Display advertising is defined as a mode of online advertising where marketers use banner ads along with other visual ad formats to advertise their product on websites, apps, or social media.

With global spends on digital advertising expected to cross USD 333 billion this year, it is essential to understand display ads in detail. Scroll down to know how display ads capture people’s attention, how they use targeting mechanisms, and what are the types, benefits, and examples of display ads.

Table of Contents

• What Is Display Advertising?
• The Display Advertising Targeting Process
• Types of Display Advertising
• Managing Display Advertising
• Display Advertising Networks: The Bedrock for Display Ad Management
• Getting Started With Display Ad Management
• Benefits of Display Ads: Key Takeaways for Marketers

What Is Display Advertising?

A popular and effective format of digital advertising is display advertising. It is completely driven by the visuals it uses to attract attention and spread brand awareness across the internet.

Display ads are a lucrative method of advertising for marketers looking for ways to reach and acquire customers. They make generous use of visual media in the form of texts, images, or even videos to catch people’s attention.

You can usually spot display ads in designated corners of webpages and social media platforms, and they are usually showcased in the form of a banner ad (graphic or text). All campaigns ranging from the ones using simple text to those with attractive videos can be grouped under display advertising.

Most successful display advertising campaigns use a clever combination of images, text, gifs, and videos to stand out on the internet and send their message across to the targeted audience. Marketers can play around with language, design, shapes, and sizes of banners to create engaging display ads.

So, now that you have your answer to ‘what is display advertising?’, let’s explore the concept in-depth.

The Display Advertising Targeting Process

One of the most vital features of display advertising is its ability to target specific sections of the audience that match parameters based on the advertiser’s requirement. The display advertising targeting feature ensures that your ad reaches the right audience, and ad spend isn’t wasted on a demographic that isn’t interested in your product/service.

The multitude of options available when it comes to display ad targeting can be overwhelming; it is important to have clarity about the kind of demographic that you want to cater to, and accordingly choose from available targeting options.

Display advertising targeting is a complex process – here’s a look at some of the steps you can take to maximize this feature:

1. Define your demographic: You can segment the audience based on their basic demographic details like age, gender, interests, etc.
2. Identify target keywords: This allows you to reach the target demographic based on selected keywords as per your product or service. The display ad networkOpens a new window will match your keywords with words/phrases present in the publisher’s site where your ad will be displayed.
3. Zero-in on the topic: This feature lets you choose a group of websites that fit a specific topic/category within which your business operates.
4. Formulate the ideal placement: You can choose the website you want your display ads to run on. For example, if you’re targeting customers of a specific car variant, you can display the ads on articles related to that model, or even on a product review page.
5. Show ads based on interest: Google collects data on its users’ behavior, and depending on what users are searching for, you run display ads that resonate with specific interest areas. For example, a car enthusiast may be researching tires, car stereo systems, etc. Interest-based display ad targeting will place your ad on all relevant webpages.
6. Retarget based on past behavior: Also known as retargeting, this display ad targeting feature lets you target users who have already visited your website, thereby reinforcing the brand’s impact and recall.

Types of Display Advertising

Effective display advertising management relies on visuals to get the core message of the campaign to the audience. The aim is to make sure that users are automatically drawn to an ad when they visit a website or a social media platform. So, here are a few different options you should experiment with when outlining your display advertising management strategy.

Banner ads

Banner ads are the most common display advertising format, as they clearly stand out on any webpage. They are named after their shape, which is banner-like. They are nothing more than hyperlinked, image-based ads in the shape of a strip. They are usually placed on the top of a webpage to immediately draw the user’s attention.

Rich Media

Considering that roughly 30% of Internet users find traditional banner advertising distracting, advertisers are exploring more innovative ways to display their ads. Use of rich media is one such new tactic that involves using interactive elements such as video, audio, and clickable elements to make the advertisement more engaging.

Interstitial ads

These are ads that appear as a separate webpage before you are directed to the original page that you wanted to visit on the internet. They are effective in capturing the user’s attention as they take up the entire screen.

Video ads

When it comes to display advertising costs, video ads are slightly more expensive but worth it. Platforms like YouTube and Instagram have made it convenient for marketers to run video ads and attract a lot of attention and engagement.

Managing Display Advertising

Display is a significant investment for any company, so it is only natural that you’d want the maximum Return on Investment (ROI) from your display ad costs. Therefore, it is crucial to measure how your display advertising management strategy is working out. Here are four Key Performance Indicators (KPI) to help quantify the outcomes of display ad management:

1. Reach

Measuring the reach of your ad accurately means obtaining figures on how many users saw the ad. This is reflected as the unique number of views on your display ad. You can monitor the reach of your ad and assess the effectiveness of your display ad management and targeting effort. If ads are not reaching the desired audience, it is advisable to readjust your targeting parameters.

