You see them everywhere—those visual ads on websites, apps, and social feeds. But what is display advertising exactly and how does it work? If you’ve been trying to figure out how brands appear across the internet so consistently, this guide will help.
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What Is Display Advertising?
Display advertising is a type of online advertising that uses visuals—like images, animations, or videos—to promote a message. These visual ads appear across third-party websites, mobile apps, and social media platforms, helping brands reach people while they’re browsing, reading, or watching—not just when they’re actively searching for something.
You’ve probably seen banner ads at the top of news sites, video ads on YouTube, or interactive ads that let you scroll, tap, or explore products. These are all examples of display ads, and they come in a variety of ad formats. Some are simple image ads, while others are more dynamic rich media ads that include motion, sound, or clickable features. The goal is to catch attention and encourage clicks or engagement.
These ads displayed across the web are typically distributed through ad networks like the Google Display Network, which connects advertisers with available ad space on millions of sites. Instead of reaching users on one platform, your display marketing ads can show up on blogs, forums, streaming sites, and more—wherever your target audience spends time online.
It’s important to understand how display advertising differs from search advertising. Search ads appear in response to a user’s query—for example, someone Googling “best hiking boots.” Display ads, on the other hand, reach people who may not be actively looking but fit your targeting criteria. That’s what makes them ideal for raising awareness, reinforcing messaging, and staying top-of-mind.
By combining creative visuals with smart placement, display ads offer a flexible way to share your message, build trust, and drive traffic back to your landing page. Whether you’re launching a new product or just want to increase brand awareness, display advertising helps you reach more people in more places—with less effort than you might expect.
How Display Advertising Works
At its core, display advertising connects brands with audiences across the internet using visual ads. This system relies on ad networks like the Google Display Network, which match your ads with available ad space on third-party websites, apps, and social media platforms.
You don’t need to contact individual publishers. Instead, you work through a platform that handles distribution automatically—placing your ads in front of the right people based on your targeting settings and available inventory.
This is where programmatic display advertising comes into play. It uses algorithms and real-time bidding to determine which ads are shown, where, and to whom—all in milliseconds. The result is broad reach with minimal manual setup.
Another core tactic is retargeting ads (or remarketing ads). These are shown to users who’ve previously interacted with your site—like checking out a product or starting checkout. Retargeting helps you stay top-of-mind and increase conversions by reconnecting with potential customers as they browse other sites.
In short, display advertising work happens behind the scenes through smart automation, audience targeting, and wide distribution—making it possible to get your message seen without managing every placement by hand.
Common Display Ad Formats
Display ads come in a variety of shapes, sizes, and styles—each designed to catch attention in different contexts. Choosing the right ad formats depends on your goals, audience, and where your ads will be shown, whether that’s on desktop sites, mobile apps, or across social media platforms.
Here are some of the most common display advertising formats you’ll come across:
- Image ads: Simple static banners or graphics. These are easy to create and often appear on desktop websites or mobile apps.
- Rich media ads: Interactive or animated ads that might include video, sliders, or expandable elements. These are designed to increase engagement and can improve click through rate.
- Responsive display ads: Automatically adjust in size, format, and layout to fit available ad space across different screen sizes and devices. A flexible choice for wide reach.
- Mobile leaderboard ads: Horizontal banners designed specifically for mobile devices. They usually sit at the top or bottom of a mobile screen.
- Interstitial ads: Full-screen ads that appear during natural breaks in app use or website navigation—often used in mobile gaming or content apps.
- Native display ads: Ads that match the look and feel of the surrounding content. These often blend into web pages or app feeds to create a more seamless user experience.
- Uploaded display ads: Custom-designed ads (often image or HTML5) that you upload directly into platforms like Google Ads for full creative control.
- Pop up ads: Ads that appear in a separate window or overlay. These can be attention-grabbing but may be blocked or ignored by users.
Understanding these display ad formats helps you match the right creative to the right placement—boosting visibility and making every impression count
Display Advertising vs Traditional Advertising
Before digital ads took over the web, traditional advertising—like print, radio, and TV—was the go-to method for getting your message out. While those formats can still build awareness, they lack the precision, speed, and flexibility of today’s display advertising.
With traditional channels, you’re often paying for exposure without knowing exactly who saw your message or how they responded. There’s no easy way to track key metrics like clicks, conversions, or return on investment. Once the ad runs, it’s gone—and your ad spend might be wasted if it didn’t reach the right people.
