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Dynamic Search Ads helps you reach your customers with the right information, in the moments they’re searching — without the need to manage keywords. Using Google’s organic web crawling technology, DSA indexes your website to determine which searches to show ads for. If a search is relevant to the content on your website, Google will automatically create an ad to enter into the auction. Your ads’ headlines and landing pages are generated based on the products and services you offer, and what people are searching for. These highly targeted ads also complement other AdWords campaigns by delivering value for relevant searches that aren’t covered by existing keywords.

Source: Inside AdWords: Introducing more powerful Dynamic Search Ads, built for your business