The State of Catalog Ads 2025

A seismic shift is reshaping the landscape of digital advertising in 2025.

As traditional performance marketing tactics loose their luster, one lesser-talked-about format continues to grow and quietly snatch up a larger share of ad dollars than anybody thought possible; 

Catalog ads, also known as DPA (dynamic product ads).

In 2024, dynamic product ads accounted for 25% of ecommerce ad spend in Meta.

So, what does that mean for you? 

Catalog ads give you the power to truly personalize your audience's experience with your brand. With catalog ads, it's never been easier to: 

Boost conversion rates

Increase ROAS

Build more touch-points with your customers

Establish a competitive edge in your market

Between 2023 and 2024, catalog ads showed a performance increase of 50% to 90% compared to traditional static ads.

And in 2025, AI is enabling platforms like Meta to find the best ad spots and bid amounts instantly at an unprecedented scale, creating personalized experiences that feel less like interruptions and more like conversations between brands and customers.

This isn't just a passing trend; it's a fundamental transformation in how brands connect with their audience.

The global digital ad market is projected to reach $650bn in 2025, with a compound annual growth rate (CAGR) of 9.58% expected through 2034. Within this expanding ecosystem, dynamic product ads are poised to play an increasingly central role.

In our 2025 State of Catalog Ads report, Marpipe partnered up Sharma Brands to uncover the emerging trends in catalog ads to ensure marketers and brands can harness the power of catalog ads to drive unprecedented growth and set themselves up for years to come.

Ready?

Quick Glance: Catalog Ads in 2024 Feed Optimization: Best Practices Running Successful Catalog Ad Campaigns A Rising Star for Catalog Ads Best Days, Times, and Price Points for Effective Catalog Ads Performance of Sales vs Non-sales seasons Video Catalog Ads Emerging Trends for 2025 and Beyond Key Takeaways

2024 Quick Glance

In 2024 we witnessed huge shifts in the digital advertising market.

In 2024, catalog ads continued their rise as the fastest growing ad format.

Catalog ads grew to account for 25% of ecommerce ad spend in Meta.

Brands that utilized catalog ads in 2024 reported:

76% increase in average order value

47% lower cost per acquisition

53% higher conversion rates than static ads

41% lower cost per purchase

55% higher return on ad spend

Catalog ads are a sleeping giant that demands attention from brands and marketers in 2025.

40%

of Meta's global revenue comes from catalog ads

Plus, we saw Enriched Catalogs via Marpipe play an instrumental role in increasing catalog ad performance for brands across the board.
Across 1,500+ accounts, Marpipe was responsible for:

Powering over $174M in ad spend behind enriched catalogs

Generating over $2B in revenue for brands via enriched catalogs

Achieving 7.8x in ROAS compared to 4.9x for plain catalog ads

Achieving 2.54% CTR for Marpipe Enriched catalogs vs plain catalogs

$174M

in ad spend behind Marpipe Enriched catalogs in 2024

$2B

in revenue generated for brands leveraging Marpipe enriched catalog ads

Enriched Catalogs

Plain

Catalogs Ads

7.8x

ROAS

VS.

4.9x

ROAS

2.5%

CTR

VS.

2.3%

CTR

Feed Optimization: Best Practices

In 2025, the quality of your product feed will make or break your catalog.

If you’re running catalog ads and not prioritizing feed quality, you’re leaving performance on the table.

Algorithms thrive on details. A generic description like “cream mug” won’t get you far. But if your feed includes rich details—product features, price points, lifestyle context—the algorithm can target the right audience far more effectively.

Optimize your product images for mobile viewing and make sure they are high-quality

Better product categorization = better results. A well-built feed gives Meta (or any ad platform) the data it needs to deliver your ads to the right people, driving higher conversions and better ROI.

Feed management tools simplify this.

Think of your feed as ammunition for ad platforms.

Sloppy feed = weak results.

Running Successful Catalog Ad Campaigns

Setting up and launching a successful catalog ad campaign on Meta is rapidly evolving. Here’s 7 things to keep an eye on as you set up your campaigns this year:

AI-driven Automation

Meta's Advantage+ Shopping campaigns have become a game-changer. Leveraging machine learning, Meta is rapidly optimizing ad delivery and performance. This means brands should:

Generate a diverse range of creative assets (20-50 or more) to fuel the AI's learning process

Focus on high-quality first-party data to improve algorithm performance

Reduce manual targeting and trust the AI to find the right audience

Creative Optimization

You should be constantly testing new creative.

