Guide
Dynamic Ads
Dynamic ads are advertisements that automatically customize content based on insights, offering improved campaign efficiency and higher conversion rates. Brands can use these ads across various formats (display, video, social, search) to deliver tailored experiences to customers, using dynamic bidding to optimize ad placement for maximum impact.
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What are dynamic ads?
Dynamic ads are automated advertisements that customize their content, offers, and creative elements based on customer insights and preferences. These relevant ads automatically adjust their messaging and visuals to match individual customers' interests, browsing history, and real-time actions, helping deliver more relevant advertising experiences.
Benefits of dynamic ads
Dynamic ads are beneficial to brands seeking to elevate their digital advertising performance through automation and customization. These dynamic marketing solutions help marketers to automate, optimize, and scale their digital advertising efforts while maintaining relevance for each customer. Brands implementing dynamic ads can expect three main advantages:
- Improved campaign efficiency
- Higher conversion rates
- Enhanced relevancy at scale
Dynamic ads streamline the advertising process by automatically generating and optimizing ad content, significantly reducing the time and resources needed for campaign management. This automation allows marketers to promote multiple products or services simultaneously without manually creating individual ads for each offering.
By delivering highly relevant content to target audiences, dynamic ads help drive better conversion rates and return on ad spend (ROAS). The ability to show products or services based on actual customer interest and insights creates more meaningful interactions that lead to purchases. When combined with dynamic bidding, these ads can help further optimize performance by automatically adjusting bids based on conversion likelihood.
Dynamic ads enable marketers to deliver relevant experiences to large audiences without sacrificing quality. This scalable approach ensures each customer sees tailored content while maintaining efficient campaign management across broad customer segments.
How do dynamic ads work?
Dynamic ads work by automatically generating relevant content based on customer insights and predefined templates. These tailored marketing messages use customer insights to create relevant ads for the intended audience. Dynamic ads perform best in remarketing campaigns, product catalogs with frequently changing inventories, and throughout various stages of the marketing funnel.
The process of creating and serving dynamic ads involves several key steps. First, advertisers set up a product feed or content library and design ad templates with customizable elements. Then, advanced algorithms analyze customer insights and match it with the most relevant content from the feed. When a customer encounters an ad placement, the system instantly assembles a relevant ad using the template and selected content. This real-time optimization continues throughout the campaign, with analytics informing adjustments to improve conversion rates. Dynamic creative optimization (DCO) takes this a step further by automatically testing various combinations of headlines, images, and calls-to-action to determine the most effective ad compositions for different audiences.
Are dynamic ads effective?
Dynamic ads are highly effective when properly implemented and managed. Success in dynamic marketing largely depends on having a strong digital foundation, from well-maintained product feeds to comprehensive website content. These ads are particularly valuable for brands that can leverage customer analytics boost remarketing efforts, and deliver relevant experiences across social media and other channels. When implemented as part of a comprehensive dynamic marketing strategy, these ads can significantly improve campaign performance and customer engagement.
Most campaigns need at least 30 days to collect enough analytics to understand customer insights and refine targeting strategies. Brands should ensure their websites are well-organized, as dynamic ads automatically pull and adapt content from these sources to create relevant messaging. This foundation sets the stage for various types of dynamic ad campaigns, each designed to meet specific marketing goals.
Dynamic ad examples
Case Study
Tansuno Gen, a Japanese furniture company, transformed from a traditional manufacturer to a digital retailer on Amazon.co.jp using a comprehensive advertising strategy including Amazon Ads solutions. Tansuno Gen implemented Sponsored Products, Sponsored Brands, and Sponsored Display with dynamic bidding adjustments, particularly during peak shopping seasons. Their strategic approach included creating themed Brand Store pages, running advance promotional campaigns, and optimizing inventory management, which led to impressive results during their New Life sales event with 160% growth and over 80% of purchases coming from new-to-brand customers.
Case Study
Chatsumino Sato, a family-run Japanese tea company, modernized their marketing strategy by optimizing their product listings and Brand Store with meaningful content and launching Sponsored Products. The brand also used automatic targeting and dynamic bidding adjustments, which they fine-tuned every two days. Their expanded advertising approach, which included Sponsored Brands for Prime Day and Sponsored Display for remarketing, resulted in 2x year-over-year sales growth attributed to advertising, with 90% of Sponsored Display sales coming from new-to-brand customers.
Case Study
Solaray, a wellness brand, implemented a comprehensive digital marketing strategy by collaborating with Amazon Ads partner iDerive to utilize Amazon DSP for programmatic advertising across multiple channels. The brand optimized their cross-channel presence using Sponsored Products, securing placements on Amazon Freevee, and implementing the "Buy on Amazon" feature while segmenting campaigns for custom audiences. Their integrated approach, which included Amazon Marketing Cloud analytics and omnichannel marketing tactics, resulted in a 52% reduction in customer acquisition costs and a 412% increase in overall purchase rates.
