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Display Advertising : Meaning, Importance, Working and Types

Last Updated : 04 Apr, 2024
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What is Display Advertising?

Display Advertising refers to displaying graphical, visual, or multimedia advertisements on websites, applications, or social media platforms. These advertisements might be banners, photos, movies, or interactive features, among other formats. Display advertising, as opposed to text-based ones, tries to draw viewers in with eye-catching images and graphics. Advertisers can efficiently target certain audiences by using data like demographics, interests, and browsing activity. Display advertising is important because it helps companies create visually appealing material that increases brand awareness, drives traffic to their websites, and eventually generates leads or sales.


Geeky Takeaways:

  • Display Advertising is static or animated images typically placed prominently on web pages.
  • Display Advertising is more interactive and engaging than traditional banner ads.
  • Display Advertising can be targeted based on various criteria such as demographics, interests, browsing behavior, location, and more.

Importance of Display Advertising

1. Visual Appeal and Branding: Advertisers do their job especially well by displaying ads with graphics, images, and videos that will grab their target audience’s attention. Intuitive visual support is a brand recognition factor and is one of the key elements that form the basis of a strong visual identity, thus leading to a memorable and positive brand image.

2. Targeted Reach: Display advertisements are more exact because they can target specific viewers using demographics, interests, actions, and locations. By using this focused technique, the ad audience will probably include the people who are the right audience to listen to the ad, which increases the chances of getting agents and converters.

3. Increased Visibility: Improving the brand value, ads appear at key places and become highly visible as they are said to be in the internet space that is the main highway of traffic. This enlarged visibility goes hand-in-hand with building a brand, which aims to reach a large audience and get new customers.

4. Retargeting Opportunities: Display advertising enables re-marketing campaigns, which let marketers target visitors who have already acted in a certain way online. This customized approach usually yields a higher conversion rate due to customers being reminded of the items or services they had shown prior intentions to buy.

5. Multi-Platform Presence: Display advertising is the most versatile outlet as it can be displayed on all digital platforms like websites, social media pages, mobile applications, and more. Therefore, a multichannel presence will provide an opportunity for brands to stay at the forefront and shape consumer opinion by connecting with their audience, utilizing digital environments, and promoting their brand campaigns.

Pros of Display Ads

1. Increased Brand Visibility: The display ads project the brand’s visibility by being the first thing to appear on the webpages, which are visited by everyone; thus, the company’s message is well marketed to the public.

2. Targeted Advertising: The traditional banner display ads on a website also offer identifying features such as demographics, interest, behavior, and other platform-specific data. Such one-to-one advertising helps to raise the level of engagement through contact with a relevant target group.

3. Visual Appeal: By using strong visuals, display ads attract attention and deliver messages more efficiently than read-on-the-screen ads. The use of appealing images and videos may strengthen the association with the brand on the memory level, which is one of the markers of successful advertising campaigns.

4. Versatility in Ad Formats: The gallery of display advertising encompasses different ad types, including banners, images, videos, and rich media, which come in different forms. Hence, they can use any of the available formats for their specific campaign.

Cons of Display Ads

1. Ad Blockers: Today, digital ad blockers can challenge all display ad campaigns, as more and more users incorporate ad blockers as part of their software to filter undesirable ad content, undermining the ad’s impact.

2. Banner Blindness: The content-faced user will train their “banner blindness” to consciously or subconsciously neglect those banner ads, resulting from the familiarity they have with the placement and appearance of such ads on websites.

3. High Competition: Every online business is using display ads now; therefore, there will be very few site owners who are ready to host your ads due to the intense competition in the ad space. This makes it budget-friendly to be able to pose, hence one way or another, with pricey biggies like making visibility limited on sites of small-sized enterprises with limited budgets.

4. Limited Message Conveyance: Most commonly, these ads are printed on limited space, so you may find it quite difficult to explain the complexities and details of the message. Marketers have to shorten and scream about their actions to win attention and benefit from it.

How does Display Advertising Work?

