Facebook Marketplace is home to over 1 billion monthly users and 250 million amateur sellers, making it one of the largest online selling platforms. For advertisers, this creates a cost-effective opportunity to acquire customers through Facebook Marketplace Ads. 

The advertising side of Facebook Marketplace offers smart placement, advanced targeting, and flexible budgeting. Advertisers can achieve increased reach, targeted advertising, and enhanced visibility. 

Kickstarting your ads journey on the platform is simple: 

  • Access Ads manager on Facebook 
  • Choose a campaign objective such as awareness, traffic or engagement 
  • Define your audience 
  • Set your budget and schedule 
  • Pick an ad placement 
  • Create your ad creative 

Whether you want to buy something on Facebook Marketplace or explore new ways to sell on Facebook, these ads are simple to design and launch. 

Let’s get started. 

What are Facebook Marketplace ads? 

Facebook Marketplace Ads, as the name suggests ads are paid advertisements that appear on the Facebook Marketplace. These are different from organic listings that are usually specific to local areas and rely on user driven visibility. 

Marketplace ads allow advertisers to extend their reach, targeting a broader audience with purchase intent by leveraging Meta’s targeting options. Meta Ads Manager creates these ads and shows them to users actively browsing for products.

80% of Marketplace users visit the platform specifically to find products or services to buy–so targeting them in essence is reaching them when they have a strong purchase intent i.e. they are already “primed to buy”. 

To distinguish Marketplace ads from organic listings, you will find a “Sponsored” label on it as illustrated in the image below. 

an example of a facebook marketplace ad

Are Facebook Marketplace Ads the same as Boosted Listings? 

No. Facebook Marketplace also allows individual users (not brands) to pay to run ads for their listings. Boosting a Marketplace listing converts it into a paid ad and increases its visibility across Meta’s properties (Facebook, Instagram, WhatsApp, Threads, and Messenger).

While a Facebook Marketplace Ad is a dedicated ad campaign with detailed targeting and advanced campaign setup.

Boosting is a quick method to get more eyes on a listing, while an ad campaign uses tools like Meta Ads manager and provides precise control over your audience and campaign goals.

Ads on Facebook Marketplace promote products from your full catalog, while boosted listings only promote items listed on Marketplace.

An example of a boosted listing. A boosted listing will have the label “Sponsored by seller” on it.

an example of a boosted listing
Source: Instapage

How to Create Facebook Marketplace Ads? 

Creating Facebook Marketplace Ads is fairly simple and straightforward. Follow the steps below to start: 

Step 1: Create a Meta Business Manager Account 

*You can directly create and run Meta ads from your own personal account by accessing the ads manager too.

Step 1.1: Create a Facebook Page (needed)

Who needs a Meta Business Manager account and who does not? 

Needs✅
Businesses with a team, agencies, freelancers, and businesses running multiple pages/ad accounts, if you need advanced tools (pixels, conversion API, catalogs, etc.). 

Does not need❌
Individuals running ads for themselves, small businesses, or solopreneurs with no additional assets, and people testing ads. 
P.S. – If you want to connect or upload your product catalog, you need a Meta Business Manager account. 

Step 2: Access Ads Manager 

Step 3: Click on “Create a new campaign”

Step 4: Select your ad objective. Choose “Sales” or “Traffic” as these align the best with the shopping mindset of Marketplace users. 

Step 5: If you select “Traffic” as your goal, you can choose a campaign setup – “Recommended settings” or “Manual traffic campaign”.

If you select “Sales,” your campaign defaults to Advantage+ sales campaign features. However, manual options are still available. 

Since most Marketplace users have a high purchase intent, we suggest selecting the “Recommended settings” options. This is because this option uses Meta AI to optimize your budget automatically, uses Advantage+ audiences for targeting, Advantage+ placements for placements, and more. 

Once you have collected enough data and understand which audiences and placements have high conversion rates, you can test “Manual campaigns”. 

To accommodate the length of this blog, we will only be exploring the “Recommended settings” option. 

