Display Ads: The Complete Guide to Digital Display Advertising

Display ads are visual online advertisements that appear on websites, apps, or social media platforms to promote products or services. In 2025, they’re a cornerstone of digital marketing, offering businesses a powerful way to reach target audiences and drive specific user actions through eye-catching visuals and strategic placement. 

With the help of our experts, we’ll outline how display ads work, share best practices for creating effective campaigns, and explore the top platforms driving success in display advertising. 

The Role of Display Ads in Digital Marketing 

Display ads leverage visual elements like images, videos, and pop-ups to engage audiences online. The primary goal is to attract attention and create awareness or interest in your brand’s products, services, and other offerings. 

Display advertising has many advantages:  

• Various ad styles: Display ads come in many types, formats, and sizes. Great diversity lets you choose the kind that will complement your marketing goals. 
• Attractiveness: Display ads are attractive and grab people's attention, quickly conveying complex brand messages and encouraging further engagement. 
• Reach potential: Campaigns on the Google Display Network appear on 35 million websites and apps, along with Google-owned properties like YouTube (80 billion monthly visits) and Gmail (1.8 billion global users).  
• Diverse targeting: You can target your desired audience according to their location, demographics, social media activity, and other differentiators. 
• Measurable success: You can easily monitor key performance metrics for display ads and adjust your strategy to broaden your reach and increase conversions. 

Digital display advertising has only one downside: people don't like ads. Many consumers find them intrusive, especially when they interrupt their browsing experience or appear overly repetitive. However, advertisers can mitigate this issue by focusing on creating engaging, high-quality ads that provide value to the people who see them. 

Personalization, relevance, and non-intrusive placements are key strategies to improve user experience and increase ad effectiveness, helping to overcome the inherent aversion some consumers have toward advertisements. 

6 Display Ad Formats 

Digital display ads come in various formats, each designed to engage users and achieve specific marketing goals. The primary types are: 

• Banner ads
• Interstitial ads
• Native ads
• Pop-up ads
• Video ads
• Rich media ads

1. Banner Ads

• Best for: Brand awareness and product promotions, such as seasonal sales, and discounts. 

Banner ads are the oldest and most widespread form of digital display advertising. Typically, you’ll see them at the top or on columns at the sides of web pages. They can be static, animated, or even a video, designed to capture attention and entice users to click on your landing page.  

2. Interstitial Ads

• Best for: Mobile apps, games, promoting in-app purchases or upgrades, and transitions between actions 

Interstitial ads are full-screen ads that appear during transitions, such as between app pages. They are highly attention-grabbing but must be timed carefully to avoid frustration. They’re great for enhancing brand visibility, but if they appear at inconvenient times, they can annoy users or cause them to ignore the ads. However, when placed thoughtfully, interstitial ads can convey powerful messages. 

3. Native Ads

• Best for: Content marketing and increasing user engagement; Perfect for promoting blog posts, articles, or sponsored content. 

Native ads blend seamlessly with the surrounding content, appearing as sponsored posts or recommendations. They’re popular options for advertisers because they provide a non-disruptive user experience. They also focus on engaging the audience with valuable and relevant content that aligns with the platform's user experience. 

4. Pop-up Ads

• Best for: Lead generation, retargeting, and collecting email addresses or offering limited-time discounts 

Pop-up ads are small windows that “pop up” in the foreground of the visual interface when users visit a webpage. They’re designed to capture attention and encourage actions like clicking, subscribing, or making a purchase. You can tailor pop-ups based on user behavior, geolocation, and past interactions to ensure they’re relevant and timely. 

5. Video Ads

• Best for: Storytelling, product demonstrations, and showcasing product features or customer testimonials 

Video ads are short, engaging video clips that play before, during, or after video content. Examples include YouTube ads that you can skip after a few seconds or a banner ad that contains a video. Videos are more engaging and memorable than other forms of advertising and will help you connect with audiences on an emotional level. 

6. Rich Media Ads

• Best for: High-impact campaigns and luxury brands or companies launching innovative products 

Rich media ads include elements like audio, video, animation, and other multimedia features to boost interactivity and user engagement. These are more effective and immersive than standard static ads, leading to 267% better performance. 

4 Main Types of Display Ads 

There are four main types of display ads in terms of how they appear to users. By recognizing the unique benefits and applications of each, you can create a more effective display ads strategy. 

