What are Dynamic Ads and how do they work?

They’ve been around for a while, and it looks like they’re here to stay.

As a concept, dynamic ads are not new. But, like everything else, the advancement of technology has seen dynamic ads become more sophisticated and deliver a greater ROI to advertisers, thus fuelling more attention from mainstream marketing.

Dynamic Ads have the potential to revolutionise creative ad design in a similar way to how programmatic advertising has changed media buying.

Here’s our guide to them…

What they are

Dynamic Ads dynamically change the content of an ad before it is displayed to the consumer – they enable you to display relevant and personalised ads without human intervention.

Using external data such as, the time of day, weather, online behaviour, age, gender, fluctuations in the stock market or the price of cryptocurrency; dynamic ads allow you to deliver messaging in a more effective and relevant way.

This can create lucrative marketing opportunities for your business. Having the functionality to change ads based on external data not only saves time, but can often outperform other methods of ad delivery.

How they work?

Dynamic ads look the same as regular banner ads, they usually contain a combination of an image, promotion, call to action and product/service information.

Instead of creating several different ads, you only have to create a template that the network can use. Once you have created your template, the network will automatically personalise ads to users based on their demographic or external data.

The easiest way to create a template and get started is to use a digital advertising platform

The main features

The most common features of dynamic ads are:

  • Contextual Targeting – displays ads to users on websites you know they will visit. They are automatically generated based on the content of the website.
  • Dynamic Retargeting – shows ads to users who have already visited your website or have shown interest in what you are offering. This is a very good strategy to reduce cart abonnements by luring users back to complete the purchase.
  • Sequential Storytelling – sequential storytelling shows ads in a certain order to target, cultivate and lead users to a desired outcome, usually in the form of a conversion on a landing page.
  • Dynamic Feeds – useful for product advertising, especially for companies who have lots of products with ever changing inventory. Dynamic feeds let you generate hundreds of ad variations in minutes and are synced with your stock levels so you never have to worry about spending your ad budget on products that are out of stock.

The difference between dynamic and static ads

Compared to static banners, dynamic ads update to match the users mood and unique preferences.

When done correctly, a dynamic ad can target different audiences with remarkable accuracy, displaying personalised ads to the right user at the right time.

The difference is, instead of individuals constructing the creative, an algorithm learns what combination of colours, images, and text incites the best response toward achieving the goal.

The algorithm takes into account different data (weather, time of day, device, user, etc), and serves the correct assets to elicit the best response.

The challenge here is that training an algorithm takes time, so a portion of media spend is used churning through potential ineffective permutations of ad content.

What are the benefits of dynamic ads?

Let’s summarise the benefits of dynamic ads:

  • Save Time

enable you to promote a wide range of products using lots of different images, call to actions and content without the need to manually configure each creative.

  • Increased Conversion Rates

a dynamic ad is much more likely to resonate with user preferences, boost intent, product favourability which is likely to lead to a higher chance of conversion on a landing page.

  • Use media spend more effectively

delivering the same content won’t create a meaningful connection in every context. So, without relevant, personalised creatives, there’s still a chance for wastage in media spend. Dynamic feeds also eradicate the chance of spending budget on products that are out of stock.

  • Tailoring ads to a user’s mood

The same message to any one individual will not always resonate. A personalised dynamic ad allows the ad content to improve relevance based on a user’s context.

People have different mindsets throughout the day, in a morning commute they want quick information bursts, when they are searching for work related products they want details and when shopping at the weekend they want products, prices and offers.

  • It allows marketers to pull customers through the purchase funnel

Another benefit of dynamic creative is that you are able to create predictable dialogues with your customers in order to drive them through to conversion.

Consumers tend to exhibit similar behaviours when purchasing similar products. Dynamic ads learn to understand a users’ behaviour to deliver appropriate messaging that drives conversions.


Over the past few years we’ve experienced big changes in how marketers buy media to connect with their audiences.

Dynamic Advertising takes a highly targeted campaign to the next level to ensure that it matches the exact message to the individual.

It allows you to pull on external factors to elevate your campaign ensuring the user receives a tailored message

Flexible solutions to suit your business