Advertising of the multidimensional type is based on a combination of the appliance of technologies, data, and intellectual capabilities to accurately address the audience and present them with a personalized message. The following steps provide an overview of how display advertising works,

1. Advertiser Setup: An advertiser creates a display ad campaign with specific goals, such as driving website traffic, increasing sales, or raising brand awareness. They also define their target audience, budget, and other campaign parameters.

2. Ad Creative Creation: The advertiser designs the visual elements of the display ads, including images, text, and sometimes interactive features like animations or videos. These creatives should be attention-grabbing and relevant to the target audience.

3. Ad Placement Selection: Advertisers choose where they want their ads to appear. This can include selecting specific websites, mobile apps, or categories of content where their target audience is likely to spend time. Advertisers can also utilize targeting options to reach specific demographics, interests, or behaviors.

4. Ad Auction and Bidding: Ad space on websites and apps is typically sold through ad networks or exchanges. When a user visits a webpage or app, the publisher’s ad server sends a request to an ad exchange or network, seeking an ad to fill the available space. Advertisers participate in real-time auctions to bid on this ad space. The highest bidder’s ad is then displayed.

5. Ad Display: If the advertiser’s bid wins the auction, their display ad is shown to the user on the publisher’s website or app. The ad appears in the designated ad slots, such as banner placements, sidebar placements, or interstitial ads.

6. User Interaction and Engagement: Users who view the display ads may choose to interact with them by clicking on the ad. Clicking on the ad typically directs the user to the advertiser’s website or a specific landing page relevant to the ad’s content.

7. Tracking and Optimization: Advertisers track the performance of their display ad campaigns using various metrics such as impressions, clicks, conversions, and return on investment (ROI). They analyze this data to optimize their campaigns, adjusting targeting parameters, ad creative, or bidding strategies to improve results.

8. Ad Retargeting: For users who interacted with the ad but didn’t convert (e.g., make a purchase), advertisers may implement retargeting strategies. This involves displaying follow-up ads to these users as they browse other websites or use other apps, encouraging them to return and complete the desired action.

Types of Display Advertising

1. Remarketing Ads: Remarketing ads, also known as retargeting ads, are a type of online advertising that targets users who have previously interacted with a website or a specific brand online but haven’t completed a desired action, such as making a purchase or signing up for a service. These ads aim to re-engage these users and encourage them to return to the website or complete the desired action.

2. Personalized Ads: Personalized ads, also known as targeted ads or tailored ads, are advertisements that are customized and delivered to individual users based on their interests, behaviors, demographics, or other relevant data. These ads are designed to be more relevant and engaging to the user, increasing the likelihood of capturing their attention and prompting a desired action, such as a click or conversion.

3. Contextually Targeted Ads: Contextually targeted ads are advertisements that are displayed to users based on the content of the web page or app they are currently viewing. Unlike personalized ads, which rely on data about the individual user, contextually targeted ads focus on the context of the content being consumed at the moment.

4. Site-Placed Ads: Site-placed ads, also known as direct site placement or direct ad placement, refer to advertisements that are specifically placed on individual websites or digital properties, rather than being distributed through ad networks or exchanges. In site-placed advertising, advertisers negotiate directly with website owners or publishers to secure ad placements on their platforms.

Display Ads vs. Native Ads


Display Ads

Native Ads


Display ads are typically visually rich and come in standardized formats such as banners, skyscrapers, rectangles, and interstitials.

Native ads are designed to match the look, feel, and style of the content in which they appear.


Display ads are usually placed in designated ad slots on webpages or apps, such as sidebars, headers, footers, or between content sections.

Native ads mimic the visual design and layout of the host platform, making them appear more organic and less like traditional advertisements.

User Engagement

Display ads often rely on eye-catching visuals or animations to capture users’ attention.

Native ads tend to have higher engagement rates because they blend seamlessly with the content, making them more relevant and interesting to users


Display ads are usually clearly labeled as advertisements, either through visual cues such as borders or text labels like “Ad” or “Sponsored.”

