What is Display Advertising?

Published November 8, 2023

Display advertising is a type of online advertising that uses visual elements to promote products, services, or brands. These visual ads, known as “display ads,” can appear on websites, social media platforms, and other digital channels. Display ads are designed to capture the attention of the audience and convey a marketing message effectively. They can be used for a variety of purposes, such as brand awareness, lead generation, and product promotion.

Display ads are versatile and customizable, which makes them a powerful marketing tool. Businesses can use display ads to create visually engaging and interactive ads that are tailored to their specific target audience and goals. The success of display advertising campaigns depends on a number of factors, including the ad design, targeting accuracy, and the relevance of the message to the audience.

Different Types of Display Advertising

There are many different types of display ads, each with its own strengths and weaknesses. Here is a brief description of each type:

  1. Banner Ads:Banner advertising is a popular type of online advertising that uses images or videos to promote products, services, or brands on websites, apps, or other digital platforms. Banner ads are often rectangular or square in shape and appear at the top, bottom, sides, or within the content of a webpage. They are designed to be visually appealing and engaging, and often use a combination of text, images, and animation to convey their message. Banner ads can be used for a variety of purposes, such as building brand awareness, generating leads, and promoting products or services. They are a versatile and effective marketing tool that can be used by businesses of all sizes.
  2. Video Ads:Video ads are a type of online advertising that uses short video clips to promote products, services, or brands on websites, social media platforms, and other digital channels. They are a highly engaging and effective way to reach potential customers and generate leads and sales.
  3. Rich media Ads: Rich media ads are a type of online advertising that go beyond traditional static banner or text-based ads. They use interactive and dynamic multimedia elements to engage users and provide a more immersive and engaging advertising experience. Rich media ads can include a variety of elements, such as video, animations, audio, interactive games, and expandable features, making them visually appealing and interactive.
  4. Interstitial Ads:Interstitial ads are full-screen ads that appear between two pages or during transitions in mobile apps and websites. They show up at natural break points, like when you’re waiting for a page to load, moving between pages, or in between levels of a game. Interstitial ads are designed to grab your attention and deliver a targeted message. Interstitial ads can be effective, but they should be used carefully. If they’re too disruptive or intrusive, they can annoy users. But when they’re done right, interstitial ads can provide value to users and help businesses reach their target audience.
  5. Pop-up and Pop-under Ads:Pop-up and pop-under ads are two types of online advertising that display additional browser windows or tabs containing advertisements when a user visits a website. While they are similar in concept, they differ in how they are displayed and how users interact with them.Pop-up ads appear in a new browser window on top of the website that the user is visiting. The user must close the pop-up window in order to continue browsing the website. Pop-under ads, on the other hand, appear in a new browser tab behind the website that the user is visiting. The user may not even notice the pop-under ad until they close their browser or switch to the tab containing the ad.
  6. Native Ads:Native ads are a type of online advertising that are designed to blend in seamlessly with the content and design of the platform on which they appear. These ads are meant to look and feel like they are a natural part of the content, making them less intrusive and more engaging for users. Native advertising is commonly used on a variety of digital channels, including websites, social media, and mobile apps.
  7. Retargeting Ads:Retargeting ads, also known as remarketing ads, are a type of online advertising that targets people who have already visited a website or app but didn’t complete a desired action, such as making a purchase or signing up for a newsletter. Retargeting ads work by following users around the web, showing them ads for the products or services they were interested in before. Retargeting ads can be very effective for encouraging people to return to a website and complete the desired action.

How Display Advertising works

Ad monetization is the process of generating revenue from ads displayed on a website, app, or other digital platform. It involves a variety of components and strategies.