Utilize DPA creative templates for different product sets, especially for special offerings or seasonal sales

Implement time-based templates, such as countdown clocks for holiday campaigns.

Include user reviews in DPA creative to build trust

Leverage Product Level Video to create video assets for products

Simplified Campaign Structure

Less is more.

Run fewer ad sets (2-3) with Advantage+ campaigns, as opposed to multiple ad sets in traditional campaigns

Focus on providing quality inputs rather than micromanaging campaign settings.

Mobile-First Approach

Smartphones are everywhere.

Optimize creative assets for mobile viewing, considering formats like Collection ads for fullscreen mobile shopping experiences.

Enhanced Personalization

Personalization always wins.

Leverage Meta's vast user data to create highly targeted ads that change content in real-time

Try using catalog ads for retargeting strategies to reduce abandoned cart rates

With Enriched DPA you can test DPA for prospecting strategies

Health and Wellness Restrictions

Health & Wellness privacy concerns.

Meta has restricted health and wellness brands from using key event tracking like "Purchase" or "Add to Cart"

Affected brands and advertisers must shift to non-restricted events such as "Landing Page Views" or "Engagement" for campaign optimization

Continuous Testing and Optimization

Always be testing.

While AI handles much of the optimization, brands should always A/B test different creative elements

Regularly refresh your creative assets to avoid ad fatigue

A Rising Star for Catalog Ads

While Meta is by far the dominant player for catalog ads, there’s a rising star that’s generating massive returns for brands.

Snap has been making huge strides in catalog ads. In 2025, Snap will pursue aggresive targets for its advertising business.

Quick Glance:

Snap has 557 million total members and over 300 million daily active users

38% of US Snap users don't use Instagram regularly, offering a a new audience for brands

Why brands should care:

Lower competition compared to Facebook and Instagram, resulting in lower CPC and higher ROAS

It’s already working:

Adidas saw a 52% growth in ROAS using Snap dynamic product ads

Shady Rays sunglasses experienced a remarkable 286% growth in ROAS on Snap

Running Effective Catalog Ads on Snap

Test multiple Ad Formats

Snap offers various dynamic ad formats, including Single Image/Video Ads, Collection Ads, and Story Ads. Each format has its strengths, so brands should experiment with different types to find the most effective mix.

For instance, Collection Ads can showcase multiple products in a gallery format, while Story Ads can create an immersive brand experience within Snap's Discover platform.

Optimize for mobile-first, vertical viewing

Given Snap's mobile-first nature, ads must be designed for vertical (9:16) viewing to create an immersive experience.

In 2025, it will be essential to craft visually appealing creative that captures attention quickly. Introducing your brand within the first two seconds to generate thumb-stopping behavior.

Performance Metrics

Catalog Ad performance: Best Times of Day

As the work day winds down and people relax at home, evenings (6PM-8PM) deliver the highest ROAS at 4.2x.  

As a close second, mid-day (11AM-2PM) during lunch hours deliver a strong 3.8x ROAS.

Catalog Ad performance: Best Days of the Week

Weekends consistently outperform weekdays, with Sundays coming out on top.

While not peak days, Monday through Wednesday offer great opportunities for testing promotional offers and discounts to boost mid-week performance.

Catalog Ad Performance: Price Point

We found that items within the $50-200 range are the most optimal price range for catalog ads.

Products priced around $200-500 were a close second at just under 4x ROAS.

While there’s a large volume of catalog ads with items priced at <$25, it was the worst performing. You can segment these items out from your feed to prevent unnecessary spend pushed towards low AOV (average order value) products.

Key Takeways:

Higher price points need more social proof

Mid-range price points benefits most from comparison features

Lower price points require efficient targeting to justify ad spend

Premium items need longer attribution windows

Budget items need volume optimization

Seasonal Performance

Sales seasons are clear winning windows for DPA. Here are the top time-frames/seasons to be pushing your DPA:

Black Friday/Cyber Monday period

2-3 weeks before major holidays

First week of each month (coinciding with paydays)

Back-to-school season (July-September)

Post-Christmas (late December - early January)

During sales seasons, CTR for catalog ads increases significantly. For example, when ads mention a specific day, week, or month (indicating a sale), they perform about 79% better than ads that don't mention time-sensitive periods.

Sales seasons see a huge improvement in ROAS for catalog ads:

In the fashion/apparel vertical, November (a key sales month) showed the highest ROAS of 3.5 for catalog ads.

