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Oct 03 2025

Feed-Powered Dynamic Overlays for Meta Ads

By Mary Berger

Meta has introduced an update to a feature for Advantage+ Catalog ads: dynamic overlays, similar to Google Shopping's automatic badging. Dynamic Overlays allow advertisers to highlight discounts, price drops, and sale prices directly on their ads in the form of eye-catching sticker-style labels.

Meta Dynamic Overlays

Advertisers can now choose to let Meta's AI automatically determine the most effective overlay, rather than manually selecting one. This harnesses AI to optimize catalog campaigns for better results, while still offering customization options for the overlays' appearance (e.g., shape, position, font). This approach mirrors Google's long-standing use of badges and annotations, which leverages internal data to display the most relevant option to individual users.

Meta Dynamic Overlay Display Options

To maximize the number of overlays displayed when enabling automatic dynamic overlays, ensure the following information is present in your Meta feed:

  • Price and Sale Price: Include both the full price and the discounted sale price (when applicable). This enables the display of strikethrough prices and percentage-off overlays.
  • Free Shipping: To highlight free shipping, include the product-level shipping cost in your feed and set it to 0.0 (if applicable).

You can still choose to customize the dynamic overlays yourself for by selecting "Manually set up dynamic overlays" (see screenshot above). Here are the customizable options:

  • Banner shape : Show information in a rectangle, pill, circle or triangle over each product in the ad
  • Banner position : Choose where the information appears over each product in the ad
  • Banner color : Choose a banner color (can ensure you keep this on brand)
  • Text font : Choose a font
  • Text color : Choose a text color
  • Opacity : Choose whether the shape is solid or transparent. This option is available when you choose Shape.

In summary, Meta allows you to turn on Dynamic Overlays for your ads and leverages the data in your product feed along with signals it has on the user, etc. to determine which (if any) overlay to show.



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