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Dynamic Product Ads: The Precision Engine Behind Modern Growth Marketing

Written by Nikhil Santhosh | Jul 23, 2025 6:06:34 AM

 

 
Have you ever had that uncanny feeling that an ad is speaking directly to your deepest shopping desires? Perhaps it's that very pair of sneakers you left abandoned in your cart or a shiny gadget you only casually browsed yesterday. Welcome to the ingenious world of Dynamic Product Ads (DPAs) - the savvy marketers' secret weapon for delivering personalized, hyper-relevant ad experiences that customers actually welcome.

DPAs rise above generic ads, leveraging the power of real-time data to deliver messages that resonate on a personal level. Instead of broadcasting blindly, dynamic ads whisper precisely what your audience needs to hear, exactly when they’re most likely to act. In fact, ads powered by dynamic personalization have delivered up to 160% higher return on ad spend and over 106% increase in conversions, proving that when ads feel tailored, users are far more likely to take action.

In this blog, we’ll unpack how Dynamic Product Ads are reshaping the playbook for personalized advertising for retargeting campaigns and why they’re fast becoming indispensable for growth marketers across eCommerce, Travel, FinTech, and beyond.

What are Dynamic Product Ads?

Dynamic Product Ads are programmatic ad units that deliver personalized creative to individual users, based on what they have previously browsed, searched for, or shown interest in. These creatives are built dynamically using data from a product or service catalog and often include auto-populated elements such as product name, image, price, discount, or availability.

For instance, if a user browses running shoes on a sportswear app but doesn’t purchase, a DPA can later show them the same shoes or similar products from the product catalog on other apps, websites, or social platforms, nudging them toward conversion.

While DPAs are often associated with eCommerce, their utility spans across verticals like Travel, FinTech, EdTech, Food Delivery, OTT, Real Estate, and more, wherever there's a catalog-like offering and user behavior to personalize for.

Within retargeting DPAs have immense use for marketers: from retargeting abandoned subscriptions in OTT apps, to recommending personalized investment plans in a FinTech app, or re-engaging travel app users with live flight fares, DPAs automatically generate hyper-relevant creatives by pulling data from product/service catalogs and matching them with user behavior.

Intrigued? Now let's unpack how this magic happens.

How Dynamic Product Ads Work

Dynamic Product Ads (DPAs) are designed to re-engage users with high intent by combining behavior insights, catalog data, and programmatic delivery, creating a frictionless path back to conversion. Rather than relying on static remarketing, DPAs assemble the right message in real time, for the right user, in the right moment.

Here’s how the process works:

  1. 1. Signal Capture from User Behavior
    When users interact with your app such as viewing a subscription plan, searching for a location, dropping off from checkout, or browsing a content category, those behavioral signals are tracked in real time via SDKs, APIs, or first-party data integrations.

    2. Product/Service Catalog Matching
    These signals are then mapped to a structured product or service catalog that contains metadata such as product names, prices, availability, images, discounts, or plan details. This catalog isn’t limited to retail. It can be a feed of travel packages, financial instruments, educational courses, or food menus.

    3. Real-Time Creative Assembly
    Using programmatic logic, the platform dynamically assembles a personalized ad creative that matches the user’s prior behavior with relevant catalog content. This includes adaptive components like pricing, urgency messages (“only 2 left”), or promotional banners, that are built and served in real-time.

    4. Deep Linking to Conversion
    Each ad includes deep links or universal links that take the user directly back to the most relevant screen inside your app, be it the checkout page, course detail, payment gateway, or listing detail, thereby reducing friction and accelerating action.

  2. Formats & Channels: Meeting Consumers Everywhere



One of the most powerful advantages of DPAs lies in their creative versatility. Unlike traditional formats that require manual production for each asset, DPAs are built dynamically using structured data feeds. This allows advertisers to scale personalization across multiple ad types without sacrificing design quality or brand consistency.

Here’s a breakdown of the most commonly used creative formats for DPAs and where they deliver best:

  • Single Product Ads
    Focused, data-driven creatives that highlight one item. Usually ideal for testing concepts, visuals, or promotional hooks like pricing or time-sensitive offers.

  • Multi-Product Ads
    Showcase a range of items in one frame, dynamically mixed based on user preferences, browsing history, or top-performing products. Great for upselling or cross-selling.

  • Carousels
    Scrollable or autoplay ads grouped by category (e.g., genres, destinations, product types) to tailor discovery. Effective for storytelling or product bundling.

  • Slanted and Half-Screen Creatives
    Bold, branded formats optimized for mobile screens. These variants allow for color customization, urgency tags (e.g., “Only 2 left”), and clean CTAs.

  • Notification-Style Ads
    Designed to emulate system alerts or push messages, these units are subtle but highly effective in drawing attention—especially for time-sensitive deals or promotions.

  • Why Dynamic Product Ads Matter 

1. Scale Meets Personalization

Traditional personalization often hits a scale ceiling. With DPAs, brands can launch thousands of personalized creatives without creating each ad manually. This is particularly useful for retailers and marketplaces with large, fast-changing inventories.

41% of consumers say they are more likely to purchase from brands that offer personalized ads, and DPAs provide the framework to make that happen at scale.

2. Performance That Converts

DPAs are a proven performance driver, reporting a 20% higher conversion rate on average compared to static ads for the same campaigns. This uplift comes from higher relevance,  making users more likely to click and convert.

3. Efficient Retargeting and Cross-Selling

Dynamic Product Ads are not just for cart abandoners. They are equally effective in:

  • Reactivating dormant users by showcasing new arrivals from their favorite categories.
  • Cross-selling and upselling by suggesting complementary items after a purchase.
  • Acquisition via lookalike audiences based on users who interacted with the catalog.

 

Dynamic Product Ads: The Future of Intent-Driven Advertising


Dynamic Product Ads have evolved from being a niche retargeting tool, to be the engine room of personalized advertising. As AI-powered targeting, privacy-first identity solutions, and real-time creative automation evolve, DPAs will continue to gain sophistication becoming full-funnel growth drivers. For advertisers ready to future-proof their performance strategy, now is the time to embed DPA into your programmatic playbook.

Because in a world where attention is fleeting, relevance isn't optional—it’s everything.

Ready to launch DPA for your brand? Set up your DPA campaign within mDSP! Contact us to know more about our capabilities and offerings.