Overall, catalog ads have a 78% higher ROAS compared to regular image and video ads during peak seasons.

Cost Per Mille (CPM):

CPM for catalog ads tends to be slightly higher than regular ads but follows similar trends.

During sales seasons, the increased performance often justifies the slightly higher CPM.

Extra Savings:
Including savings and discounts in catalog ads during sales seasons can significantly boost performance:

Affordable brands see a 115% improvement in ROAS

Mid-end brands see a 73% improvement

High-end/Luxury brands see a 24% improvement

Video Catalog Ads

In 2024, Meta launched Product Level Video (PLV). It’s a massive unlock for brands looking to boost catalog ad performance.

Here’s why PLV (aka, video catalog ads) should be on every brands must-have list for 2025:

Higher engagement

Video ads receive 48% more views than static ads.

Improved conversion rates

Campaigns using Product Level Videos have seen up to a 48% increase in conversion rates compared to plain catalog ads.

Greater reach

Video content is prioritized by social media algorithms, leading to higher visibility.

Higher click-through rates (CTR)

Video ads have demonstrated up to 30% higher CTR at equivalent ad spend compared to static ads.

Increased adaptability

Video dynamic ads are highly adaptable based on real-time data, allowing for more personalized content delivery.

Emerging Trends for 2025 and Beyond

As we move into 2025 and beyond the catalog ad landscape is poised for exciting shifts. Here are seven key trends shaping the future of catalog ads:

AI-driven optimization and personalization 

AI algorithms are now capable of analyzing vast amounts of data to create highly personalized ads in real-time. By 2026, 80% of marketers are expected to use AI. This includes dynamic creative optimization (DCO) that instantly changes ads based on consumer preferences and behavior.

Video integration in catalog ads 

Video content is dominating catalog ad formats, with short-form video ads becoming increasingly prevalent. Soon brands everywhere will leverage product-level video assets directly in their catalogs ads.

Privacy-centric targeting strategies

With increasing privacy concerns, advertisers are shifting towards contextual advertising and first-party data usage. This trend is driving the development of new targeting methods that respect user privacy while maintaining ad effectiveness. Enriched catalog ads are well-positioned to adapt to these changes, as they rely more on product data and user behavior than personal information.

Shoppable video ads

Social commerce is becoming the dominant way to shop, with platforms like Snap, TikTok, and Pinterest integrating shoppable ads that allow users to purchase directly within the app. Enriched catalog ads are at the forefront of this trend, achieving a 36% higher CTR than traditional image and video ads.

Mobile-first approach

Over 63% of web traffic now comes from mobile devices. Advertisers are focusing on creating content that looks great on smaller screens, loads quickly, and is easy to use on mobile platforms. Enriched catalog ads are designed with this mobile-first approach in mind, contributing to their superior performance.

Integration of augmented reality (AR)

By 2026, AR is expected to play a huge role in retail advertising. Consumers will try on clothes virtually or place furniture in their living rooms before making a purchase, all via ads.

Key Takeaways and Action Steps

Catalog ads will surpass static ads & UGC

Dynamic Product Ads will continue to grow as a powerful force well into 2025, with increasing adoption rates and improved performance metrics across retail, apparel, home goods, and electronics.

Key Takeaway: Invest in catalog ads to stay competitive and maximize ROI.

Product Feeds are vital

The success of catalog ad campaigns heavily relies on well-managed, well-fed product feeds and strategically organized campaigns that align with customer behavior.

Key Takeaway: Better images, better data, and feed management tools are your new best friend.

Test New Channels

Expanding into new platforms to test your catalog ads can unlock new audience segments and improve overall campaign effectiveness.

Key Takeaway: Start testing catalog ads on Snap, TikTok, and Pinterest

Optimize your campaigns based on engagement

Continuously monitoring and adjusting campaigns based on user engagement metrics leads to improved performance and better resource allocation.

Key Takeaway: Let AI do it’s job, run fewer ad sets, constantly test new creative, and always increase personalization where you can.

Utilize Video

Video catalog ads often outperform static ads in terms of engagement, conversion rates, and overall effectiveness

Key Takeaway: Incorporate PLV into your catalog ad strategy to boost engagement and conversion rates.

Enrichment Wins

Enriched catalogs are the new forefront for catalog ads. Enriched catalogs outperforms plain DPA in terms of engagement, conversion rates, and overall effectiveness.

Key Takeaway: Tools like Marpipe let you scale and test dynamic ad creative across your whole catalog.