Advertisers and Publishers:
  • Advertisers: Companies or individuals looking to promote their products or services through advertising create advertisements, known as creatives, in order to reach specific target audiences. Advertisers will pay a fee in order to meet their marketing goals more easily.
  • Publishers:Publishers are individuals or organizations who offer platforms for advertisers to place advertisements. This could be website owners, app developers, content creators or media organizations with an audience. Publishers partner with advertisers to display advertisements on their platforms while earning revenue through those advertisements.
Bidding Systems and Auctions:
  • Real-time Bidding Systems(RTB):Real-time bidding (RTB) is an increasingly popular method for placing ads. Advertisers take part in auctions to bid on impressions in real time; the highest bidder’s ad will then appear before users who click or view it, with them paying their bid amount when clicked or seen.
  • Auctions:Programmatic advertising automates the buying and selling of digital ad space. Advertisers use demand-side platforms (DSPs) to bid on ad space, while publishers use supply-side platforms (SSPs) to sell it. This real-time auction system ensures that ads are placed in the most relevant and effective locations, and it also helps to optimize pricing for both advertisers and publishers.
Targeting and Personalization:
  • Targeting:Advertisers can define their target audience based on various criteria, such as demographics, interests, behavior, and location. Advertisers can select where and to whom their ads are displayed.
  • Personalization: Advertisers often personalize ad content to make it more relevant to individual users. This can improve engagement and conversion rates. Personalization is achieved through user data analysis and dynamic creative optimization.
Revenue Models (CPC, CPM, CPA):
  • CPC (Cost-Per-Click):Advertisers pay publishers whenever a user clicks on their ad. This model is common for search engine advertising and some display advertising.
  • CPM (Cost-Per-Mille): Advertisers pay publishers for every thousand ad impressions, regardless of whether users click on the ads or not. This is a common model for display and video advertising.
  • CPA (Cost-Per-Action): Advertisers pay when a specific action is taken, such as a sale, lead or download. This model is used in affiliate marketing and performance-based advertising.
Ad Placement and Formats:
  • Ads Placement:Publishers determine where ads appear on their platforms. Common ad placements include banner ads, in-feed ads, interstitials, video ads, and more. Ad placement can impact user experience and engagement.
  • Ads Formats:Advertisers can create a variety of ad formats, including text ads, display ads, video ads, native ads, and more. The choice of ad format depends on the platform and campaign goals.

What are the Benefits of Display Advertising?

Here are the benefits of ad monetization explained in different points:

Generating Revenue:

Ad monetization is a great way for content creators and website owners to make money online. It works by displaying ads on their platforms and earning money when people click on them or see them. This can be a significant source of income, enabling creators to keep their websites and blogs running and create great content. You can also read our article on steps to boost your website revenue.

Supporting Content Creators:

Ad monetization directly supports content creators by compensating them for their hard work and creativity. It provides a means for artists, bloggers, YouTubers, and other digital content producers to monetize their content and receive fair compensation. This financial support motivates creators to invest more time and resources in their projects, resulting in better content and a more prosperous digital experience for their audiences.

Maximizing Audience Engagement:

Ad monetization implemented thoughtfully can increase audience engagement. Relevant and non-intrusive advertisements that cater directly to their users’ interests add value by offering products or services of interest; this leads to longer user sessions, increased interaction, and loyal viewership for content creators alike. By matching ads with users’ interests, content creators can create a win-win scenario in which both audiences benefit from relevant recommendations. In contrast, their creators gain from increased viewership and viewer loyalty.

Analytics and Performance Tracking:

Ad monetization provides content creators invaluable analytics and performance tracking tools, providing valuable insight into campaign performance, user behavior, and audience demographics. Through analysis of this data, content creators are better informed to optimize ad strategies, content placement, and targeting to increase revenues while increasing user satisfaction – potentially leading to higher user satisfaction ratings due to better monetization results and enhanced revenue opportunities.

Challenges and Considerations comes in Display Advertising

Here are some of the challenges and considerations associated with ad monetization explained in different points:

Ad Blockers:

Ad blockers present a significant challenge to advertising monetization efforts. These browser extensions and software block or filter advertisements, preventing them from being displayed to users. As a result, content creators and advertisers may lose out on potential revenue. Advertisers need to find ways to work around ad blockers or deliver content that is so engaging and valuable that users don’t want to block it.

Banner Blindness:

Banner blindness refers to an issue where users become used to disengaging with traditional display advertisements due to their placement and repetitiveness, leading them to ignore traditional banner ads that take the form of banners. This presents advertisers with the challenge of developing engaging ad formats which capture users’ attention without becoming intrusive; content creators should bear this in mind when designing placements and formats for ads.

Ad Fraud:

Ad fraud is a major problem in the digital advertising industry. It involves advertisers being tricked into paying for fake clicks, impressions, and traffic. Ad fraud can waste advertising budgets and skew performance metrics. Advertisers and content creators need to take steps to protect themselves from ad fraud, such as using fraud detection tools and working with reputable ad networks.

Privacy and Data Regulations:

Data privacy and regulations, such as GDPR and CCPA, require advertisers and content creators to be cautious about the data they collect from users for ad targeting. They must obtain user consent for data collection and processing, ensure data security, and adhere to legal requirements. Failure to comply with these regulations can lead to legal consequences and damage to brand reputation.

Conclusion – What is Display Advertising

Display advertising is a constantly changing landscape, with a focus on user-centric design and targeted personalization. It remains a relevant and powerful tool in digital marketing, providing businesses with a way to reach and engage their target audiences effectively.

As technology advances and consumer behavior evolves, it is essential to stay adaptable and follow best practices in order to succeed in the dynamic world of display advertising. Key takeaways include the importance of compelling design, audience segmentation, landing page optimization, A/B testing, and mobile responsiveness in creating ads that drive results and contribute to overall marketing goals.