Step 6: On the next page, you can view the recommended settings and if you want to change them it will convert the campaign to manual. Beyond this, you will have the option to turn on Advantage+ budget, A/B test, add special categories and add the campaign name. 

Step 7: Once you click next, you will see another set of options to configure. 

Choose your conversion goals, such as conversion location, performance goal, cost per result goal, and value rules. 

Then you have the budget & schedule section–which is self-explanatory. 

Moving on, you have an Audience Controls section, which limits who can see your ads. 

As you scroll down, you will see the Advantage+ audiences section. Remember, by default, this is already turned on. Here, you do have the option of turning on Audience Suggestions–this automatically shows your ads to users more likely to respond. Why do you need this? To precisely target your audience via age, gender, interests, demographics, and behaviors. 

Lastly, you have the Advantage+ placements which is already pre-set for you but you can edit it if need be. 

*Important: If you have selected “Traffic” as your goal and opted for the manual campaign set up then you can select “Facebook Marketplace” as a standalone placement but it will also appear on the Facebook feed. If you have selected “Sales,” this will not be possible–Meta will place your ads beyond Marketplace, which is not something you can control. 

Step 8: On the next page, you can select the Facebook page or Instagram account to associate with your ads.

Then you have the ad setup where you can select the creative source and the format of the ad. After this, select the destination URL, which could be your website or product page. The rest of the setup involves adding your ad creatives and setting up tracking via Facebook Pixel. 

Pro Tip: Track micro-conversions (Add to Cart, Checkout, etc.) with Meta Pixel and pair it with Conversions API. This gives Meta more signals to optimize and keeps data accurate even with cookie or iOS restrictions. 

Step 9: Hit publish and wait for your ads to be reviewed. Reviewers check most ads within 24 hours.

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Benefits of Facebook Marketplace Ads 

benefits of facebook marketplace ads

Facebook Marketplace Ads offer a variety of benefits. Let’s explore each one of them in this section. 

1. Targeting High Purchase Intent Audience 

As discussed earlier, Marketplace users are actively looking to shop i.e. they are at the bottom of the funnel (BOFU). This means targeting them increases the chances of a conversion focused campaign more successful. Beyond this, with Meta’s advanced targeting settings you can hyper target the exact type of audience you want based on demographics, age, gender, interests, etc. 

2. Massive Reach and Exposure 

With over 1 billion monthly users, Marketplace ads tap into a massive and diverse audience. This type of reach helps businesses scale their efforts effectively. And if you select placements beyond Marketplace, you can gain access to the wider Meta ecosystem (Facebook, Instagram, and Messenger)—reaching billions of users. 

3. Localized Targeting 

Marketplace ads can target potential customers based on location, which is especially helpful for local businesses and sellers. You can fine-tune this further by using radius targeting when setting up your ads. 

4. Automation and AI Optimization

Most of Meta’s ad tools are AI powered. This includes automated audience targeting, dynamic creative testing, placements, budget allocation and more (yes, this is all part of Advantage+ campaigns). Marketplace ads benefit from this automation, reducing manual effort while increasing efficiency and ROI. 

5. Personalized Product Recommendations

If you have scrolled through Marketplace, you will notice that the ads you see match the category you are browsing. Meta’s system prioritizes showing users ads related to that category. So, for example, if someone is browsing Pet products, the Marketplace ads shown would encompass the same category. 

If a user is in the “Browse all” section, the ads reflect their personal activity, interests, behavior across Meta, and ad targeting settings.

Users will see a mix of ads from various categories, personalized to them rather than random.

6. Retargeting Opportunities

With Marketplace ads, you can use Custom Audiences to re-engage people who viewed a product, messaged about it, or added it to their cart but didn’t purchase. Beyond retargeting, you can now rely on Advantage+ Audiences, where Meta uses your Custom Audience as a signal and then automatically expands to find new shoppers who behave like your most engaged Marketplace buyers. 

Read More: Advanced Matching in Facebook Pixel

Tips for Running Effective Facebook Marketplace Ads 

Advertisers can employ several effective tips to run effective Facebook Marketplace Ads.