• Personalized ads
• Retargeting ads
• Contextually targeted ads
• Site-placed ads

1. Personalized Ads

Personalized ads use data about individual users to deliver content that’s relevant to their interests, behaviors, and preferences. This data can include demographic information, browsing history, purchase behavior, and more. It is often used to enhance user engagement and drive conversions. 

The different types of audience targeting on Google Ads include:  

• Affinity audience targeting: These users have a strong interest in specific topics, like luxury travelers, sports fans, and car enthusiasts. By targeting these audiences, you can reach them based on their interests as they browse online. 
• Custom affinity targeting: Unlike predefined affinity audiences, custom affinity lists align more closely with the unique characteristics of the target customer base. These include specific interests, keywords, URLs, and apps that they’re likely to engage with. 
• Custom intent targeting: This allows you to target users actively seeking products similar to yours. The target group is narrower, but the users you’ll reach are more likely to convert. 
• Optimized targeting: This uses various signals to identify high-potential audiences and find users who match your Google Ads campaign goals. The system continuously learns and adapts to find better-performing traffic to improve campaign performance. 

2. Retargeting Ads

Retargeting ads are a subcategory of personalized ads. They allow advertisers to target users who visited your website but didn’t convert — i.e., didn’t purchase, subscribe to your service, or fill out a contact form. These ads are often used to recapture potential customers and reduce cart abandonment rates, appearing on various platforms, reminding them of their initial interest in your brand, and encouraging them to return.  

By targeting users who are already familiar with your brand, these ads often result in higher conversion rates compared to standard display ads. For instance, a travel booking site can retarget visitors who browsed flights but didn’t book, showing deals for their searched destinations. 

3. Contextually Targeted Ads

Contextually targeted ads are placed on websites or platforms based on the content being viewed by the user. It is often used to reach users in relevant environments. This ensures that the ads are relevant to the context of the webpage, increasing the likelihood of capturing the audience’s interest.  

Automated systems scan the content of the webpage for specific keywords, phrases, and themes. Based on the analysis, ads that match the context of the content are displayed. This alignment makes the ads more relevant and engaging for users.  

For example, if someone is reading an article about fitness, they might see ads for sports equipment or health supplements.  

4. Site-Placed Ads

Site-placed ads allow advertisers to reach specific audiences by leveraging the popularity and relevance of chosen platforms. It is often used to build brand visibility and reach niche audiences.  

You can choose websites, mobile apps, videos, and other ad units that align with your target audience’s interests and behaviors. Ads are then placed in designated slots on the chosen placements, such as banners at the top of the page, sidebars, or within the content itself. 

For instance, a gaming company can display ads on popular gaming platforms or YouTube channels to engage with avid gamers. 

How To Create an Effective Digital Display Advertising Campaign in 8 Steps  

Display ad campaigns, like pay-per-click (PPC) strategies, require tried-and-true techniques to convert and deliver excellent return on investment (ROI): 

• Step #1: Set SMART goals
• Step #2: Highlight your competitive advantage
• Step #3: Target the right audience
• Step #4: Create simple yet effective ads
• Step #5: End with a compelling CTA
• Step #6: Optimize your landing page for conversions
• Step #7: Ensure a positive user experience
• Step #8: Monitor and optimize your ads

Step #1: Set SMART Goals

SMART (specific, measurable, achievable, relevant, and time-bound) goals provide a focused direction for your campaign. They help you understand exactly what you want to achieve, whether it's: 

• Increasing brand awareness and visibility: Example – Aim to increase brand impressions by 25% over the next quarter. 
• Generating more quality leads: Example – Acquire 500 new leads within 60 days with a target cost per lead (CPL) of $15. 
• Retargeting leads who didn't convert: Example – Achieve a 10% conversion rate on a retargeting campaign within 30 days. 
• Boosting conversions: Example – Increase eCommerce sales by 20% during a promotional campaign. 

By setting quantifiable targets within a set period, you can track your progress and determine the effectiveness of your campaign. Furthermore, goals that align with your overall business objectives ensure that your display ads contribute to your broader marketing strategy. 

Step #2: Highlight Your Competitive Advantage

Determine what sets your product or service apart from competitors: unique features, better pricing, innovative technology, or other specific characteristics. Focus on these qualities as you craft a concise and persuasive brand message that clearly communicates your unique selling proposition (USP).  

For instance: 

• A software company highlights its 24/7 customer support and faster loading speeds compared to competitors. 
• A skincare brand emphasizes its use of 100% organic ingredients, differentiating itself from chemical-heavy alternatives. 

