What are display ads?
Display ads are visual advertisements that typically appear online on websites, social media platforms, or mobile apps. Unlike text-only ads, display ads often combine text and images, while some also use video and audio elements.
Thanks to their placement in digital media, display ads can be configured to be highly customized based on various parameters using information about the target audience. For instance, ads can be programmed within display advertising software to run only on sites within a certain interest area or niche, while others could display only to users on a particular social media platform.
Display ads are typically run on a cost-per-click (CPC) basis, wherein the business only pays for the advertising space if a user clicks on the ad itself. This can make display advertising one of the most cost-effective methods of digital marketing, much cheaper than traditional advertising that targets mass audiences, like billboards or television commercials.
Types of display ads
Display ads can vary based on the kind of media they are, such as images with text or video. But this is often determined by the type of ad a business is creating.
- Personalized content ads. While display ads can’t be tailored specifically to an individual, unless they’re a remarketing ad, personalized content is still important. Affinity groups, or groups based on their likes and hobbies, are an effective targeting option for display ads. For instance, an ad could be set to target “movie lovers” and feature imagery and text reflecting the group’s interest.
- Remarketing ads. Retargeting a user who’s already interacted with a brand can generate significant increases in revenue. With remarketing ads, the specific ad design is based on touchpoints a customer has already had with the business, with the ad being shown to them based on their collected web browsing cookie history. This is especially effective in e-commerce advertising because display ads can be created based on abandoned carts to entice users to return to the site and complete their purchase.
- Site-placed ads. Businesses can custom-select where they want to display their ads. This approach can be combined with other kinds of contextual and personalized display ad targeting to increase the likelihood of a user clicking on the ad.
Basic elements of display ads
The goal of display ads is to convert people into paying customers. All display ads should incorporate the same basic elements.
- A clear audience. Without a targeted focus, display ads quickly become digital billboards. When this happens, they’re less effective. Any display ad should have a clear demographic in mind, with multiple ads that appeal to different audience segments.
- A call to action. One of the most important features of a display ad is that it’s clickable. Users are encouraged to click on the ad and go to a landing page where they can make a purchase. Having a clear call to action (CTA) means that users know what is expected of them when they see the ad.
- A visual component. Particularly on sites that may be running several ads at once, having a standout visual element makes a display ad more noticeable. Images and videos convey additional brand messaging beyond text, so display ads are more enticing to click on than a simple plain text ad.
Benefits of display ads
Any opportunity for a business to get in front of its target audience is useful. Some of the biggest benefits of display advertising are:
- Establishing a brand’s visual identity. As a visual medium, display ads demonstrate a clear tone and style to brands online. This creates interest for prospective customers and makes the brand stand out among competitors.
- Bringing interested prospects back to the website. Retargeting is a very successful method of advertising that encourages previously interested individuals to make a purchase decision. Display ads are a low-risk way to get back in front of these prospects with highly personalized content.
- Spending less money. When advertising online, display ads are often one of the least expensive options. The CPC model is flexible and works with small budgets, while cost-per-impression (CPM) options get ads in front of new, bigger audiences for a fraction of the cost of traditional advertising.
- Easily measuring success. It’s easy to determine whether ads were successful in driving additional sales, thanks to data on clicks and conversions.
Best practices for display ads
With all the options out there for running display ads, it’s challenging to know where to start. Creating simple, effective display ads often comes down to:
- Using a clutter-free design. Space on websites and within apps for display ads is often very small. That’s why it’s best not to cram too many words or visuals into the ad’s design. Rather than overwhelming the audience with small text or jarring color choices, concentrate efforts on making a simple, effective design.
- Focusing on quality over quantity. Rather than creating hundreds of versions of similar ads, it’s best to invest time and budget into making a handful of high-quality ads instead, with clear calls to action and interesting visuals.
- Being respectful of the target audience. Endless pop-ups and auto-playing videos quickly irritate an audience and leave them with a negative impression of a brand. When creating display ads, think about how and where the ad will be and what that experience will look like for a user.
Capture the attention of previous website visitors using effective display ad retargeting software to encourage them to return to your site and complete their purchase.
Holly Landis
Holly Landis is a freelance writer for G2. She also specializes in being a digital marketing consultant, focusing in on-page SEO, copy, and content writing. She works with SMEs and creative businesses that want to be more intentional with their digital strategies and grow organically on channels they own. As a Brit now living in the USA, you'll usually find her drinking copious amounts of tea in her cherished Anne Boleyn mug while watching endless reruns of Parks and Rec.
