Dynamic search ads would be most helpful for: (There are 3 variations of this question. Please see the highlighted answer carefully)

  • A global, online clothing retailer that changes its inventory seasonally Websites / a global, online clothing retailer that changes its inventory seasonally with / hundreds or thousands of products, services, or listings that frequently change
  • Moving an ads position dynamically in whatever direction a user’s eyes are looking.
  • Campaigns that need to reduce exposure on competitive keywords.
  • A local restaurant with a dynamically changing menu that offers fresh new entrees every few months.

The correct answer is:

  • A global, online clothing retailer that changes its inventory seasonally Websites / a global, online clothing retailer that changes its inventory seasonally with / hundreds or thousands of products, services, or listings that frequently change

Explanation: Businesses with websites that contain a lot of content or well-structured URLs will see the best results from using Dynamic Search Ads. Here are some additional examples of the types of businesses that are a good fit for using this campaign type:

  • Your website features different products or
  • You sell seasonal product lines or other offerings, or you’re expanding your business to new

Read more here: https://support.google.com/adwords/answer/2471185?hl=en