Display advertising, on the other hand, is built around data and control. You can choose your target audience, test different ad creatives, monitor real-time performance, and scale your efforts based on results. Thanks to ad tech and platforms like Google Ads, you can automate bidding, run programmatic display advertising, and adjust your campaigns on the fly.
The bottom line? Display ads are not only more measurable, but also more scalable—whether you’re working with a small budget or running ads across hundreds of web pages. You see what works, fine-tune your approach, and make sure every dollar of ad spend is working harder for your business.
Types of Display Advertising
There’s no one-size-fits-all approach to display advertising. Depending on your goals and strategy, you can choose from several ad types—each offering different ways to reach your audience across multiple websites, social media platforms, and apps through advertising networks.
Here’s a breakdown of the most common types:
- Banner ads: These are the classic horizontal or vertical display ads you’ve seen on blogs, news sites, and forums. They’re often placed at the top or sides of a page and are great for brand visibility and simple calls to action. Banner ads are one of the most widely used formats in online display advertising.
- Native ads and native display ads: These blend into the surrounding content, matching the look and feel of the website or app they appear on. Unlike obvious ads, native display ads are designed to feel like part of the experience, which can lead to higher engagement and a better click through rate.
- Programmatic display advertising: This uses ad tech to automate the buying and placement of ads in real time. You set your budget, audience, and rules, and the platform handles the rest—bidding on available ad space across countless third-party websites. It’s fast, scalable, and data-driven, making it ideal for marketers who want efficiency without sacrificing control.
- Retargeting ads (remarketing ads): These focus on people who’ve already visited your website, clicked a product, or added something to their cart. By showing relevant ads displayed on other sites they visit, retargeting ads keep your brand top-of-mind and often lead to higher conversions.
No matter which type you choose, most follow guidelines set by the Interactive Advertising Bureau (IAB). These standards help ensure your display ads load properly, look good on different devices, and meet quality expectations across the web.
Understanding the different types of display marketing ads helps you align format and delivery with your audience’s behavior—and that’s how you build a more successful campaign.
How to Launch a Display Ad Campaign
Running a display ad campaign can feel overwhelming at first, but the process becomes straightforward once you break it down. Here’s how to go from planning to launch—with plenty of room to optimize along the way.
Step One: Choose a Platform
Start by picking where you’ll run your ads. Google Ads is the most popular choice, giving you access to the Google Display Network, which spans millions of third-party websites, apps, and web pages. Other platforms include Facebook Ads Manager and DSPs (Demand-Side Platforms) for programmatic display advertising.
Step Two: Set Campaign Goals, Ad Creatives, and Target Audience
Before launching, define your campaign goals. Are you trying to increase brand awareness, boost sales, or drive website traffic? Then, create your ad creatives—these could be banner ads, responsive display ads, or rich media ads. Next, choose your target audience using filters like location, interests, or behavior. If you’re running retargeting ads, set up audience lists based on past interactions.
Step Three: Define Your Ad Spend and Optimize Campaign Performance
Set your daily or total budget and determine how much you’re willing to pay per impression (CPM) or click (CPC). Once your campaign is live, track key metrics like click through rate, conversions, and bounce rate to evaluate your campaign performance. Use A/B testing to compare creatives and messaging, and adjust your ad spend based on what works.
Step Four: Test Ad Formats and Plan Future Display Ad Campaigns
Experiment with different display ad formats—like native display ads, image ads, and interactive ads—to see what resonates with your audience. Use what you learn to plan smarter, more targeted future display ad campaigns. The more you test, the more refined your strategy becomes.
Display Advertising Examples
To see how display advertising works in the real world, here are a few standout examples that showcase different formats and strategies:
- Airbnb (Banner Ad): Airbnb runs clean, eye-catching banner ads across travel blogs and news sites. The visuals often show cozy homes with a short, friendly headline. What works: simple design, strong imagery, and a direct path to the landing page for booking.
- Spotify (Native Display Ad): Spotify uses native ads on platforms like Reddit and mobile news apps. These ads match the tone and layout of the platform while promoting free trials or personalized playlists. What works: seamless integration and relevance to the user experience.
- Nike (Rich Media Ad): Nike frequently runs rich media ads featuring short videos or product carousels. Users can interact with the ad—scrolling through shoes or watching a clip—without leaving the page. What works: interactivity and visual engagement that drives clicks.
