What are Meta Ads and How to Set Them Up 2026?

Meta ads have become the go-to solution for most e-commerce merchants whenever it comes to promoting their products and business across Meta platforms. These ads enable you to tap into a massive audience of over 3.5 billion daily active users across all Meta platforms, reaching potential customers where they already spend their time. 

With Meta ads, you can drive both traffic and sales for your e-commerce store with the help of targeted campaigns. 

In short, these ads can help you build brand awareness, attract the right audience, and turn engagement into conversions, all within one powerful advertising ecosystem.

But now the real question is, how do you actually run Meta Ads? Well, if you don’t know the answer to this question, worry not. This guide will help you. Through it, we will be discussing: 

1. What Meta ads are 
2. The different types of Meta ads 
3. How to set them up 
4. The benefits of running these ads (e.g., vast audience reach, diverse ad formats, etc.) 
5. Best practices for creating and running Meta ads
6. Some Meta ad examples 

So, are you ready? Let’s quickly dive into the Metaverse of Meta ads. 

What are Meta Ads? 

Meta Ads are paid advertisements that run across different Meta platforms such as Facebook, Instagram, WhatsApp, Messenger, and Threads. They enable you to promote your products, services, or content by reaching relevant users either through automated or manual audience targeting.

These ads operate through Meta’s ad auction system, which basically determines which ad to show to any particular user at any given moment. Advertisers compete in these auctions based on factors such as bid amount, estimated action rates, and ad quality, all of which, combined, help ensure that whichever ad wins, it provides the maximum value to both users (who view the ad) and the business (which runs the ad).

Once an ad wins the auction, Meta delivers it across eligible placements, either according to your manually chosen settings or through Advantage+ Placements, which automatically selects the best placements. From there, Meta’s delivery system continuously learns and optimizes performance, improving your campaign results over time.

Types of Meta Ads 

Currently, Meta allows you to create ads in four different formats. These include:  

1. Image: These ads use a single image and an optional footer and are helpful for promoting products, services, or brands.

Image ads work the best for driving awareness, delivering simple messages, and promoting a single offer across different Meta placements. 

2. Video: Video ads feature a single video that allows you to promote your product, service, or brand to your target audience. These ads are helpful in those cases where you need to showcase product features, demonstrate how something works, or share your brand story in a visually appealing manner. 
3. Carousel: Carousel ads allow you to showcase two or more images and videos within a single Meta ad. Moreover, each of these images and videos has its own headlines, descriptions, and CTAs. 

Meta carousel ads are best used for promoting multiple products or services, sharing multiple features (or highlights) of a single product, explaining processes, etc. 

Bonus: Read our blog on Facebook Carousel ads.

4. Collection: Meta Collection ads feature a main cover image or video, which is supported by three or more smaller product images underneath, in a grid-like layout. When somebody clicks on the cover image or video of a Meta Collection ad, they reach a fast-loading Instant Experience. Whereas, if somebody clicks on the smaller product images underneath, they reach the website detail page. 

These ads are most useful when you want to drive product discovery, market items from your Meta catalog, or enable customers to have seamless browsing experiences on their mobile devices. 

How to Create Meta Ads? 

Before we dive into the step-by-step process to create Meta ads, please note that there are certain prerequisites that you must meet. 

Prerequisites for Meta Ads

1. You should have a Meta Business Suite account. 
2. Ensure your Ads Manager is properly set up and connected to your Facebook Page or Instagram Business account.
3. Add a valid payment method (such as a credit card or PayPal) to your Meta account so that you can pay for your advertising spend. 
4. Install and set up a Meta Pixel on your website (optional but recommended). 
5. Knowledge of and compliance with Meta’s Commerce Policies.

Step-by-Step Process to Create Meta Ads

1. In your Ads Manager account, click on ‘Campaigns’ under ‘Account Overview’ from the left-hand side menu. 

2. Click on ‘+ Create.’ 

3. Then, under ‘Create New Campaign,’ you will have to select the buying type from ‘Auction’ and ‘Reservation.’ 

Pro tip: You can read this Meta help article to understand which of the two (Auction or Reservation) will be beneficial for your campaign.