1. Using High-Quality Images

Ads that mimic organic listings fall in line with the expectations of Marketplace users who expect a familiar scrollable experience. Use clear, well-lit product images and follow Meta’s guidelines for ad creatives. Show your product in real-world use by using lifestyle photos. Avoid stock images and aim for visuals that fit in with other Marketplace listings while maintaining prominence. 

2. Targeting the Right Audience

If you are running a manual campaign (only possible for certain campaign objectives) you can control where your ads appear. This is especially beneficial for local or small businesses that want to reach buyers nearby. 

However, if you are using Advantage+ campaigns–ensure you are feeding Meta AI with the right conversion signals. Remember, Meta’s automation relies heavily on high quality data. The more accurate and consistent your event tracking is (via Meta Pixel, Conversion APIs, etc), the better the algorithm becomes at identifying your ideal customers. 

When setting up your campaign, whether manual or automated, ensure you go through each expanded audience targeting setting. Research each element with granularity to expect better results. 

3. Monitoring Ad Performance

Track key metrics in Ads Manager like CTR, CPC, CPM, conversions, and placement breakdowns. For example, CTR tells you if your ad creative is compelling enough for Marketplace shoppers to click. Low CTR can also indicate ad fatigue–in that cas,e it requires a refresh. 

4. Seasonal Demand 

When running Facebook Marketplace Ads, keep an eye on seasonal demand and align your campaigns with the best selling items on Facebook Marketplace. This ensures your ads are relevant and capture buyers when interest is highest. For example, run ad campaigns on holiday decor in fall or patio furniture in spring to maximize engagement and sales. 

5. A/B Testing

A/B testing certain elements will give you a glimpse into what’s working and what’s not. You can A/B test ad creatives, placements, audiences or custom while setting up your campaign. Meta offers the Experiments tool which allows you to try different text, settings or images to improve ad performance. 

Test one variable at a time, for example, same audience and copy but different image. Let the test run for at least 7 to 10 days to account for the learning phase. Ensure you have gathered enough reliable data before you start implementing changes. 

Best Practices for Facebook Marketplace Ads 

To yield the best possible results from Ads on Facebook Marketplace, implement the following best practices. 

1. Using Video Content

Video ads can prove to be more engaging than static photos. Some benefits include higher engagement rates, better CTRs, and conversions. Keep the video short and to the point, make it visually appealing, and add a call to action. You can also create a video from your images, go to Ad creative > create video in Ads manager. 

Some users on Reddit have noted that images work better for them. Video content can sometimes be more expensive in terms of production or ad budget. Some have noted that user-generated content-type videos pull in more conversions. 

Ultimately, the best way to decide between photos or videos is to test both and see what performs better. 

2. Local Selling Strategies

Set up radius targeting around your store or service area. Marketplace is an excellent avenue for local buyers. Ensure your ads highlight nearby availability and fast delivery or pickup options.

3. High Quality Creatives & Copy 

Design high quality visuals using professional tools like Canva. Write a compelling, headline, detailed description, and a clear CTA that matches ad objectives. 

4. Strategic Budgeting

Use campaign and ad set budget optimization to allocate funds to the most effective sets. Today, this means choosing between setting budgets at the ad set level or using Advantage Campaign Budget, which optimizes spending across ad sets automatically.

If you are running Advantage+ campaigns, budget optimization is fully automated; Meta decides how much to push into Marketplace versus other placements based on performance signals. 

Set up a budget schedule to increase the budget on certain days or times. 

5. Connect Meta Pixel + Conversions API

Ensure you set up the Meta Pixel and Conversions API (CAPI) together for accurate data and better campaign performance. The Meta Pixel captures browser side events like page view, add to cart and purchases. But since it relies on cookies and browser permissions, iOS restrictions, ad blockers, or privacy settings can cause data loss.

The CAPI sends the same events directly from your server to Meta, making tracking more reliable and less affected by restrictions. CAPI has to be set up by the Events Manager. 

With this, you can have improved retargeting and more accurate reporting of results.

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6. Run Advantage+ Catalog Campaigns 

Connect your product catalog to run Advantage+ Catalog campaigns that show shoppers items they viewed or related products. So for example, if a user is browsing on Marketplace they will see highly personalized ads like the exact sofa they browsed or matching decor. This boosts relevance and increases the chances of a purchase. 

