Display advertising is one of the most widely used digital ad formats, enabling brands to reach users through visual content across websites, apps, and platforms. It combines creative elements like images, video, or animation, with targeting capabilities to drive measurable outcomes.
This type of advertising is multi-faceted, serving campaigns from the top of the funnel, awareness to conversions, and it plays a central role in multi-channel marketing strategies. Read on this glossary page to understand what display advertising is, its types, and uses.
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Display advertising is a form of advertising where ads appear in predefined spaces on webpages: typically located at the top, middle, side, or bottom. These placements may take various formats, including banners, pop-ups, native ads, or video. The ads are usually bought through ad networks or programmatic platforms, which match them with available inventory in real time based on targeting parameters, custom algo, and campaign goals.
Display ads enable brands to maintain a consistent presence across the internet while reaching large, targeted audiences. By combining user data, dynamic creative assets, and automated buying, advertisers can scale campaigns across multiple sites while targeting users by interest, behavior, or demographics. This approach supports both brand visibility and specific performance objectives.
Display advertising offers several tangible advantages that make it a core component of digital marketing strategies. Its capabilities span reach, targeting, creative expression, and performance measurement, enabling brands to engage audiences efficiently across the web.
Display advertising functions through a real-time process involving media buying, ad serving, and targeting. When a user loads a webpage containing available ad inventory, an ad exchange or demand-side platform (DSP) evaluates multiple bids from advertisers. These bids are based on factors such as the user’s browsing history, demographics, device type, and location. The DSP selects the most relevant and highest-bidding ad that matches the user’s profile and campaign parameters.
Once chosen, the ad is delivered to the page instantly, typically in milliseconds, ensuring minimal disruption to the user experience while maximizing the advertisers’ chances of conversion.
Display advertising comes in several formats, each with unique use cases and creative approaches:
Banner ads are static or animated image ads shown in standard sizes like 728×90 or 300×250 pixels. These are commonly seen at the top or sides of webpages.
Rich media ads are interactive formats that may include video, hover effects, or expandable elements to boost engagement.
Native display ads match the look and feel of the surrounding content to appear less intrusive.
Video display ads are short video clips embedded within display placements, often used on websites with video content or news.
Responsive ads automatically adjust size, format, and appearance to fit the screen and ad placement, improving scalability.
Display advertising is used at multiple stages of the customer journey to achieve different marketing objectives. In the awareness stage, it helps introduce new products or services to a broad audience.
During consideration, it supports retargeting efforts by re-engaging users who previously visited a website or interacted with a brand. For conversion, it promotes time-sensitive offers and incentives to drive immediate action.
Display ads also play a role in maintaining brand visibility in saturated markets. When combined with contextual or behavioral targeting, they enhance upper-funnel strategies by reaching users based on relevant content or demonstrated interests.
Despite its reach and flexibility, display advertising comes with a set of challenges that can limit its effectiveness and return on investment. These issues range from user behavior to technical limitations, and they require strategic solutions to overcome.
Ad blindness – Users may ignore standard banner placements due to overexposure. Over time, audiences become desensitized to familiar formats, making it harder for ads to capture attention unless they offer relevant content or engaging design.
Low click-through rates (CTR) – Many display ads see limited interaction, especially when poorly targeted or creatively weak. Without compelling visuals or messaging tailored to the audience, ads are easily overlooked.
Ad blocking – Increasing use of ad blockers reduces the visibility of display ads. This can prevent ads from reaching the intended audience, especially among younger or tech-savvy users who actively avoid intrusive advertising.
Viewability concerns – Ads below the fold or placed on low-quality sites may be rendered but never seen. Advertisers risk paying for impressions that have little to no real exposure, affecting campaign performance metrics.