Types of dynamic ads
Dynamic ads come in many formats and share a core principle: they automatically adapt their content to customers based on insights. This adaptability allows for relevant messaging across various formats and channels. From search results to social media, these dynamic ad types help marketers deliver tailored experiences throughout the customer journey. Let's explore the main types of dynamic ads:
Dynamic display ads
These adaptable banner ads adjust their size, content, and offers in real time based on customer insights and preferences, directing customers to relevant landing pages while maintaining consistent branding across channels.
Dynamic video ads
Using interchangeable elements like scenes, product images, and overlay text, these ads create relevant video content particularly effective for social media and streaming channels.
Dynamic social ads
Leveraging social media customer insights, these ads deliver highly targeted content across social media. Dynamic social ads automatically customize their messaging, visuals, and calls-to-action based on customers' insights creating more relevant social media experiences.
Dynamic product ads (DPAs)
Primarily serving digital retailers, DPAs showcase products based on customer insights, dynamically updating pricing and availability. They're especially effective for remarketing and abandoned cart recovery.
Dynamic search ads
These ads generate content based on your website's content rather than predefined keywords, matching search queries with relevant pages on your site to align with customer intent.
Dynamic remarketing ads
These ads reconnect with customers who have previously interacted with your brand by showing them relevant content based on their past engagement. The ads automatically select products, services, or content that matches demonstrated interests and previous interactions with your website.
To maximize the effectiveness of these dynamic ad types, combine your ad creative and content with dynamic bidding to help ensure ads reach the right audiences at the right time and price.
Dynamic advertising with Amazon Ads
Sponsored Products are cost-per-click ads that promote individual product listings on Amazon and select premium apps and websites. You select your products to advertise and choose keywords to target or let Amazon’s systems target relevant keywords automatically. You control how much you want to spend on your bids and budgets and can measure your ads’ performance. Ads serve both on desktop and mobile browsers as well as on the Amazon mobile app. When customers click your ad, they are taken to the advertised product’s detail page.
Sponsored Display ads showcase products to relevant audiences across Amazon-owned and partner networks. You can choose between automated or custom images for your ad—both are dynamically optimized in the Sponsored Display self-service platform. This means that if you add multiple products to your campaign, the creative elements that have the highest chance of conversion will be served in your ads automatically. If you make changes to the product detail page of your featured product, the retail-centric elements of your ad creative will be refreshed automatically.
Amazon DSP is an omnichannel marketing solution that provides choice and flexibility to drive meaningful moments between brands and consumers. It leverages unique first-party data and AI to deliver impactful ads, ensuring your campaigns remain effective in a changing landscape. Additionally, its AI-powered automation streamlines campaign management and empowers advertisers with transparent reporting for data-driven decision-making. By combining privacy-centric clean rooms with streamlined workflows, Amazon DSP offers a comprehensive solution that unlocks deeper audience insights and optimizes campaign performance.
Video ads help brands reach audiences across Streaming TV, inclusive of channels like Prime Video and live sports, and online video, inclusive of Amazon-affiliated sites like Twitch and top third-party publishers. Through featured solutions, these ads use dynamic capabilities to serve relevant content to relevant audiences across their purchase journey.
If you have limited experience, contact us to request services managed by Amazon Ads. Budget minimums apply.
FAQ
Dynamic ads automatically customize their content, offers, and creative elements based on customer insights and preferences, making them highly relevant for each audience. In contrast, display ads are simpler and static in nature, combining fixed copy, visual elements, and a call-to-action message that stays the same for everyone who sees them. While display ads work like a digital billboard that doesn't change, dynamic ads use automation and real-time optimization to deliver more relevant advertising experiences.
Static ads display the same content, imagery, and messaging to all audiences, making them simpler to create and ideal for straightforward brand awareness campaigns. Dynamic ads, however, adapt their content based on customer insights, showing different products, prices, or offers depending on the customer's interests. While static ads offer complete creative control and require fewer resources, dynamic ads provide greater relevancy. However, dynamic ads need more technical expertise and ongoing management to implement effectively.
Programmatic advertising refers to the automated process of buying and placing digital ad inventory across channels. Dynamic advertising, on the other hand, customizes ad content based on customer insights and preferences. These two approaches serve different purposes—dynamic ads control what content is shown to each viewer, while programmatic advertising manages how and where ads are purchased and delivered. Though both use automation, programmatic advertising focuses on efficient media buying through real-time bidding, while dynamic advertising creates relevant content for each viewer.
Dynamic bidding is a feature that increases your bids for clicks that may be more likely to convert, and also reduces your bids for clicks that are less likely to convert a sale. This bidding strategy helps optimize ad spend and is best used for campaigns aimed at increasing sales or promoting deals and excess inventory items. For more information, read our guide to dynamic bidding with Sponsored Products.
Dynamic bidding works by increasing bids for clicks more likely to convert to a sale and reducing them for less likely conversions. The system can increase bids by up to 100% for placements at the top of the first page of results, and up to 50% for all other placements. For example, if your original bid is $1.00, it could be increased up to $2.00 for top placements or up to $1.50 for other placements. To make the best out of your strategy, take the “How to choose a dynamic bidding strategy in your Sponsored Products campaign” course.