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How to Set Up Facebook Dynamic Shopping Ads

How to Set Up Facebook Dynamic Shopping Ads for Your Shopify or WooCommerce Store 

This is a continuation of a previous article.

Please read this article first if you haven’t set up your Facebook product catalog.

Step 1 (Optional) Create Product Sets

If you have a wide variety of different products in your catalogue, you may want to consider segmenting them into product sets.

Product sets let you group similar products together, so you can show customers relevant products instead of serving them your entire catalogue.

This is especially useful when your product range has several different target markets because you can customise the offering you show to each of them.

If your products are all aimed at the same target market though, feel free to skip this step.


1.1 Go to the Facebook catalog manager and select your catalog. If it’s your first one, it should be the only one listed.

Screenshot showing where to find your Facebook catalog

1.2  Click on “Sets” under the “Catalog” Menu and then select “Create Set”.

Screenshot showing where to set up a Facebook ad set

1.3 Under “Create Set” you have two options. You can either create a set using filters on your catalogue (ideal for very large catalogues you can’t manually sort, but requires you to have tagged products correctly) or you can manually select items to form a new catalogue (ideal for being precise with which products you want to include). We’re going to go manually select items for now.

Screenshot showing where to choose filters or manually select items

1.4 Name your catalog product set something that makes sense to you, and tick the boxes next to all the products you want to be in it.

Screenshot showing how to manually select items for your catalog set

1.5 That’s it. Click “Create” and you’ve set up your catalog’s product set. Create as many as you need to match all your target markets.

Step 2: Creating a Dynamic Shopping Ad

Now that you have your catalog set up and ready, it’s time to create the actual dynamic product ads.

If you’ve created Facebook ads already, this should be relatively simple for you.

If not, we’ll run through the basics quickly.


2.1 Navigate back to the Facebook Ads Manager and click “Create” to start a new Facebook ad campaign. Under your Campaign Objective, select “Catalog sales” and make sure the catalog you set up previously is connected.

Screenshot showing where to choose the catalog sales objective

2.2. Click continue to start a new Ad Set. You can’t change your bidding strategy on a dynamic shopping ad, so scroll down. Double-check you have the right campaign objective and catalog selected.

Screenshot showing the first screen of a new Facebook ad campaign

2.3. If you set up a product set, now is the time to select it. For each different product set, repeat this process and make sure you’ve selected the next one here.

Screenshot showing where to select your product sets

2.4. Set your budget and schedule. This part is up to you and your business’ needs, but we recommend starting out slowly and seeing what works before you invest heavily into Facebook ads.

Screenshot showing where you can adjust your budget and timeframe

2.5.1. When selecting your target audience here, you have two options. You can either choose to retarget your website visitors or go after a cold audience. If you want to retarget website visitors, make sure your Facebook Pixel is installed and working and select the relevant option. You can then customise how you want to retarget your customers.

Screenshot showing where you can choose to retarget or go after a cold audience

2.5.2. If you want to go after a cold audience, set up your audience as you would for a normal Facebook ad. If you’ve already been running Facebook ads, feel free to reuse your existing audiences if you feel they’re relevant.

Screenshot showing the screen you see when setting up a cold audience

2.5.3. Select where you want your ads to appear. If you’re not sure, go with automatic placements and see which places perform the best. You can then narrow it down later.

Screenshot showing where you can choose between automatic and manual ad placements

2.6. Click next to begin setting up the actual ads. First of all, make sure you’ve selected the right Facebook page that you want the ad to be from. You can also connect your business Instagram account here if you’re using Instagram ads.

Screenshot showing where to check you have the right business page selected

2.7. For setting up the creative, you can either manually choose how you want ads to display or let Facebook do it for you. Dynamic formats can work just fine if you don’t want to split test and optimise the best layouts for your ads.

Screenshot showing the toggle for dynamic ad formats.

2.8. Make sure to fill in your ad copy here and include your website’s URL. Your product feed should automatically direct people to the individual item’s store page if they click on it, but you need a link to your main site in case they want to visit it too.

Screenshot showing where you put in the ad copy and URL

2.9. Make sure your Facebook Pixel is properly set up and working here. Keep in mind in our example we haven’t connected a Facebook pixel to this particular account, but you definitely want one for yours.

Screenshot showing where you check if you Facebook pixel is set up properly

2.10. That’s it! Click publish to start running your first Facebook dynamic shopping ads campaign.



We hope that helped you get started with your Facebook catalog ads and your first Facebook dynamic shopping ads campaign.

As we mentioned in the previous article, they’re a great tool for automating your remarketing efforts and delivering more relevant, personalised, offers to your customers.

Be sure to regularly check up on the performance of your campaign, and optimise it if need be.

If you want some general tips on why your Facebook ads may not be converting, check out this article. 

Else, be sure to check out the inSyte blog for more e-commerce marketing content like this.


This article was brought to you by Syte. 

If you need any help managing your Facebook advertising strategy, feel free to reach out to us using the form below.

We’re e-commerce digital marketing specialists with a passion for driving up your bottom line.

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