4. Then you will have to select an advertising objective. The available options include: 

• Awareness 
• Traffic
• Engagement
• Leads
• App promotion 
• Sales

For reference purposes, we will go ahead with ‘Sales’ and create a Meta Advantage+ Sales Campaign. 

Note: Meta recently updated the campaign flow for the sales objective. Earlier, after selecting the objective, you could choose between manual and Advantage+ campaign setups.  But now, by default, all campaigns are Advantage+.

5. You will then reach the campaign stage. 
6. Add your campaign’s name and review its details, such as objective, etc., that were set earlier. 
7. Enable ‘Advantage+ catalog’ if you want to promote products from your e-commerce store, i.e., run Advantage+ catalog ads. 
8. Then configure your Budget settings. This means that you will have to select from ‘Campaign’ or ‘Ad set’ budget options. Moreover, you will also need to decide your campaign bid strategy and configure budget scheduling if required. 

Note: By default, Advantage+ Campaign Budget will be enabled, as earlier we chose the ‘Sales’ advertising objective. Moreover, you can’t turn this setting off.

9. Enable A/B testing if required. 
10. Review Audience segment reporting settings and also declare if your ads belong to any special category (financial products and services, housing, etc.) 
11. Click on Next, which will take you to the ad set level settings. 
12. Add a name for the ad set. 
13. Choose a conversion location from the available options: 

• Website 
• App 
• Website and app 
• Message destinations 
• Calls 
• Website and in-store 
• Website and calls

We will select ‘Website’ as a reference. 

14. Also, select a performance goal. 
15. Then select a dataset, which basically means your Meta pixel (earlier known as Facebook pixel).
16. Set up a conversion event. 
17. Create value rules if required. 
18. Configure budget and schedule settings. 
19. Set up Audiences and Placements. 

Important Note: When we say set up Audiences and Placements, we mean configuring the additional settings that Meta provides for both. For example, for Audiences, you have controls such as minimum age, limiting audiences to a particular language, etc.  When applied, these inputs guide Meta to reach users who better match your preferences. However, as mentioned earlier in this blog, many important settings, such as audiences, placements, and budget, are automated in Advantage+ Sales campaigns. These are powered by products and solutions from Meta’s Advantage+ suite, such as Advantage+ Audience, Advantage+ Placements, etc. These solutions utilize machine learning to optimize performance and deliver the best possible results for your campaign.

20. Click on ‘Next’ to proceed toward the ad level settings. 
21. Add a name for your ad. 
22. Choose if this ad is a ‘Partnership ad.’ 
23. In the ‘Identity’ section, select a relevant Facebook page or Instagram account to represent your business. 
24. Then, in ‘Ad Setup’, you must decide whether to create an ad, use existing content, or use a creative hub mockup. We will proceed with creating a new ad, and for its media setup, we will have to select one of the following:

• Want to manually upload media, or;
• Allow Meta’s systems to automatically use relevant product information from your catalog (for Advantage+ Catalog ads)

A catalog basically holds all the information related to the products you want to advertise across both Facebook and Instagram. And to add products to your catalog, you can use any of the following methods: 1. Do it manually in Commerce Manager  2. Use Instagram or Facebook product feeds  3. Employ a Meta Pixel  4. Use Partner Integration  5. Use the Catalog Batch API  6. Or use automatic website crawling, which is currently limited to only some eligible businesses.

Beyond that, you must also decide the format of your ad from the available options, which include: 

• Flexible 
• Single image or video 
• Carousel 
• Collection 

25. Select a Destination.
26. Set up your Ad Creative.
27. Then, in the languages section, you must add your own translations or allow Meta to automatically translate your ad and its content to reach people in more languages. 
28. Enable conversion tracking and choose the events to track with Meta Pixel. 
29. Click on ‘Publish’ your ad. 

That’s it. After you create your campaign, Meta will review it to ensure all settings comply with its policies. Most ads are reviewed within 24 hours, though in some cases, the process may take longer. Once approved, your ad will go live and begin delivering to your target audience.

Benefits of Running Meta Ads

Now we will discuss why you should run Meta Ads. 

