account in the adverts. This ensures that adverts are always up-to-date and prevents adverts being placed for products that are already sold out[5]. Companies therefore always stay up to date without having to constantly readjust their adverts themselves.
An example from the automotive trade: a car manufacturer advertises seasonal leasing offers via dynamic ads. As soon as a model is sold out, it automatically disappears from the display and new models are integrated immediately. The campaign runs for several months without manual adjustments and ensures a consistently high conversion rate.
Flexibility is also evident in the entertainment sector: streaming services automatically adapt their advertising to current trends and demand. Popular series or films are specifically advertised as soon as they are trending.
How do you optimise the use of Dynamic Ads?
The success of Dynamic Ads depends on several factors. If you want to use them, you should consider the following points:
- The product catalogue must be up-to-date and correctly maintained. Incorrect or outdated data leads to irrelevant advertising[12].
- Tracking and conversion measurement are essential for monitoring and optimising success[2].
- Negative keywords and exclusion lists help to avoid unwanted adverts[2].
- Dynamic ads are particularly suitable for companies with large or rapidly changing product ranges[6].
- Integration with existing campaigns and regular monitoring of success are important in order to realise the full potential[2][4].
Dynamic ads not only work on Facebook, Instagram or Google, but also on other platforms such as LinkedIn or in display networks[14]. If you are active in several channels, you can use the technology across multiple disciplines and thus leverage synergies.
Experience has shown that professional support such as iROI coaching helps with the introduction and optimisation of dynamic ads. The support helps to avoid stumbling blocks, find the right strategy and optimally embed the technology in the existing processes.
Challenges and common points of contact for coaching
In everyday coaching, clients often report challenges when setting up the product feed, integrating tracking or analysing the results. Uncertainties regarding budget management or data protection are not uncommon. This is where external support such as iROI coaching helps to develop solutions together, contribute experience from other projects and continuously optimise the use of dynamic ads.
Companies that use dynamic ads also benefit from the fact that they are no longer reliant on A/B tests or manual adjustments. The systems optimise themselves independently and learn continuously, which means that ad performance can be continuously improved over time[9]. Nevertheless, it still makes sense to regularly check whether the campaigns are achieving the desired goals.
My analysis
Dynamic ads are more than just an efficient tool - they are a game changer for modern marketing strategies. The technology offers answers to pressing questions in the digital sector: How can you advertise large product ranges efficiently? How do you stay up to date without constantly making manual adjustments? How do you reach every user with the right message at the right time? Dynamic ads provide these answers through automation, personalisation and scalability.
Companies that use Dynamic Ads often increase their efficiency, improve their conversion rates and reduce the workload of their teams. The technology is particularly valuable when product ranges are large, change frequently or when targeted retargeting is required. Professional support through iROI coaching helps to realise potential, overcome challenges and integrate dynamic ads into the corporate strategy in the long term.
Dynamic ads are already an integral part of many successful marketing strategies. Those who are not yet using them run the risk of being left behind. Those who use them in a targeted manner can significantly increase their reach, efficiency and sales.
Further links from the text above:
Amazon Advertising: Dynamic adverts | Guide [1]
Nerdly: Dynamic Search Ads - definition and tips [2]
advidera: Facebook Dynamic Ads - use and advantages [3]
adlicious: Functions and advantages of dynamic ads [5]
Hagenhoff: What are Dynamic Ads? [7]
Search heroes: Google Ads Automation [18]
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