Display Ads
Last updated: January 21, 2025
What are display ads?
Display ads are a form of online advertising that uses visual elements such as images, animations, or videos to deliver an advertising message. Unlike text-based ads, display advertising appears in the ad slots of websites, in mobile apps, or on social media platforms, and it is often served as banner ads, pop-ups, or in-video ads. Their main purpose is to capture the attention of users who are already browsing a web page.
The fundamental goal of this ad format is to increase brand awareness, spark interest in products or services, and reach potential customers early in their decision-making process. Display ads operate within the so-called display network, a collection of thousands of publisher websites that make ad space available.
Table of contents
How display ads make an impact: The funnel idea
Within the marketing funnel – a model that maps the customer journey – display ads play a decisive role, especially at the top (top of funnel) and middle (middle of funnel) stages. In the very first phase, the aim is to make a broad audience of potential customers aware of a brand or a product. Visually compelling ads are ideal for this.
Once initial interest has been sparked, display ads come into play in the middle of the funnel to deepen the relationship with the user. Retargeting is often used here to deliberately re-engage users who have already visited a website. Thanks to the brand's repeated presence, the offer stays top of mind.
Display ads in action: A practical example
Imagine an online store that sells handmade leather bags. To raise awareness of its new collection, the store launches a display campaign. First, high-quality image and video ads are created that showcase the elegance and quality of the bags. These ads are placed on fashion blogs, lifestyle magazines, and in apps that are frequently used by the target audience.
Some users click on the ad and land on the product page but leave without buying. This is exactly where the second stage of the campaign kicks in: retargeting. Over the following days, these users see ad banners again on other websites that show precisely the bag they looked at, perhaps even with a small discount code. This gentle “nudge” reminds them of their interest and motivates many of them to complete the purchase.
Display ads compared to other ad formats
How they differ from search ads
The most fundamental difference between display ads and search ads lies in user intent and the advertising approach. Search ads are a form of “pull marketing”: they respond to demand that already exists. Display ads, on the other hand, do “push marketing”: they create demand by proactively delivering a message to users who are not actively searching at that moment.
Misconceptions and myths
A persistent myth is the assumption that display ads are ineffective due to “banner blindness.” However, modern targeting makes it possible to serve ads so precisely that they are relevant and useful to the user. Another misconception is that success can be measured by direct clicks alone. Many users, though, remember the brand later and search for it directly (view-through conversion).
Frequently asked questions (FAQ)
How do display ads differ from search ads?
Display ads are visually appealing ad banners or videos served on websites or apps to attract attention. Search ads, on the other hand, are text-based ads that appear in the search results when users actively search for specific keywords. The main difference lies in the context and the user's intent.
What targeting options are available for display ads?
Display ads offer a wide range of targeting options: demographic attributes, interests, behaviors, and website history. The most common methods include placement targeting (ads on specific websites), custom audiences, and retargeting (ads served to users who have already visited your own website).
How do you measure the success of display ad campaigns?
The success of display ad campaigns is measured through various metrics: impressions, click-through rate (CTR), conversions, and cost per conversion. Depending on the campaign's goal, different metrics come to the fore.
What is retargeting and how does it work with display ads?
Retargeting is a strategy in which display ads are served to users who have previously visited a company's website or app. When a user visits a website, a cookie is stored in their browser. This cookie later identifies the user and enables ad networks to display specific display ads on other websites.
Related terms
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