Massive Reach Across Platforms

As discussed earlier, more than 3.5 billion users actively use Meta platforms on a daily basis. By running ads across these platforms, you can easily reach a vast global audience across various platforms (e.g., Facebook, Instagram, etc.). 

AI-Powered Automation with Meta Advantage+ 

While creating Meta ads, you can also use Meta’s Advantage+ product suite for eligible advertising objectives. This suite offers end-to-end automation for various campaign settings, including audience targeting, placements, budgeting, etc. 

Using these products and solutions, you allow Meta’s smart machine learning systems to analyze your performance data, optimize ad delivery, and help you achieve better performance results. 

Diverse Ad Formats 

Meta supports a variety of ad formats (e.g., single images, videos, carousels, etc.) This versatility helps ensure that, regardless of your marketing goal, you can easily create an ad that perfectly aligns with your campaign objective.

For example, if you want to boost product discovery, you can create single-image ads. On the other hand, if you want to build customer trust, you can share customer testimonials through video ads. 

Full-Funnel Capabilities 

Meta ads are designed to support the entire marketing funnel. You can create campaigns for different advertising objectives such as awareness, engagement, leads, sales, etc. So, whether your audience is at the top or bottom of your marketing funnel, Meta ads can help you reach them effectively and drive meaningful conversions. 

Cost-Effective

Meta ads are known to be more cost-effective than ads on other advertising platforms. 

For example, according to recent statistics, the average cost per click on Facebook across all industries is $1.72. Whereas for Google Ads, the average CPC is $2.69 for Search ads. This highlights that using Meta ads, you can reach billions of users and drive more engagement without spending more than you would on Google. 

Best Practices for Creating and Running Meta Ads 

Here are some best practices you should use to get the most out of your Meta ads: 

Install a Meta Pixel on your Site

Using the conversion tracking data from the Meta Pixel, you can measure the performance of your ads more accurately. You can understand which ads are driving important actions (such as add to cart, purchases, etc.) and how users interact with your website after viewing your ads. 

Such insights can prove to be valuable for optimizing your ad creatives, targeting, etc. 

Maintain a High Campaign Score   

While creating your campaign and ads, you will see a Campaign score at the top right corner. It is on a 0-100 scale and denotes how well optimized your campaign is and how closely you are following Meta’s recommendations.  

Try to keep it as high as possible, as that also improves the likelihood of your ads performing well. 

Follow Meta’s Ad Specs Strictly 

Meta has specific ad specifications in place for the optimal display of ads across various placements and devices within its ecosystem. 

For example, if you want to create an image ad for the Facebook Marketplace placement, then you must ensure that: 

• The file is in JPG or PNG format 
• The resolution of the image is at least 1080 x 1080 pixels.
• Primary text should be less than or equal to 125 characters. 

Ensure that you follow these guidelines properly. This will help ensure that your ads can appear across your desired placements and are engaging to users. 

Bonus: Read our article on Facebook ad specs.

Avoid Frequent Edits to Ads 

Making significant changes to your ads on a frequent basis will keep resetting their learning period, resulting in unstable performance and a higher cost per result. 

Instead, always allow your ads to run for 2-3 months. Based on their performance data, identify the areas of optimization and then make all the necessary adjustments in one go. This will ensure that even if the learning period resets, it happens only once. 

Run A/B Tests Regularly 

Meta allows you to run A/B tests and compare two versions of your ads by changing variables such as text, images, etc. 

Leverage these tests to understand what resonates the best with your target audience. Based on those insights, optimize your ads and boost their RoAS. 

Also read:  1. How to Structure Facebook Ad Campaigns for Maximum ROI 2. How to Optimize Facebook Ads: 30+ Expert Tips and Strategies

Bonus: Meta Ads Examples 

Let’s now explore some real examples of Meta Ads and analyze what makes them effective.

Instagram Image Ad 

First, we have this “Lalueur products” image ad that appears across Instagram stories. 

Here are some key features that make this ad stand out: 

1. It uses a high-quality image, which immediately captures a user’s attention and highlights the product’s effect on skin. This makes it visually appealing. 
2. It features an ad in the 9:16 ratio, which aligns with Meta’s guidelines. 
3. The top and bottom of the image ad are free of text, logos, etc., which ensures that there isn’t any overlapping of elements.
4. It includes a clear CTA: “Shop now.”

