What Is Display Advertising? A Simple Guide for Beginners

What Is Display Advertising? A Simple Guide for Beginners

Display advertising is a form of digital marketing that places visual banner ads on third-party websites and apps, primarily through extensive ad networks like the Google Display Network (GDN). 

Its power lies in its diverse targeting options, allowing businesses to reach users based on contextual relevance, demographic data, or through retargeting previous website visitors. 

While clicks are a bonus, the primary goal of display advertising is to build brand awareness and stay top-of-mind with a target audience, making it a powerful branding tool.

What Actually Is Display Advertising?

Display advertising places visual ads on third-party websites, blogs, or apps. Think banner ads at the top of a news site, square ads in a sidebar, or video ads that play before a YouTube clip.

It's fundamentally a visual medium.

It’s Not Search Advertising

This is the most critical distinction. Search advertising (like Google Ads in the search results) is reactive. It captures demand that already exists. Someone types “emergency plumber near me,” and your ad appears. The intent is high.

Display advertising is proactive. It generates awareness. Your ad appears while someone is reading an article about home maintenance. They aren't looking for you, but you're planting a seed. You're building familiarity so that when their pipe does burst, your name is the one they recall.

The Core Components: The Ad, The Publisher, The Network

Understanding the moving parts is simple.

• The Ad: This is your visual creative. The image or video you design.
• The Publisher: This is the website or app owner who has space to sell. Think The Guardian, a local news blog, or a popular weather app.
• The Ad Network: This is the middleman connecting you (the advertiser) to thousands of publishers. The most significant player is the Google Display Network (GDN), which reportedly reaches over 90% of global internet users.

You give your ad and targeting rules to the network, and it finds the right publisher websites to place it on.

The Real Goal of Display Advertising (Hint: It’s Not Clicks)

If you walk away with one thing, let it be this: the primary goal of display advertising is to build top-of-mind awareness through repeated impressions.

You are paying for visibility in the right digital neighbourhoods.

The Villain: The Cult of the Click-Through Rate (CTR)

The marketing world has a dangerous obsession with the Click-Through Rate (CTR), which is the percentage of people who see and click your ad. For display ads, the average CTR is abysmal, often around 0.35% to 0.6%.

You will always be disappointed if you judge your campaign's success on this metric. You’ll create increasingly desperate, flashy, and obnoxious ads to chase that click. You'll annoy users and damage your brand.

CTR is the wrong metric because people don't browse the web to click ads. They browse to read articles, watch videos, and get information. Your ad is a visitor, not the main event.

The Hero: Building Brand Recall & Top-of-Mind Awareness

The real hero metric is brand recall. Did the right person see your professional, well-designed ad on a relevant website? Did they see it a few times over a few weeks?

The goal is to become a familiar face. When a potential customer who has seen your ads eventually has the problem your business solves, your brand should be the first one that comes to mind. They may not click the ad, but'll remember your name and search for you directly.

That's the win.

A Quick Word on View-Through Conversions

For the data-obsessed, there is a better metric than CTR. It's called a View-Through Conversion (VTC).

A VTC is recorded when someone sees your display ad but doesn't click it. Later, they visit your website and convert (e.g., purchasing or filling out a form). This metric directly measures the branding effect. It proves the ad did its job by influencing a future action, even without a direct click.

How It Works: The Machinery Behind the Banner

The process of your ad appearing on a website seems instant, but it's the result of a high-speed auction.

The Role of Ad Networks (Like the Google Display Network)

Ad networks are the massive marketplaces for ad space. The Google Display Network (GDN) is a collection of millions of websites, apps, and videos where your ads can appear.

Instead of calling up the owner of every blog you want to advertise on, you simply use the network. You provide the ad creative, a budget, and targeting parameters, and the network handles the placements automatically.

Programmatic Bidding: The Automated Auction

When a user with the right profile visits a website with ad space, an automated auction happens in milliseconds. This is called programmatic advertising or Real-Time Bidding (RTB).

Dozens or hundreds of advertisers might be competing for that single ad impression. The network evaluates each advertiser's bid, the ad's relevance, and its quality score, and the winner's ad is instantly displayed on the page. This happens every time a new page loads.

The Toolbox: Types of Display Ads You'll Encounter

Your creative options go far beyond a simple static image.

• Static Banner Ads (The Classic) are standard JPG, PNG, or GIF image files. They are simple to create and serve as the foundation of many campaigns.
• Animated & HTML5 Ads (The Eye-Catchers): These ads use subtle motion or interactive elements to grab attention. They can be more engaging than static ads if designed tastefully. If designed poorly, they are the source of the “annoying flashing banner” stereotype.
• Video Ads (The Heavy Hitters): Short video clips that can run before, during, or after other video content (like on YouTube) or appear as standalone units on publisher sites.
• Responsive Ads (The Chameleons): You upload several assets—images, headlines, logos, descriptions—and the ad network automatically mixes and matches them to create ads that fit perfectly into various ad slot sizes. This is the most efficient starting point.

Targeting: The Difference Between a Bullseye and Firing Blind

Your ad is only as good as the audience that sees it. Blasting it to everyone is a waste of money. Effective targeting is about precision.

Contextual Targeting: Placing Ads in the Right Neighbourhood

This is the most straightforward method. You tell the ad network to place ads on web pages related to specific topics or keywords.

If you sell high-end kitchen knives, you can use contextual targeting to place your ads on recipe blogs, food review sites, and articles about cooking techniques. You're matching the ad's content to the page's content.

