To set up dynamic ads, you need a catalog. Catalog is a place where you can upload your inventory so you can use it in different ways in the Facebook family of apps.
Once you have your catalog setup, you can connect your products to different places in Facebook to power product experiences:
Dynamic Ads - Feature products in different formats to be served dynamically as personalized ads.
Marketplace - Distribute products in Marketplace.
Collection Ads — Use them in immersive formats.
Facebook Shops - Send products to sell on Facebook Shops where Businesses without storefronts can easily create one from Catalog.
Instagram Shopping - Feature in Instagram Shopping experiences, such as product tags on Instagram and soon on Instagram Shops.
WhatsApp & Messenger - Feature in conversational commerce in WhatsApp & Messenger.
To set up a catalog, use this procedure as your guide:
Set microdata tags for catalog (Optional)
Set Metadata Tags in a Feed File (Optional)
Set Up Country and Language Feeds in the API (Optional)