All About Display Advertising: How to Use Display Ads

Display advertising is a form of digital marketing on web pages, apps, or social media channels. Digital display ads may populate as images, banners, videos, pop-ups, or text ads, among other ad formats. Generally, businesses pay for display ad campaigns on a cost per click (CPC) or pay per click (PPC) basis. Each time someone clicks on one of these display marketing ads, the company pays an advertising agency a set amount. Companies can also optimize ads to increase conversion rates.

Display advertising and native advertising are forms of digital advertising. The difference is in the execution of strategy:

• Placement: For native campaigns, ads appear within the flow of regular content on a user’s mobile phone, tablet, or computer. This contrasts with more traditional display advertising—like pop-ups or banner ads—as native advertising focuses on downplaying its very nature as an ad.
• Tone: Display ads are more clearly advertisements, while native ads feel like an extension of the content a user was already consuming. Examples of native ads might include a sponsored post or an article written by a company for an online publisher. The Federal Trade Commission (FTC), Interactive Advertising Bureau (IAB), and other regulatory agencies sometimes step in to ensure native ads remain honest about the fact they’re advertisements due to how well they blend in with other content.
• Goal: Both types of ads aim to generate sales, but display ads generally are about garnering impressions and strong click-through rates (CTR), and tailored native ads can lead to brand awareness for a target audience. Each will still have a clear call to action, or CTA.

Digital advertising campaigns can consist of different types of display ads with various ad sizes and formats:

1. 1. Video ads: Businesses can place preview videos or other non-static ads in feeds to create a more compelling form of online advertising.
2. 2. Interstitial ads: These ads appear when users click on links for specific web pages, popping up before the user can view the intended content. Generally, the user can close out of the ad, or the ad will disappear after a few seconds.
3. 3. Banner ad: These ads appear at the tops of web pages and look like a banner hanging over the main content of the webpage.
4. 4. Pop-up ads: These ads appear at unexpected moments during the browsing experience, hoping to capture the attention of potential customers more readily.
5. 5. Rich media ads: Unlike text ads, rich media ads combine more sophisticated features, like video, audio, and interactive elements, to invite higher engagement rates from users.

Display advertising is a popular feature of many marketing strategies. Some of the advantages include:

1. 1. Clear metrics: Display ads allow brands to analyze ad performance clearly by examining conversion and click-through rates.
2. 2. Remarketing: Ads can serve as retargeting campaigns for users who have already visited specific websites, allowing companies to retarget visitors to bring them back to a page.
3. 3. Demographic targeting: Demographic targeting is a key advantage of display ads. Companies can target users based on their interests, what mobile apps they use, or what web pages they visit.
4. 4. Brand recognition: If ads pop up in a few different places, customers can get to know brands over time. This can lead to future purchases.
5. 5. Pricing: This form of advertising can be cost-effective since brands can pause campaigns and set fixed rates for price per click. Prices can increase based on targeting options.

Display advertising campaigns can present some disadvantages to your marketing efforts:

1. 1. Consumer frustration: Pop-up ads can disrupt a customer’s experience on a site, especially if the ad is large. This can lead to negative brand associations.
2. 2. Banner blindness: Ads on web pages are typical, and users might ignore elements on web pages that appear as ads. This tendency, known as banner blindness, can lead to low engagement with ads.
3. 3. Lower CTRs: Display ads generally have lower click-through rates than search ads. Companies need to execute multiple campaigns—like search engine optimization alongside programmatic ads—so that ad spend maximizes sales and page views.

See how to incorporate this advertising format into your marketing to up your campaign performance, increase e-commerce, and improve audience targeting:

1. 1. Keep your ads clean and straightforward. Create an alluring ad to attract the right audience. Complex ads that use audio and video should minimize words and graphics.
2. 2. Share an offer. Incentivize your products or services by adding promotional language and a clear call to action to compel viewers to click.
3. 3. Make the landing page easy to use. User experience is critical, and websites must be easily navigable after viewers click an ad. Keep the content direct; users express interest via their click, so work to convert the interest into a sale directly.
4. 4. Analyze performance as you go. It’s helpful to analyze how a campaign is performing and make adjustments. Examine the number of impressions, the click-through rate, and page visits to understand if your efforts are paying off.

Learn more about advertising and creativity from Jeff Goodby & Rich Silverstein. Break rules, change minds, and create the best work of your life with the MasterClass Annual Membership.