- Blue Apron (Retargeting Ad): After visiting their site, users may see retargeting ads showing meal kits they viewed, along with a discount. What works: timely reminder + strong offer = high conversion potential.
These display ads offer different paths to engagement but share a common goal: grab attention and lead users toward action.
Display Ad Costs and ROI
Understanding how display advertising is priced—and how to track its impact—can help you make the most of your ad spend.
What Affects Display Ad Costs
Your total cost depends on several factors. Most platforms use a bidding system where you compete for ad space based on audience, timing, and placement. If you’re targeting a niche group or aiming for premium slots on high-traffic web pages, you can expect to pay more. The complexity of your ad creatives—like using rich media ads instead of static images—can also influence pricing.
Common Pricing Models
There are three main ways platforms charge for display ads:
- CPM (Cost Per Mille): Pay per 1,000 impressions—great for increasing brand awareness.
- CPC (Cost Per Click): Pay only when someone clicks—useful for driving website traffic.
- CPA (Cost Per Action): Pay when users take a specific action, like making a purchase or signing up.
Each model aligns with different campaign goals, so it’s important to choose based on what matters most to your business.
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Measuring ROI and Improving Performance
To track success, focus on key metrics like click through rate, conversions, and traffic lift. This helps you compare results to your total ad spend and understand what’s working.
Most ad networks, including Google Ads, provide detailed dashboards to monitor campaign performance in real time. Use this data to test different ad formats, refine targeting, and plan smarter future display ad campaigns—so your investment keeps delivering more over time.
Creating a Display Advertising Strategy
Running display ads without a strategy is like tossing flyers into the wind—you might get lucky, but you won’t build anything consistent or scalable. If you want to get real results from your display marketing ads, you need a plan that connects your creative ideas with your campaign goals, audience behavior, and long-term brand visibility.
Here’s how to build a display advertising strategy that’s thoughtful, effective, and built to improve over time:
1. Match Ad Creatives to Your Audience
Your ad creatives should align with the interests, habits, and expectations of your target audience. A corporate audience might respond to clean, minimal image ads, while younger users on mobile might engage more with rich media ads or bold visuals. Know your audience, then speak directly to them.
2. Use Multiple Ad Formats
Don’t rely on a single ad format. Different placements and devices call for different types of ads. Try a mix of banner ads, responsive display ads, interactive ads, and native display ads to see which perform best across third-party websites and social media platforms.
3. Analyze and Plan Future Campaigns
Every campaign is a chance to learn. Use your campaign performance data to identify which messages landed, where conversions came from, and how your ad spend paid off. Apply those insights to your future display ad campaigns.
4. Tie Everything Together
Consistency matters. Your display ads, brand messaging, targeting, and ad placement should all reinforce each other. When done right, your ads support your wider digital marketing efforts and help build lasting brand visibility—not just short-term clicks.
Conclusion
Display advertising gives you a way to get your brand in front of the right people—without waiting for them to come to you. With the right mix of strategy, creative, and targeting, it can support your broader digital advertising efforts and help you stand out in a crowded online space. Whether you’re aiming for awareness, engagement, or conversions, knowing how display ads work puts you in control. Use what you’ve learned here to make more informed decisions—and get more from every impression, click, and campaign.
Next Steps: What Now?
- Pick one display ad platform (like Google Ads) and set up a basic campaign.
- Choose a clear goal, create one or two simple ad creatives, and set a small budget.
- Let the campaign run for a week while tracking key results like clicks or conversions.
- Use what you learn to tweak your ads, adjust targeting, or try a new ad format next time.
Further Reading & Useful Resources
- What Is Digital Marketing: Find out what digital marketing really is and what the best strategies are for improved customer loyalty and business growth.
- How to Create a Website: Check out our comprehensive, step-by-step guide for beginners and small business owners about creating their first website hassle-free.
- How to Effectively Add Ads to Your Website: Learn the best ways to integrate different ad types—including display ads—into your site without overwhelming visitors.
- What Is Google Display Network: Discover how the GDN works and how to leverage it for wider ad reach and smarter targeting.
- Best Ad Networks for Bloggers & Small Publishers: Explore top ad networks—including Google AdSense—and find out which ones offer the best value for your traffic.
- Google Ads Guide: Boost Your Digital Advertising Campaigns: A solid walkthrough of how to set up, manage, and scale campaigns across search and display channels.
- What Is Native Advertising & How It Works: This one explains how native ads work—perfect if you want to blend your display ads seamlessly into content.