Audience Targeting: Following the Right People

This method focuses on the user, not the page content. You can target people based on their:

• Demographics: Age, gender, location, parental status.
• Interests: What they've shown an affinity for based on their browsing history (e.g., “Home & Garden Enthusiasts”).
• In-Market Segments: People the network believes are actively researching purchases (e.g., “In-market for a new car”).

With this approach, your ad for kitchen knives could show up on a sports website if the person reading it is a known foodie.

The Power of Retargeting (Without Being a Creep)

Retargeting (or remarketing) shows ads to people who have visited your website. It's incredibly powerful because you're reaching a warm audience.

Someone visits your site, looks at a product, but doesn't buy. You can then show them a specific ad for that product as they browse other sites, reminding them to return. Platforms like AdRoll and Criteo specialise in this, alongside the major networks.

The key is to do it smartly. Capping the frequency so you don't stalk them across the internet is essential. Be a gentle reminder, not a digital pest.

Examples of Display Ads Done Right (and Wrong)

Theory is one thing; seeing it in practice makes it real.

Good Example: Asana on a Business Publication Website

Imagine reading an article on Forbes or Entrepreneur.com about project management trends. You see a clean, simple banner ad for Asana in the sidebar. The ad uses their brand colours, a transparent logo, and a concise headline like “The best way to manage your team's work.”

This works because:

1. Context is Perfect: The audience is business-minded and already thinking about productivity.
2. Design is On-Brand: The ad is professional and reinforces Asana's brand identity.
3. The Goal is Awareness: Asana isn't expecting you to drop everything and sign up. They're just ensuring their name is present while you're in a professional mindset.

Bad Example: “Dave's Discount Plumbing” on a Recipe Blog

Now imagine you're on a blog looking for a chocolate cake recipe. Suddenly, a flashing, bright yellow and red ad with pixelated clip art of a wrench appears. It screams “LEAKY PIPES? CALL DAVE! 555-1234! CHEAPEST IN TOWN!!!”

This fails because:

1. Context is Terrible: The user is thinking about baking, not plumbing. The ad is a jarring interruption.
2. Design is Brand-Damaging: The ad looks cheap and unprofessional, implying the service might be, too.
3. The Message is Wrong: The desperate, salesy tone is out of place and likely to be ignored or resented.

Why the Difference Matters More Than You Think

The Asana ad builds quiet confidence and brand equity. The “Dave's Plumbing” ad actively creates a negative brand association. One is a strategic investment; the other is digital pollution.

The creative element—the actual design and messaging—is critical. Getting your ads seen is only half the battle; ensuring they leave the right impression is what counts. A strong brand needs a strong visual identity, and our work in digital marketing is always built on that foundation.

Getting Practical: 5 Rules for Display Ads That Don't Suck

If you invest in display advertising, follow these rules to avoid wasting your budget.

Rule 1: Your Design Can’t Be an Afterthought

Your ad is a tiny ambassador for your brand. It must look professional. This means high-quality visuals, clean typography, and adherence to your brand guidelines. A poorly designed ad suggests a poorly run business.

Rule 2: Match the Message to the Audience

A message for a cold audience (who have never heard of you) should focus on introducing your brand's value proposition. A message for a retargeting audience (who have visited your site) can be more specific, perhaps reminding them of a product they viewed.

Rule 3: Keep the Call to Action Simple and Clear

The Call to Action (CTA) is the button or text that suggests the next step. Avoid vague CTAs like “Click Here.” Use clear, action-oriented language like “Learn More,” “Shop Now,” or “Get the Guide.” A clear CTA provides direction even if the main goal isn't a click.

Rule 4: The Landing Page Must Match the Ad

If a user does click your ad, the page they land on must be a seamless continuation of the ad's message and visual style. If your ad promotes a 20% discount on red shoes, the landing page should feature red shoes and clearly show the 20% discount. A mismatch creates confusion and loses trust.

Rule 5: Test. Everything.

You don't know what will work best until you test it. Create multiple versions of your ads (A/B testing) to see what performs best. Test different:

• Headlines
• Images
• Colours
• CTA buttons

Small changes can lead to significant differences in performance.

Is Display Advertising Right for Your Business?

It's a powerful tool, but not for everyone, especially if you're just starting.

When to Say Yes

Display advertising is a good fit if:

• You have a clear brand identity and high-quality creative assets.
• You want to build brand awareness in a specific niche or geographic area.
• You have a longer sales cycle and need to stay top-of-mind with prospects.
• You have a budget for marketing that isn't expected to produce a direct, immediate sale.

When to Hold Off

You should probably wait if:

• You have a minimal budget and need immediate sales to generate cash flow. Focus on search advertising first.
• You don't know who your target audience is yet.
• You don't have a professional brand identity or a well-functioning website. Fix your foundation before you advertise.

Stop Chasing Clicks, Start Building a Brand.

Display advertising is a long game. It's about patience, consistency, and the subtle art of becoming familiar.

Throw away the obsession with CTR. Focus on creating well-designed ads that clearly communicate your brand's value. Place them intelligently in front of the right audience. And measure success not in panicked clicks, but in long-term brand growth.

Do that, and you'll join the 1% of businesses that make it work.

FAQs about Display Advertising

Display advertising is a blend of art and science. The data tells you where to go, but the creative is what makes an impact when you get there. Even the best targeting strategy will fall flat if your brand's visuals aren't up to the task.

If you're ready to build a brand that gets noticed for the right reasons, great design is the place to start. Explore the digital marketing services at Inkbot Design to see how a solid creative foundation can make all the difference. Or, if you're ready to talk specifics, you can request a quote directly from us.