Ensure your ad copy highlights the benefits that only your brand can provide. In a crowded online market, standing out is crucial for capturing the attention of potential customers.  

Step #3: Target the Right Audience

Targeting the right audience ensures your ads are shown to people who are most likely to be interested in your products or services. This reduces wasted ad spend and increases ROI. It also enhances user experience and reduces the likelihood of ad fatigue or annoyance. 

Here are some best practices to target the right audience: 

• Create detailed profiles of your ideal customers, including demographic information (age, gender, location, income), psychographic details (interests, values), and behavioral traits (online activities, purchase history). 
• Use data from your website, social media, and past campaigns to understand your audience’s behavior and preferences. 
• Divide your audience into smaller segments for more personalized and relevant ad targeting. 
• We discussed the different types of audience targeting above — a mix of custom affinity, intent, and contextual targeting will help you capture the right users at the right time and increase conversions. 

Examples of targeting the right audience: 

• Demographics: A luxury watch brand targets users aged 30–55 with high-income levels. 
• Psychographics: A fitness app targets users interested in wellness and healthy living. 
• Behavioral data: An online course targets users who recently visited education-related websites. 

Step #4: Create Simple Yet Effective Ads

Simple ads are easier for users to understand at a glance, and clear messaging ensures your audience quickly grasps the value of your offer. Here are some tips for creating simple yet effective digital display ads: 

• Ensure your audience can comprehend your advertisement; speak in their language. 
• Focus on one main message or offer, as too much information can overwhelm users and dilute your message. 
• Write catchy and appealing ad copy and enrich it with a sense of urgency. 
• Use high-resolution, clutter-free images with attention-grabbing details. 
• Design ads that look good on all devices, including desktops, tablets, and smartphones. 

Here are some examples of simple yet effective ads: 

• A food delivery service: “Dinner in 30 minutes or less – Order Now!” with a high-quality image of your meals. 
• An eBook campaign: “Download Your Free Guide Today – Limited Time Offer!” with a bold CTA button. 

Step #5: End With a Compelling CTA

Your ad's call-to-action (CTA) guides users toward the next step in the conversion process and increases the likelihood of achieving your campaign goals. Without a clear CTA, even the most visually appealing ads can fail to convert. 

To craft a compelling CTA, use clear and concise language that tells users exactly what action to take, such as “Shop Now,” “Learn More,” or “Sign Up.” Use strong, action-oriented verbs to encourage an immediate response. Ensure your CTA stands out visually by using contrasting colors and placing it prominently within your ad. 

Examples: 

• “Claim Your Free Trial Now” for SaaS products. 
• “Book Your Free Consultation” for a service-based business. 
• “Shop the Sale – Up to 50% Off” for an eCommerce store. 

Step #6: Optimize Your Landing Page for Conversions

A landing page is the final destination where users decide whether to convert or not. Follow these landing page best practices and conversion optimization tips to push consumer decisions in your favor: 

• The landing page should have a purposeful design. For instance, a headline such as, “Join Today – Your First Month Free” should have a sign-up form above it. 
• Include an attractive image that illustrates the offer. 
• Write short, simple, and compelling copy. 
• Include clear and concise CTA. 
• Highlight the CTA button. 
• Make your offer hard to resist. 
• Use lead forms above the fold and require only necessary information. 

Step #7: Ensure a Positive User Experience

When users have a seamless and enjoyable interaction with your ads, they are more likely to engage with your content, leading to higher conversion rates and long-term customer loyalty.  

To achieve this:  

• Create display ads that are visually appealing, relevant, and non-intrusive.  
• Place them in locations that complement the browsing experience and don’t disrupt it.  
• Make sure they load quickly across all devices to avoid frustrating delays. 

Step #8: Monitor and Optimize Your Ads

Without performance monitoring, your ads may become less effective over time, leading to wasted spend and missed opportunities. Use tools like Google Analytics to gather data on how your ads are performing. When you know which display ads drive the most engagement and conversions, you can adjust your budget accordingly. 

Testing different variations of your ads can also help determine what resonates best with your audience. This continuous process of monitoring and optimization will help you maximize your budget and achieve your overall goals. 

4 Best Display Advertising Platforms 

Here are some of the most prominent platforms where your digital ad displays can go live: 

• Google Display Network
• Meta Ads
• X Ads
• AdRoll
• Comparison Table of Display Advertising Platforms

1. Google Display Network

The Google Display Network (GDN) is the most popular ad display platform. Considering that Google collected $237 billion in ad revenue in 2023 — nearly 20x more than its closest competitor, Microsoft — you may be sure Google takes advertising seriously. Your ads can appear within its network of millions of websites and apps. It also accommodates many different ad formats and targeting strategies. 

