How To Increase ROI Of Your App With Facebook Dynamic Ads

When creating a marketing campaign you have to calculate ROI (Return On Investment). Although it is very difficult to calculate this metric because of numerous external variables, there is a basic formula that can be applied:
Because Facebook is the biggest social network in the world, you can be sure that your gain from investment is significantly higher than the cost of investment. Moreover, Facebook shows relevant ads to those users that manifested interest for your products. We talked before about the benefits of using Facebook Ads for app retargeting. It can be used as a weapon against cart abandonment. If the user sees something he likes on your site and he doesn’t finish his purchase, next time when he opens Facebook, he will remember your products through Facebook Ads.

What Are Dynamic Product Ads

Dynamic Product Ads (DPAs) is an ad service from Facebook that enables the integration of company’s catalog with Facebook Ads and it is suitable for mobile phones, tablets and desktops. The advantage of this synchronization based on keywords is that Facebook Ads stops showing the ad after the products are not available anymore. These ads appear on the Newsfeed, Right – Hand column or Audience Network. Another benefit of investing your budget in this kind of ads is that you can select your audience if you want. In fact, you can read this feedback from Rachel Kwan, Online Marketing Manager at The Honest Company and Zack Greenberger, CEO of adMixt: “Dynamic ads helps us connect our large product catalog to each unique shopper with relevant and timely product ads. We’re seeing strong results, including a 34% increase in click through rate and a 38% reduction in cost per purchase.”

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Steps To Create A Dynamic Product Ad On Facebook

If you are thinking to implement this technique for your products, will list some few steps that you need to make.

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1- First you need to sign up for a Facebook Business Manager Account. If you have one then login with it. If not, go to Facebook For Business and create one.
2- Create a catalog. You just need to upload a XML or a CSV file where each column contains a header and information about your products, like:

  • product ID (unique identifier)
  • availability (in stock, out of stock, preorder)
  • product name (title)
  • description (less than 5000 characters)
  • URL for picture (dimensions are 1200 x 630)
  • price ( with the format of 9.99 USD)
  • (there are a huge number of fields for you to choose).

You can imagine this just like a database where Facebook Ads will search for products by product ID. For more information on how to create a product catalog, you can check the official documentation.
3- Configure the pixel. You have to place into your app a pixel that must contain at least 3 events: ViewContent, AddToCart, Purchase. As their names state, these variables show if the client view the product, if he added it to the cart and if he completed the purchase. You will need more details from App Events Page and to be sure that your pixel is working properly you should download the Facebook Pixel Helper.
4- Set the template. Create a dynamic ad template and remember that Product Ads can be shown as a single item or as a set or multiple items that moves on the screen using a carousel format. This template will help you promote your product in a very interesting manner.

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5- Enjoy your campaign. Now you can sit back and relax while Facebook is convincing your customers about the value of your brand.

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For mobile applications it is a developer’s job to be sure that Dynamic Product Ads On Facebook are installed properly. Facebook recommends the use of deep linking and deferred deep linking to offer your users a great experience within your app. Here are the steps to follow in this case:

  1. Install Facebook Mobile SDK for Android or Facebook Mobile SDK for iOS.
  2. Setup Mobile App Events.
  3. Setup Deep Linking.
  4. Setup Product Feed.
  5. Tracking Specs.

5 Best Practices Of Creating Dynamic Product Ads On Facebook

As we already highlighted earlier, you have full control on choosing your audience. We can give you some tips on how to concentrate your campaign better.

  1. Attract new customers. It doesn’t matter that they never bought from you. There is a beginning in everything. If they just looked at a product and never added it in the cart, you can make this happen now. With this type of ads you can find new customers and provide them awareness about your company.
  2. Highlight additional products of what customer already purchased. If the client bought a dress you can expose her some accessories that will complement the dress.
  3. Show other products of same type. If the customer looks for a pair of jeans, you can list some other items from the same category that he didn’t saw before.
  4. Follow the interest for some marque. This is suited for customers that show special interest for a specific brand. Use DPAs to display different products with that label.
  5. Fight against cart abandonment. According to Statista, online shopping cart abandonment rate around the world in 2016 is 68.63%. Take advantage of DPAs options to convince a customer who added some item in the cart to complete the purchase.

Bonus: If you don’t have products to promote, but you have other services to provide, you can use DPAs and instead of creating a catalog with products’ information you can create a Carousel Ad with a list of your services. In this case sky is the limit, really!


It is appreciable that advertisers show interest for other ways of selling and promoting than all those annoying ads with no association with user’s needs. With services like Facebook Dynamic Product Ads we feel that we are living in a new era of marketing where brands are focused on customers’ interest and they look for solutions to help users through their products and services.

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