Display advertising is one of the most widely used and visually recognizable forms of online advertising. From banner ads on websites to rich media placements inside mobile apps, display advertising plays a critical role in building brand awareness, supporting retargeting strategies, and driving conversions across the digital ecosystem.

This article provides a complete, in-depth explanation of what display advertising is, how it works, the most common formats, real-world examples, and when businesses should use it as part of their online advertising strategy.

Understanding Display Advertising

Display advertising refers to visual-based ads that appear on websites, mobile apps, and social platforms. Unlike search advertising, which targets users actively searching for something, display advertising reaches users as they browse content online.

These ads typically include:

• Images

• Graphics

• Text

• Video

• Interactive elements

Display advertising focuses on visibility and engagement, often appearing alongside editorial or entertainment content.

How Display Advertising Works

Display advertising relies on ad networks and platforms that connect advertisers with publishers.

The general process:

1. Advertisers create visual ads

2. Ads are uploaded to an ad platform

3. Targeting criteria are defined

4. Ads are displayed on partner websites or apps

5. Users see, click, or engage with the ads

Most display advertising is bought through automated systems that match ads with available placements in real time.

Display Advertising vs Other Ad Types

Display advertising differs from other online ad formats in important ways.

Display vs Search Advertising

Search ads:

• Triggered by keywords

• Appear in search results

• Capture active intent

Display ads:

• Appear during browsing

• Build awareness

• Influence consideration

Display advertising is often used earlier in the buyer journey.

Display vs Social Advertising

Social ads:

• Appear within social feeds

• Leverage platform-specific engagement

Display ads:

• Appear across many websites

• Reach users outside social platforms

Both formats complement each other when used strategically.

Common Display Advertising Platforms

Display advertising can run across many platforms.

Popular options include:

• Google Display Network

• Programmatic ad exchanges

• Native ad networks

• Mobile ad networks

Each platform offers different reach, formats, and targeting capabilities.

Types of Display Advertising Formats

Display advertising comes in a wide variety of formats. Choosing the right format depends on goals, audience behavior, and creative resources.

Banner Ads

Banner ads are the most traditional display format.

They typically:

• Appear at the top, bottom, or sides of webpages

• Include images and text

• Link to landing pages

Common banner sizes include leaderboard, rectangle, and skyscraper formats.

Responsive Display Ads

Responsive display ads automatically adjust their size, layout, and appearance to fit available ad spaces.

Benefits include:

• Broader reach

• Easier creative management

• Better performance optimization

These ads adapt to different screens and placements.

Image Display Ads

Image ads focus on strong visuals to capture attention quickly.

They often:

• Highlight products or services

• Use branding elements

• Deliver simple messages

Image ads work well for awareness and retargeting campaigns.

Video Display Ads

Video display ads use motion and sound to engage users.

They can appear:

• In-stream

• Out-stream

• Embedded within content

Video ads often generate higher engagement than static formats.

Rich Media Ads

Rich media ads include interactive elements such as:

• Animations

• Expandable panels

• Games

• Embedded forms

These ads encourage deeper engagement but require careful design to avoid disruption.

Interstitial Ads

Interstitial ads appear between content transitions, such as between pages or app screens.

They:

• Occupy the full screen

• Demand attention

• Work well on mobile

Because they are intrusive, they must be used sparingly.

Native Display Ads

Native display ads blend into the surrounding content.

They:

• Match the look and feel of the platform

• Appear less disruptive

• Often perform better than traditional banners

Native ads are commonly used in content-driven environments.

Display Advertising Examples

To understand display advertising in practice, consider these real-world examples.

Brand Awareness Campaign

A clothing brand runs image display ads on fashion blogs and lifestyle websites to introduce a new collection.

Goal:

• Increase brand recognition

• Drive website visits

Retargeting Campaign

An online retailer shows banner ads featuring products users previously viewed.

Goal:

• Re-engage visitors

• Recover abandoned interest

App Promotion Campaign

A mobile app company runs interstitial ads in gaming apps.

Goal:

• Drive app installs

• Reach mobile-first users

Seasonal Promotion Campaign

A travel company runs video display ads promoting holiday deals.

Goal:

• Inspire travel planning

• Capture seasonal demand

Targeting Options in Display Advertising

Display advertising offers advanced targeting capabilities.

Common targeting methods include:

• Demographics

• Interests

• Topics

• Contextual targeting

• Behavioral targeting

• Retargeting

Precise targeting improves relevance and reduces wasted impressions.

Contextual Display Advertising

Contextual targeting places ads on pages related to specific topics or keywords.

For example:

• Fitness ads on health websites

• Finance ads on business blogs

This ensures alignment between content and advertising message.

Behavioral Display Advertising

Behavioral targeting uses past user behavior to determine ad placement.

Signals may include:

• Browsing history

• Purchase behavior

• Content consumption

This approach increases personalization.

Retargeting with Display Ads

Retargeting is one of the most effective uses of display advertising.

It allows advertisers to:

• Reconnect with past visitors

• Reinforce messaging

• Improve conversion rates

Display ads are especially effective for visual reminders.

Benefits of Display Advertising

Display advertising offers several key advantages.

Massive Reach

Display ads can reach users across millions of websites and apps.

This makes display advertising ideal for:

• Brand awareness

• Market expansion

Visual Storytelling

Display formats allow brands to:

• Use imagery

• Showcase products

• Communicate emotions

Visual storytelling builds recognition and trust.

Cost Flexibility

Display advertising supports:

• CPM bidding

• CPC bidding

• CPA optimization

Budgets can scale up or down easily.

Support for the Full Funnel

Display ads support:

• Awareness

• Consideration

• Retargeting

They complement search and social campaigns.

Challenges of Display Advertising

Despite its benefits, display advertising has challenges.

Banner Blindness

Users often ignore traditional banner ads.

Solutions include:

• Creative variation

• Native formats

• Strong messaging

Lower Direct Intent

Display users are not actively searching.

This makes:

• Conversion rates lower than search

• Messaging more important

Creative Fatigue

Repeated exposure to the same ad reduces effectiveness.

Refreshing creatives regularly is essential.

Best Practices for Display Advertising

To succeed with display advertising:

• Use clear visuals

• Keep messaging simple

• Match ads to landing pages

• Segment audiences

• Test formats and creatives

Optimization is ongoing.

Display Advertising for Different Business Types

eCommerce

Focus on:

• Product images

• Dynamic retargeting

• Promotions

B2B

Focus on:

• Educational content

• Brand authority

• Lead generation

Local Businesses

Focus on:

• Location targeting

• Awareness campaigns

• Mobile-friendly ads

Measuring Display Advertising Performance

Common metrics include:

• Impressions

• Click-through rate (CTR)

• Cost per click (CPC)

• Conversions

• View-through conversions

Display advertising often contributes indirectly to conversions.

The Role of Display Advertising in a Modern Strategy

Display advertising works best when combined with:

• Search advertising

• Social media ads

• Email marketing

• Content marketing

It strengthens brand presence across the buyer journey.

The Future of Display Advertising

Display advertising continues to evolve through:

• Automation

• Privacy-focused targeting

• AI-driven optimization

• Creative personalization

Despite changes, visual advertising remains essential.

Final Thoughts

Display advertising is a foundational component of online advertising. While it may not always deliver immediate conversions, its ability to build awareness, support retargeting, and reinforce brand messaging makes it indispensable in a comprehensive digital strategy.

When executed thoughtfully—with strong creative, smart targeting, and continuous optimization—display advertising delivers long-term value that extends far beyond clicks.