March 6 2025

5 mins

What is display advertising and what are the benefits of display ads?

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Marcel Głowacki

There are many ways to effectively conduct advertising activities on the Internet, but often one of the most important elements of any digital advertising campaign is display advertising. Display ads are a vital part of online advertising, helping businesses maximize their reach and engagement.

What is Display Advertising?

The simplest definition of display advertising may be as follows: Display ads are image-based ads that contain a text message calling for action—clicking on the ad—after which the target URL opens. Display advertising is a form of advertising that can serve multiple objectives:

  • Brand awareness: Reaching a broad audience to enhance brand recognition.

  • Traffic generation: Encouraging users to visit a website.

  • Lead generation: Capturing user data such as email addresses.

  • Sales-driven campaigns: Converting viewers into customers.

  • Remarketing: Re-engaging users who have interacted with your brand before.

How Does Display Advertising Work?

Display ads operate through advertising networks, which place your ads across a vast range of websites. These networks, such as the Google Display Network, help advertisers reach targeted audiences based on user behavior, demographics, and interests.

Benefits of Display Advertising

A display ad campaign offers several advantages, including:

  • Large reach: Display ads allow advertisers to reach users across advertising networks and websites.

  • Cost-effective advertising: Many types of display advertising are available at lower ad costs compared to search or social media ads.

  • Advanced targeting: Advertisers can use behavioral, demographic, contextual, and geo-targeting to refine their ad campaign.

  • Diverse ad formats: Options include banner ads, video ads, rich media ads, and native ads.

  • Easy tracking and measurement: Display ad campaigns provide measurable performance indicators, including CPM, CTR, CPC, and CPA.

Types of Display Advertising

There are several types of display ads available, each offering unique benefits:

1. Banner Ads

Banner ads are the most common display ad format and appear at the top, bottom, or sides of a webpage. Leaderboard ads, a type of banner ad, are often placed prominently to attract attention.

2. Native Ads vs. Display Ads

Native ads blend seamlessly with website content, making them less intrusive and improving user engagement. Native advertising is often more effective than traditional display ads because users perceive them as organic content.

3. Rich Media Ads

Rich media ads include interactive elements such as animation, audio, or video. These media ads engage users more effectively than static images.

4. Video Ads

Video ads appear in display advertising networks, including YouTube, social media, and partner websites. They provide a dynamic way to convey messages and increase user engagement.

5. Interstitial Ads

These pop-up ads appear between content transitions, often covering the entire screen before allowing users to continue to their destination.

6. Google Display Ads

Google display ads offer businesses a way to maximize visibility through the Google Display Network, which reaches millions of users worldwide.

Getting Started with Display Advertising

If you are new to display marketing, follow these steps to launch a successful display ad campaign:

Step 1: Define Your Goals

  • Determine whether you want to build brand awareness, drive traffic, or increase conversions.

  • Select appropriate types of display advertising for your campaign.

Step 2: Choose the Right Advertising Networks

  • The Google Display Network (GDN) reaches millions of websites and apps.

  • Other advertising networks offer different levels of audience reach and targeting.

Step 3: Design Effective Display Ads

  • Use ads that appear visually appealing with high-quality images and clear CTAs.

  • Ensure your display ad sizes match placement requirements.

  • Incorporate interactive advertising bureau standards for optimized performance.

Step 4: Launch and Manage Your Ad Campaign

  • Set your budget and bidding strategy.

  • Choose ad placements that align with your target audience.

  • Continuously track and optimize the effectiveness of your display advertising.

Managing Display Advertising: Best Practices

To maximize the effectiveness of your display ads, follow these best practices:

  • Use display ads with high-resolution graphics and compelling CTAs.

  • Ads are placed on websites relevant to your industry to enhance engagement.

  • Ads help reinforce brand messaging across different platforms.

  • Use the Google Display Network to scale campaigns efficiently.

  • Monitor ads are performing in real-time using analytics.

  • A/B test display ads to determine the best-performing creatives.

Checklist for a Successful Display Ad Campaign

  • Clearly define campaign goals.

  • Choose the best types of display advertising for your strategy.

  • Optimize banner ads and rich media ads for engagement.

  • Set a realistic budget for ad spend and adjust as needed.

  • Continuously analyze performance metrics and tweak campaigns.

Common Display Ad Sizes

Choosing the right display ad sizes is crucial for performance. Here are the most common formats:

  • 300x250 (Medium Rectangle)

  • 728x90 (Leaderboard)

  • 160x600 (Wide Skyscraper)

  • 320x50 (Mobile Banner)

  • 970x250 (Billboard)

Example of Display Advertising Campaign

A retail brand wants to increase sales during the holiday season. They create a display advertising campaign with:

  • Banner ads and video ads placed on shopping sites.

  • Rich media ads with interactive elements.

  • Retargeted display ads for abandoned carts.

  • Native ads placed within gift guide articles.

  • A/B tested display ad formats for maximum engagement.

The Future of Display Advertising

With evolving technology, display advertising is dynamic and continues to offer new opportunities. Programmatic display advertising offers automated ad buying, making campaigns more efficient and data-driven. Google Ads and other advertising networks continue to refine targeting capabilities to improve display marketing.

Final Thoughts on Display Ads

Modern display advertising is a type of online advertising that combines effective display strategies, automation, and targeting precision. By leveraging social media ads, Google display ads, and search ads, businesses can enhance their ad campaign performance while maximizing advertising market share. By understanding the benefits of display advertising and utilizing various advertising formats, companies can create high-impact, cost-effective ad strategies that reach their target audience efficiently.


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