Common Mistakes to Avoid 

  • Mistaking Facebook Marketplace Ads with Boosted listings. There is a difference between the two. 
  • Running ads with audiences that are too broad and too narrow. Ads Manager offers multiple settings to help you reach the exact audience you intend to. Refine your targeting settings with radius targeting, location, behavior, interests, audience controls, custom audiences, and more. Opt for Advantage+ audiences in case you want Meta AI to show your ads to the best possible potential customers. 
  • Avoid using low-quality images, generic designs, or copies that lack a clear CTA. Also, avoid overloading ad images with text. 
  • Choosing the wrong campaign objective. For Marketplace Ads, the two campaign objectives that make the most sense are Sales or Traffic. Other objectives may not be suited for the type of customers that visit the Marketplace. 
  • Failing to test multiple creatives or audiences (no A/B testing) and making changes without data.
  • Not tracking conversions or missing pixel setup. This data can help retarget customers and also measure the effectiveness of your campaign. 
  • Ignoring seasonality demand. Marketplace demand is highly seasonal, so align your ads with the right categories at the right time of year, and you’ll see stronger engagement and higher conversions.
  • Not optimizing your campaign. Regularly optimize your campaign based on data-driven insight. Refresh ad creatives to avoid ad fatigue. 

Conclusion

Running Facebook Marketplace Ads can be a lucrative opportunity if undertaken correctly. 

Let’s recap some of the important key takeaways from this blog: 

Key Takeaways:

  • Understand the difference between Facebook Marketplace Ads and boosted listings. 
  • Choose “Sales” or “Traffic” as your campaign objectives for the best results. 
  • You have the option of running Advantage+ campaigns, manual campaigns or a mix of both depending on your choice. 
  • Seasonal demand drives the Marketplace.
  • Facebook Marketplace Ads appear on your Facebook feed too. And if you choose Advantage+ placements they will appear across Meta’s wide network. 
  • Start with high-quality visuals for your ads. Refresh creatives regularly to avoid ad fatigue.
  • Utilize precise audience targeting, especially radius targeting, for better results.
  • Use Meta Pixel and CAPI for conversion tracking and retargeting.
  • Monitor and adjust your ad performance regularly.
  • Incorporate video content to enhance engagement.
  • Explore advanced techniques like retargeting. 
  • Track CTR, CPC, CPM, conversions, and frequency.
  • Use A/B testing and Meta Experiments to refine targeting, creatives, and budgets.

FAQs

Do Facebook ads work for Marketplace?

Yes, they do. Facebook Marketplace Ads reach users with strong purchase intent, making them effective for driving clicks, conversions, and sales.

How to advertise in Facebook Marketplace?

Go to Meta Ads Manager > create a campaign (Sales or Traffic) > set your audience, budget, and placements. Advantage+ placements will include Marketplace, or you can select it manually with certain objectives.

Alternatively, if you want to boost your listings, then you will find the “Boost” option within the listing. 

What should I do if my Facebook Marketplace ads are not getting approved? 

Review Facebook’s ad policies and ensure your ads comply with all guidelines. Adjust your content and resubmit for approval.

How can I leverage Facebook Marketplace ads for seasonal promotions? 

Create targeted campaigns around seasonal events, using relevant themes and offers to attract more customers during peak times. 

What are the best practices for creating compelling ad visuals? 

Use high-resolution images, ensure clear branding, avoid adding too much text, and incorporate engaging elements like videos to capture attention. Check Facebook’s official ad creative specifications for each type of ad for more details.

How do I measure the success of my Facebook Marketplace ad campaign?

In Ads Manager, click on “Ads Reporting”. Track key metrics such as click-through rates, conversion rates, and return on ad spend to evaluate campaign performance.

Author

Sanjna is the Content Marketing Manager here at AdNabu with over 4 years experience in the SaaS industry. She has always had a passion for writing a close second to her love of spicy food! She loves to explore the knitty gritties of SEO too!

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