Can you please tell me more about dynamic search ads?

Dynamic Search Ads target relevant searches with ads generated directly from your web site dynamically. With Dynamic Search Ads, Google keep a fresh index of your web inventory. When a relevant search occurs, Google dynamically generate an ad with a headline based on the query, and the text based on your most relevant landing page. The ad enters the auction and competes normally. So you get better results from broader exposure for more of your in-stock inventory, without making any changes to your existing keyword campaigns.

The Short answer is Google generate ads dynamically from the content of the website. It is also depends on the setting while setting up dynamic ads.

Before starting dynamic ads , the website or landing page should be optimized with content related titles.

To say it simple Google takes keyword automatically from its Adwords , instead of you adding it manually. 

Well one will have to monitor and check the keywords for the relevance. 

When creating targets for your DSA campaign, think of how you can break them out into different ad groups. That way, you can use your ad description lines to be as relevant as possible.

Understand the correct way to set up your destination URLs. It's important! I prefer the {unescapedlpurl} ValueTrack parameter appended with any third party tracking.

Be sure to add a decent set of generic terms as negative keywords for your Dynamic Search Ads campaign. Many of us already have generic campaigns running to catch non-branded keywords, but we usually intentionally limit their budget. If during the day your generic campaigns cap out, Dynamic Search Ads can continue serving ads on those generic terms (if they're a good match to your site) unless you add them as negative keywords to your DSA campaign.

Consider adding some high-volume brand keywords as negatives too. You don't want to pull traffic away from any top performers once you launch your DSA campaign.

Once you're up and running, check your Search Term and Category Reports often. This is where you'll find your query data. You won't find anything in your Keywords tab, so don't be alarmed if this tab is empty.

If you've found a high-converting query in your Search Term report, move the keyword to the appropriate traditional campaign (with a relevant ad) and then also add the keyword as a negative to your Dynamic campaign, so that it won't continue to serve for your Dynamic campaign. Similarly, if you find search terms or categories with sufficient volume that aren't converting, these should also be added as negatives for the DSA campaign, and potentially for other campaigns as well.

Feel free to set up your regular bells and whistles, too. You can add most of your regular ad extensions to your dynamic campaigns. For sitelinks, you can either create your own, our let the DSA campaign pick "automatic sitelinks" for your campaign. These, much like the ad headline, are dynamically created based on the search.

Just like with the rest of your enhanced campaigns, you can make bid adjustments to your DSA campaign. Also, there are a number of bidding options as well, including CPC bidding, eCPC bidding, Conversion Optimizer, and more. Pick the strategy that works best for your business and its goals.

Dynamic Search Ads automatically show your ad based on the content of your website. Instead of keywords, DSA uses dynamic ad targets(google's organic indexed pages) to show your ads to customers. 

Below are the five types of dynamic ad targets :-

a) All webpages: Every single page in your website's domain.

b) Categories: The Dynamic Search Ads system uses Google's organic search index for your website to see the themes of your website content. Once google's system identifies these themes, google create "categories" that you can

target. 

c) URLs: Pages with URLs containing certain strings that you specify.

d) Page title: Pages with titles that contain certain words. 

e) Page content: Pages that contain certain words that you specify.

Do Post here, if you need any further information about DSA.