So you’ve been thinking about launching a social media ad campaign. But you’re not sure whether to keep things simple with static images or go all in with dynamic creatives that automatically adapt to each viewer.

Worry not, we’ve prepared a comprehensive guide that breaks down exactly how static and dynamic ads work, their pros and cons, and when to use each for the best ROI.

What are static ads?

Static ads are straightforward: they show one fixed creative asset to everyone who sees them. 

Whether it’s a single image, a short video, or a carousel, every viewer gets the same message and content, regardless of their behavior, interests, or past interactions with your brand.

Static ads are great for campaigns that don’t require personalization. Think of new product or feature launches and seasonal promotions like Black Friday.

They help you deliver a clear, consistent message to a wide audience without the need for complex setup or data integration.

Because they’re simple and easy to produce, static ads are also perfect for testing different visuals, headlines, or offers before investing in larger campaigns. Once you find what resonates, you can double down with dynamic or performance-driven ads.

What are dynamic ads?

Dynamic ads automatically adjust the content based on each audience’s interests and preferences.

They use data signals like browsing activity, past purchases, tagged locations, and engagement to determine which ad variation each user sees. 

For example, someone who recently viewed trail gear or saved a hiking reel might see ads featuring waterproof hiking boots. Another person who frequently interacts with fitness influencers might suddenly see a flood of gym membership ads on their feed.

Essentially, the algorithm shows the right product or message to the right person at the right time. 

That’s what makes dynamic ads so powerful for personalization, and why they’re especially effective for retargeting and driving conversions.

Static ads vs dynamic ads: Side-by-side comparison

Okay, so you now understand the definition, the example, and the purpose of each ad. But if you still need the extra nudge, I’ve prepared the table below so you can clearly see where the two stand.

Which one performs better?

It depends on your goal.

If you’re focused on brand awareness or introducing your business to a new audience, static ads usually do the job better.

They’re easier to make and manage than dynamic ads, and they’re typically cheaper too. You can simply create one piece of content with one key message, and show it to as many people as you want.

But if your goal is conversions, dynamic ads tend to win, especially for eCommerce or retargeting campaigns. They reach twice the click-through rate (CTR) and cut down cost-per-acquisition (CPA) by half compared to static ads.

And consumers agree: 80% of them feel like VIP when brands serve them personalized experiences on a silver platter. So, if you want your customers to click, you need to know what makes them tick.

Dynamic ads also drive a 25% higher engagement rate than static ads. If the retargeting hits the spot, dynamic ads appeal to users, and they’re willing to interact with them more. They might snoop into your profile, check out some products, and if you’re lucky, they’ll purchase what they save in the shopping cart.

To sum up: if you want brand recognition, static ads remain unbeatable. However, if your goal is conversion, dynamic ads help bring in more clicks to your bottom line.

Static vs dynamic ad examples & best practices

Need inspiration? Here’s an example of both static and dynamic ads, along with key lessons you can apply to your own campaigns.

Static ads

Here’s a great example of a static product awareness campaign from Spacegoods. This ad showcases why its mushroom iced latte is a healthier, more sustainable alternative to regular coffee.

Image source: Medium

Key lessons:

• Lead with your main benefit: The ad instantly communicates what makes the product different: a better caffeine alternative without the jitters or crashing.

• Keep visuals clean and on-brand: The bright, minimalist design makes the product stand out and reinforces Spacegoods’ modern wellness aesthetic.

• Focus on awareness, not conversion: There’s no hard sell; just education and curiosity-building, which works perfectly for top-of-funnel campaigns.

• Clarity beats complexity: Simple headline, simple image, and clear message, making it easy for viewers to understand in seconds.

Dynamic ads

Dynamic ads are a bit trickier, but if you play your cards right, you’ve seen the numbers. CTR, CPA, conversions, all through the roof.

So, how to achieve success? Let’s study this product advertising example from Grailed.com, a fashion marketplace.

As you can see below, Grailed shows 3 ad variations with 3 different fashion products, but all content uses the same on-brand template (something you can do easily with Holo).

Image source: Hunchads

Key lessons:

• Keep your branding consistent: Even though the products vary, Grailed uses the same layout, colors, and fonts to maintain a cohesive brand look.

• Let personalization do the heavy lifting: Each viewer sees products tailored to their interests or browsing behavior, keeping the ad relevant and engaging.

• Use templates to scale fast: Instead of manually designing dozens of ads, use a dynamic ad template that automatically swaps in different products or visuals.

Further reading: Want to see more ad examples? Check out these brilliant articles:

• 7 Best Instagram Ads Examples that can Easily Convert

• 10 Facebook Ad Copy Best Practices (With Examples)

So, which one should you pick?

Static ads thrive on consistency, strong brand imagery, and catchy copywriting. They grab attention and spark curiosity, making people want to know more about your brand.

Dynamic ads, on the other hand, are more actionable. They adapt to user behavior and use real data to show the right products to the right people at the right time.

Can you use both at once? Absolutely. The trick is knowing when to use each.

Static ads belong at the top of your funnel, where you’re building awareness and shaping perceptions. They make your brand memorable, even if people don’t buy yet.

Dynamic ads work best in the middle or bottom of the funnel, where users have already shown interest or engaged with your brand. That’s where they shine: turning curious browsers into active buyers.

Combined, they give you the best of both worlds: awareness and conversion.

Ready to create both static and dynamic ads that actually convert? Try Holo. It instantly generates ad creatives, copy, and formats tailored to your goals and audience, helping you launch full-funnel campaigns in minutes.