Internet users know surfing the web or watching online video content goes hand in hand with advertising. After all, paid ad campaigns finance many internet businesses, from social media platforms to newspapers. One of the most prevalent types of online ads is display advertising, which can range from still images that mimic traditional advertising to those that incorporate interactive elements.
What is display advertising?
Display advertising is a form of digital advertising that places visual ads on websites, apps, or other digital platforms. It can take various forms, including banner ads, images, and videos.
Typically, a user’s browsing history, demographics, or interests determine what display advertising campaigns they see. Online display advertising networks like Google Display Network serve these ads, which can show up for users on desktops, mobile devices, or tablets.
Display ads usually contain clickable elements—like hyperlinks that lead to web pages. If a user clicks on the ad, it will direct them to a landing page, like a site’s homepage or an ecommerce product listing.
Responsive display ads
Google Ads, the leading platform for online advertising, lets you create responsive display ads. These ads automatically adjust their size, appearance, and format to fit available ad spaces on various online platforms, websites, and apps in the Google Display Network.
Instead of using one ad for every format, Google has advertisers upload multiple assets, such as headlines, descriptions, images, and logos. The ad network then uses machine learning to create ads that work across different devices and platforms.
4 benefits of display advertising
Display ads are one of the most effective marketing communications options available. Here are four notable benefits of display ads:
1. Memorable imagery
Some businesses use search ads, the text-based ads that turn up on search engine results pages (SERPs). However, search advertising can blend in with other text on the SERP. By contrast, your uploaded display ads can feature dynamic visual content that can capture the attention of your target audience.
2. More control over campaigns
You have autonomy over your campaign settings on an ad network. You can control your ad spend, tweak campaign language, and upload new images and videos, letting you adjust as you learn more about what’s effective.
3. Cost savings
With so many resources available, you can learn to run and manage a successful campaign on your own, saving you money. “We taught ourselves Facebook, Instagram, and Google Ads because it would be expensive to pay an agency or pay someone a percentage of ad spend to run those ads for you,” Selom Agbitor, cofounder of the tattoo aftercare company Mad Rabbit, says on an episode of Shopify Masters.
4. Useful for testing
If you’re unsure if a product is the right match for your customer base, you can use display ads to test your theory. “We started running ads before we even had any actual physical product because I wanted to make sure that there was a product-market fit before we spent time cooking tattoo balm,” Selom says. “Within the first week of running ads, orders started coming through.”
Types of display ads
Your display ad campaign can take many forms and appear in different places across the internet. Here are some of the display ad formats that a digital ad group will likely offer:
Banner ads
Banner ads are one of the most traditional types of display marketing ads. These are static or animated image ads that appear at the top (leaderboard ads) or sides of a webpage.
These ads aim to increase brand awareness and website traffic as part of a broader marketing strategy. However, their ubiquity has led to banner blindness, where potential customers unintentionally skip over a banner ad while reading a web page. Despite this, banner ads remain a staple in awareness campaigns.
Video ads
Video ads are a highly engaging form of online advertisement that appear on websites, social media feeds, or apps. These ads often include clickable elements to drive users to a landing page, increasing campaign performance and click-through rate (CTR).
Interstitial ads
Interstitial ads are full-screen ads that appear between content, such as between levels in a game or while a web page is loading. These ads require user interaction to close (either by clicking on a text box or on an “X” symbol), which makes them highly noticeable but also disruptive.
Native ads
Native ads are display ads that blend into the content of a webpage or social media feed, with the ad space mimicking the design and style of the platform. Native advertising reduces banner blindness and increases the likelihood of users engaging with the marketing message. Native display ads can appear as sponsored content in news articles, search engine results, or social media.
Rich media ads
Rich media ads are interactive ads that incorporate video, audio, or interactive elements like carousels or expandable sections. These dynamic ads can capture attention and engage the target audience. Rich media ads are often a part of programmatic display advertising, where ad networks place them on multiple websites to reach the right audience.
Retargeting ads
Also known as remarketing ads, retargeting ads set their sights on users who have previously visited a website but didn’t complete a purchase. Ad networks let advertisers target users on third-party websites to encourage them to return and complete their purchases.
Pop-up ads
These ads appear suddenly over a web page. The ads displayed often disrupt the user’s view, and they require active clicking to remove. However, they intrinsically require user engagement, making them valuable to some marketers.
How to launch a display advertising campaign
- Define your goals
- Segment and structure your ad groups
- Adhere to industry standards
- Aim for originality
- Monitor and manage your costs
- Continuously optimize your campaigns
With the right approach, you can create, manage, and finance a display ad campaign without needing to enlist a professional advertising agency. Here are six tips for display ad success:
1. Define your goals
Before you invest any money, identify the objective of your campaign. Do you want to increase brand awareness, generate leads, or drive sales? If your goal is engagement, interactive ads may be the best fit. If you’re trying to bolster your brand’s reputation, native ads intertwined with text may be a better choice. Setting clear objectives helps guide every other aspect of your campaign, so be intentional at the start of your endeavor.
2. Segment and structure your ad groups
Organize your campaign into different ad groups centered on audience demographics, interests, or website placements. Each ad group should have a specific theme, such as a product line, to allow for better targeting. This approach enables more tailored messaging and lets you deliver the right message to the right audience.
3. Adhere to industry standards
Consult Interactive Advertising Bureau (IAB) guidelines to ensure your ads meet shifting industry standards. Using the right branding language, the optimal image aspect ratio, and the best demographic targeting can yield better results.
4. Aim for originality
While you want to make sure your ads conform to industry standards where applicable, you also want to stand out from the pack. This means getting creative with your ad copy, images, and videos.
“If you’re reactive, you’re just waiting for someone else to do something for you to copy,” Selom says. “So we tried our best to make sure that whatever we were putting out there was a new concept.”
5. Monitor and manage your costs
To keep your campaign running for as long as possible, manage your display ad costs. Use bidding strategies that align with your campaign goals. For example, opt for cost-per-click (CPC) ads if you want to drive traffic or cost-per-mille (CPM) ads if you’re after impressions (ad views) to increase brand awareness.
Continuously track your ad spend and adjust bids as necessary to ensure you’re maximizing return on investment. The leading ad platforms let you set daily budgets for each ad group, giving you better control over your overall campaign expenditure.
6. Continuously optimize your campaigns
Running a successful display advertising campaign is not a one-time effort; it requires continuous optimization. Most platforms let you A/B test different ad creatives and formats. They also let you experiment with ad group targeting to see what most resonates with your audience. Use the performance data to make adjustments—whether it’s tweaking the copy, changing the imagery, or experimenting with new interactive ads.
Display advertising FAQ
What is a display ad example?
An example of a display ad is a banner ad promoting a furniture brand’s latest chaise lounge, featuring an eye-catching image and a clickable call to action that leads you to an ecommerce page.
Does display advertising still work?
Yes, display advertising still works effectively, particularly for increasing brand awareness and driving targeted traffic. This is especially true when you optimize ads with the right targeting and creative strategies.
How do display ads make money?
Display ads make money for the ad platform through models like cost-per-click (CPC), where advertisers pay for each click, or cost-per-impression (CPM), where they pay based on the number of times the ad appears to users. Display ads make money for brands because they build awareness and drive traffic to their sites. This ideally leads to more customer purchases and revenue.
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