Digital advertising is based on attention. Every e-commerce brand devotes countless hours building nice creatives, designing new videos, and experimenting with new formats to get their customers’ attention. Meanwhile, corporations are focused on innovation in advertising, but one of the most underappreciated formats drives billions of dollars in revenue every year. That format is catalog ads.
Meta generates over $260 billion in revenue, and a staggering 40 percent comes from catalog ads alone. These ads are simple, automated, and often ignored by marketers who prefer to focus on creative-driven campaigns. But here’s the surprising truth, even when they look plain, catalog ads outperform the polished creatives that dominate your e-commerce strategy.
For most brands, nearly 70 percent of the e-commerce advertising budget flows directly into catalog ads. Whether you realize it or not, these ads form the backbone of your campaigns. The irony is that they look basic, sometimes even ugly, yet they outperform the very campaigns designed to dazzle your audience. This overlooked format is not only shaping Meta’s empire but also quietly shaping your revenue potential.
The Hidden Opportunity
If you compare performance, the difference is striking. Catalog ads consistently hit an average of 6.86 ROAS. In contrast, image ads and UGC ads often struggle to cross a 4.0 ROAS. Numbers don’t lie, and they clearly point to catalog ads as the silent powerhouse of e-commerce advertising.
The real question is not whether to run catalog ads, but how to optimize them. Most brands run them without a second thought, leaving creative quality on autopilot. But what if these catalog ads didn’t just run automatically, what if they looked professional, engaging, and updated dynamically with relevant details like pricing and promotions
Why E-commerce Advertising Depends on Catalog Ads
E-commerce advertising is about scale. While polished videos and images may engage customers, they cannot cover thousands of products at once. Catalog ads, on the other hand, let businesses advertise entire inventories across multiple placements automatically. This scalability makes them the foundation of any serious digital advertising strategy.
However, most businesses settle for generic templates that underdeliver on customer experience. Customers often scroll past catalog ads that look uninspired or outdated. The opportunity lies in transforming these ads into professional campaigns that not only scale but also elevate brand perception.
Transforming Ads with AI and Dynamic Design
This is where innovation steps in. Platforms like Marpipe give businesses the ability to enhance catalog ads with professional designs, dynamic pricing, and AI-generated copy. Instead of bland templates, each product is shown with updated and engaging creatives that resonate with customers.
The best part is automation. Businesses no longer need to manually update thousands of SKUs. Dynamic catalogs refresh automatically, keeping your campaigns aligned with inventory, price changes, and promotions. This ensures consistency, while also driving stronger ad performance across the board.
Why Optimizing Catalog Ads Matters More Than Ever
Catalog ads are not a small part of Meta’s ad machine, they represent almost half of its revenue. If you are already spending the majority of your budget here, the worst mistake is to leave these ads unoptimized. Instead of letting 40 percent of Meta’s revenue stream underperform for you, the smarter choice is to unlock its potential with tools designed to maximize returns.
Marpipe even provides a free AI agent that sends performance insights directly to Slack. This means you don’t just upgrade your visuals, you also gain real-time intelligence on which ads work best and why. With the right strategy, they can become your most profitable channel.
The Bigger Picture for Brands
In the race for customer attention, many brands underestimate the simplest tools. Catalog ads prove that performance often beats perfection. While creative-driven campaigns still matter, the core of e-commerce advertising success rests in optimizing the formats that scale automatically and generate consistent results.
The actual advantage comes from being the first brand in their category to recognize this opportunity. Brands that begin to invest in optimizing them today will be positioned to drive better ROAS, achieve greater engagement, and spend their budgets more efficiently in the marketplace tomorrow (or in the near future).
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