Threads Feed Video Ad 

Next, we have this video ad by The Perfect Jean, appearing across Meta’s new Threads platform.

Here are some points that make this video ad stand out: 

1. The storytelling approach in the video allows users to connect with the brand (The Perfect Jean) on an emotional level. It uses a simple and sweet father-daughter moment to create authenticity. 
2. The ad copy uses humor and confidence together, which makes it both memorable and relatable. 
3. The product (in this case, jeans) has been demonstrated in use, which further reinforces its comfort, fit, and other features in a real setting. 
4. It has a clear CTA. 
5. “30K+ 5-Star reviews” adds solid social proof to the ad.

Instagram Carousel Ad

We will now be analyzing this carousel ad from the ‘Chamber of Pastel’ brand, which appears across the Instagram feed. Some of its standout features include: 

• It has a total of four cards, which aligns with Meta’s requirement of a minimum of 2 and a maximum of 10 cards. 
• All the images are in a 1:1 ratio. 
• The brand has promoted multiple products via this ad. 
• The “Learn More” CTA directs users straight to the sale section, making the buying journey quick and seamless.

Pro tip: To explore more Meta ad examples, we recommend that you check out the Meta Ads Library.

Conclusion and Key Takeaways

Meta Ads have become a powerful tool for eCommerce merchants to promote products, reach the right audience, and drive measurable growth across Meta platforms.

The key takeaways from this blog include:

• Meta Ads are paid promotional ads that run across different Meta platforms, such as Facebook, Instagram, etc. Using these ads, you can market your products, services, or brand to your target audience. 
• These ads operate through Meta’s auction system, which uses machine learning to optimize delivery and maximize results. 
• You can choose from four main ad formats: image, video, carousel, and collection. Each of them caters to different marketing objectives.
• Setting up Meta Ads requires a Business Suite account, access to Ads Manager, and a valid payment method. Installing Meta Pixel is optional but highly recommended for tracking and optimization. 
• You can easily create these ads from your Meta Ads Manager account. Just click on “+ Create”, select your advertising objective, and configure all other settings at the campaign, ad set, and ad levels. 
• Some benefits of creating and running Meta Ads include wide reach, access to Meta Advantage+ solutions, and cost-efficiency. 
• While running Meta ads, ensure that you follow certain best practices, such as not making frequent edits to ads in their learning phase, running A/B tests regularly, and maintaining a high campaign score. These will help ensure that you get the best results from your advertising efforts. 

Good luck. 

FAQs

1. What is the learning phase in Meta Ads, and how does it work?

The learning phase is when Meta’s system studies how to best deliver and optimize your ads for results. It usually ends after about 50 results within a week of your ad set’s last significant edit. Avoid frequent edits or budget changes during this stage to help the system stabilize delivery and improve overall ad performance.

2. What are some common mistakes to avoid with Meta Ads?

Common mistakes include using misleading content, violating ad policies, and skipping conversion tracking. Many advertisers also target audiences too broadly, ignore A/B testing, or fail to refresh ad creatives regularly, which can lead to creative fatigue and lower engagement.

3. What is Meta Pixel, and why is it important?

Meta Pixel is a small piece of code you add to your website to track user actions. It helps measure ad performance, retarget visitors, and optimize campaigns based on actual conversion and behavioral data.

4. What are the different types of bid strategies in Meta Ads?

Meta offers three bid strategy types: spend-based, goal-based, and manual. Spend-based focuses on using your full budget to get the highest number or value of results possible, such as maximizing purchases or event sign-ups.

Goal-based bidding helps you maintain specific performance targets, like a fixed cost per result or desired return on ad spend (ROAS). Manual bidding, on the other hand, gives you complete control to set a maximum bid amount in auctions, ideal for advertisers who closely track costs and conversion rates. 

5. What is the best budget for Instagram and Facebook Ads?

The best budget depends on your campaign objective and performance goal. Use daily or lifetime budgets to manage spending properly. For example, if optimizing for link clicks, your daily budget should be at least 10 times your average cost per click to achieve consistent delivery and stable performance.