Here are some actionable insights for the GDN platform: 

• Use Google’s contextual targeting to display ads on websites that align with your product or service categories to increase the likelihood of reaching an interested audience. 
• Target users who previously visited your website but didn’t convert by using GDN’s remarketing options 

2. Meta Ads

With every third or fourth post on your Facebook feed being sponsored, it's clear this platform naturally incorporates ads to grab the attention of its billions of users. In terms of display ads, Meta is Google's greatest rival — it provides just as many targeting and formatting options. It provides highly targeted advertising options across Facebook, Instagram, Messenger, and the Audience Network. 

Here are some best practices for using Meta Ads: 

• Upload your customer lists to retarget existing customers or create lookalike audiences to find new, similar prospects. 
• Showcase multiple products or features in a single ad to boost engagement and conversion rates. 
• Compare ad performance across Facebook, Instagram, and Messenger to determine the best-performing platform for your audience. 
• Incorporate authentic user reviews or content into your ads to build trust and improve click-through rates.  

3. X Ads

X, formerly known as Twitter, boasts over 600 million active users, making it another excellent advertising option for increasing reach and sales. X Business offers a lot of ad formats — video, image, textual, or a combination of all three — which you can use depending on your advertising goals. You can target conversations, events, or audience groups to expand your ad reach. 

Here are some best practices for using X Ads: 

• Use trending topics or hashtags to position your ads within relevant conversations and gain visibility. 
• If you have high-performing organic tweets, amplify them through paid promotions to attract a broader audience. 
• X's real-time nature makes it ideal for flash sales or event-based advertising. Target ads around specific events or product launches. 

4. AdRoll

AdRoll is a comprehensive display advertising platform with advanced AI and machine learning algorithms that optimize ad delivery. It’s partnered with over 500 networks (eBay, Microsoft Advertising Exchange, AdThrive) and exchanges (AppNexus, Facebook, DoubleClick, Yahoo, Rubicon) and provides excellent reach for your display ads. 

Here are some actionable insights for the AdRoll platform: 

• Use AdRoll’s ability to retarget users across multiple networks, including social media, search engines, and display networks. 
• Use AdRoll’s attribution modeling to identify which platforms or campaigns drive the most conversions.

Comparison Table of Display Advertising Platforms 

5 Key Metrics To Measure Display Ad Performance 

Monitoring your display advertising campaign results gives you insight into its effectiveness. If results aren't satisfying, you can easily adjust parameters to improve targeting and increase reach and conversions. 

Digital advertising uses some of the same metrics as PPC tracking: 

• Impressions: Every time a website displays your ad, it counts as an impression. Total impressions should grow as your ad campaign progresses. If it drops, that is a sign you need to readjust targeting or ad copy. 
• Reach: Reach is closely related to impressions. While impressions count the number of times an ad is displayed on any platform, reach is the number of people who actually saw the ad. 
• Click-Through Rate: This is the percentage of users who clicked on your display ad after viewing it. If your CTR is low, it means your ad strategy should be improved. 
• Conversion Rate: This shows the percentage of people who perform the desired action, whether it’s to purchase, subscribe, register, etc.  
• Cost: You can track the campaign's overall operating expenses, cost per click (CPC), and cost per thousand impressions (CPM). Display advertising primarily uses CPM metrics. 

Display Ads: Key Takeaways 

Like all other forms of advertising, display ads require a deliberate strategy to reach their maximum potential. Consider the uniqueness of your brand and choose the proper demographic for whom your message will resonate. An appealing offer and satisfying user experience will help you reach your display advertising campaign goals. 

To take display ad performance to another level, partner with one of the top PPC marketing agencies. Their expertise and extensive knowledge about creating, monitoring, and optimizing digital display ads will help you capture and convert more leads. 

Display Ads FAQs 

1. How important is ad design in display advertising?

Ad design is crucial for capturing attention and driving engagement. High-quality visuals, clear messaging, and a strong call-to-action can significantly impact ad performance. 

2. How can I optimize my display ad budget?

To optimize your budget, focus on high-performing ad formats, target the right audience, and continuously test and adjust your campaigns. 

3. What are the latest trends in display advertising for 2025?

Trends include increased use of AI and machine learning for ad optimization, more interactive and immersive ad formats, and greater emphasis on privacy and data protection in targeting strategies.