2. Impressions

Simply put, an impression is the number of times an ad has been “served” to a user on a website or placement. Every time an ad is displayed, it counts as an impression. Once you have successfully quantified this, you can map ad performance against the conversion rates. If it seems that your impressions are growing but your conversion rate isn’t, you may need to rethink your display ad management plan.

3. Click-through rate

A crucial indicator of engagement, click-through rate indicates the number of people who have clicked on your ad. Mathematically, it is the ratio of impressions to clicks. For example, if your ad receives 2,000 impressions and you generate 200 clicks, that’s a click-through rate of 10%. Low CTRs are indicators of the need to adopt a new display ad management strategy or relook at targeting formulas.

4. Conversion rate

This is the most important metric to consider because, at the end of the day, conversion is the main objective of running ads. This rate is a quantification of the number of people who click-through to your landing page and perform a definitive action such as downloading your app, opting-in to a newsletter, or buying a product.

Learn More: What Is CPM (Cost Per Mille, Cost Per Thousand Impressions)?Opens a new window

Display Advertising Networks: The Bedrock for Display Ad Management

A display ad network is defined as a platform or tool that lets you manage how your ads are distributed across publishers, content categories, audience segments, and other channels of engagement. It acts as a connector between your ad content and the customer’s consumption platform.

There are several display ad networks to choose from – the best example is probably the Google Display Network. It allows you to find new audiences based on existing customer profiles, and design retargeting campaigns using data and increased conversion for your display ads. It also has a nifty automation feature that lets you boost returns from your display advertising costs. Using automation, Google’s display ad management platform optimizes audience selection and automates your investment per ad to optimize display ad costs.

Several brands around the world have leveraged display ad networks for incredible business outcomes, and there are several display advertising case studies that reaffirm this potential. For example, a London-based hospitality brand leveraged display ads to increase revenue by 44%. The company used TripAdvisor’s display advertising management tool to zero in on the perfect audience for their ads. An intelligent combination of lifestyle photos and in-room imagery reaffirmed the brand voice, cutting through what the hotel measured was a 5,000+ ad clutter viewed by consumers every day. As a result of this display advertising case study, the brand was able to optimize its digital ad management strategy for better upselling and cross-selling, and the returns were 8X times the initial display ad costs!

This is only scratching the surface – ResortQuest was able to use Google’s display ad builder to achieve a 50% higher click-through rate. Similarly, Babson College used the Google display ad network to reduce cost per action by an impressive 67%, while also increasing volumes. There are numerous such display advertising examples out there to help inspire you and optimize your next campaign.

Getting Started With Display Ad Management

If you find it challenging to get the desired outcomes from your display ad campaign, ask yourself the following questions:

1. Is the copy simple and comprehensive?

A majority of the audience viewing your ads will have limited time and attention. They are consuming a lot of content already, so your ad needs to be crisp and direct. Display ads let you identify and target specific demographic and psychographic profiles of users, so make sure to formulate the copy accordingly.

2. Is the color scheme and design in sync with the brand image?

The design and color scheme selected during display ad management can make a lot of difference. There are incredible psychological links between colors and audience behavior. You can study them and use it to your advantage while designing the graphics for your display ads. It is advisable to keep your campaign clutter-free, and the textual content should be clearly visible.

3. Am I using too many formats for my ad?

Remember, less is more when it comes to display advertising management. With so many options to choose from, you might just be tempted to mix and match formats to get better results. A successful campaign, however, is minimal, direct and crisp. Be it the copywriting or the images you use, make sure to not go overboard in a bid to grab attention.

Benefits of Display Ads: Key Takeaways for Marketers

Display ads are now a marketing staple, taking center-stage in most ad campaigns and letting you reach a vast global audience. Despite having been around for a while, the technology shows no signs of slowing down. This is because of the following benefits:

Visually appealing – Since these ads are usually graphic/visual, advertisers can experiment with different designs, shapes, sizes, and formats to identify what works and what doesn’t.
Diverse options – You can be as traditional or as out of the box as you wish to be when it comes to display ads.
Effective targeting – The display advertising targeting lets you reach audiences as per diverse parameters, ensuring optimum engagement.
Enables retargeting – The retargeted display ad that you show them acts as the slight push they needed to come back to your website.
Analytical insights – Using a tool like Google Analytics for display advertising management, you can track how your ads are performing.

Learn More: What Is Paid Media? Definition, Types, Process with Examples

We hope this helps you take key decisions about online display advertising and the costs/benefits associated with it. With a robust understanding of all the targeting capabilities that display ads offer, you can design a campaign that’s true to your brand voice – yet resonates with the widest possible cross-sections of users.

Are you ready to start your display ad management journey? Tell us on TwitterOpens a new window , FacebookOpens a new window , and LinkedIn.Opens a new window We would love to hear from you!