Native ads are required to be disclosed as sponsored content, but the disclosure may be less overt and may blend with the design of the ad to maintain the native appearance.

How to Measure Display Ad Performance?

Measuring the performance of display ad campaigns is crucial for advertisers to understand the effectiveness of their advertising efforts and optimize their strategies for better results. Here are some key metrics and methods used to measure display ad performance,

1. Impressions: Impressions refer to the number of times an ad is displayed or viewed by users. It provides insight into the reach and visibility of the ad campaign.

2. Click-Through Rate (CTR): CTR measures the percentage of users who clicked on an ad after seeing it. It indicates the level of engagement and interest generated by the ad. CTR is calculated as the number of clicks divided by the number of impressions, multiplied by 100.


3. Conversion Rate: Conversion rate measures the percentage of users who completed a desired action after clicking on the ad, such as making a purchase, signing up for a newsletter, or filling out a form. It indicates the effectiveness of the ad in driving meaningful actions. Conversion rate is calculated as the number of conversions divided by the number of clicks, multiplied by 100.


4. Cost Per Click (CPC): CPC measures the average cost paid by the advertiser for each click on the ad. It helps evaluate the efficiency of ad spending and budget allocation. CPC is calculated by dividing the total cost of the campaign by the number of clicks.


Best Practices for Display Ads

1. Define Clear Objectives: While making your campaign objectives clear, whether it’s brand awareness, leads, or sales doesn’t matter. By purposefully having clear aims, they will direct you to the most efficient way of implementing your strategy and measuring your results.

2. Eye-Catching Visuals: Develop eye-catching and clever banner advertisements for your website. See to it that strong images, colors, and fonts are applied in a manner that suits your brand identity. The “stopping power” of a visually striking ad is greater than its ability to get attention. Get is a globally funded organization that specializes in providing financial assistance for individuals and organizations impacted by natural disasters and economic crises.

3. Concise and Compelling Copy: The ad copy needs to be succinct and impactful; it should precisely state the purpose. Use convincing words, sheath the key benefit, and encompass an impressive CTA in communications.

4. Responsive Design: Guarantee the responsiveness and accuracy of your display ads concerning all devices and screen sizes. The effect is that responsive design and an improved user experience ensure the same engaging look across desktops, tablets, and other mobile devices.

Why do Marketers Prefer Display Advertising over Search Ads?

1. Brand Awareness and Visibility: Displayed ads are dramatically visual and consequently designed to stand out in such a way that the impression goes deep into the viewers’ memory, which, in turn, contributes to branding.

2. Rich Media and Creativity: Ads that are displayed offer a quite wider selection of ad formats like static banners, images, videos, and dynamic rich media. This multipurpose capability gives brands the liberty to promote their goods or services beyond the text-based features of search ads.

3. Targeted Visual Appeal: Display ads deliver advanced targeting options that allow marketers to reach only those ‘actionable’ groups of people with specific demographics, interests, and behaviors. Along with visually connected content, this focused strategy can thus be very important for display advertising as well.

4. Product Showcase: Businesses that offer visually stimulating products rather than services are at an advantage compared to search ads, where display advertising as a channel helps them more effectively showcase these items. The users in the fashion, travel, and lifestyle areas are the beneficiaries of this.

Display Advertising – FAQs

What is display advertising?

Display advertising is a type of digital marketing that is based on visual elements like banners, images, and videos to let website users and viewers of other digital platforms understand your products and services.

What is display advertising helpful for?

Display advertising is one of the most important aspects of SEO. It supports brands’ initiatives for being visible, reaching specific audience groups, and employing praiseworthy videos and images as their main advertising tools.

What types of display ads are best, and what rules can you follow to use these ads?

It’s considered best to identify motives, determine the target audience, create captivating imagery, serve for performance, and last but not least, keep up with modern design. 

What is a marketer’s reason for picking one over the other—display ads or search ads?

Marketers who display ads might find them a tool for brand awareness, creativity, flexibility, rich media choice, and the ability to visually communicate the products and services to a wider pool. 

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