Display Ads: What They Are, Types, & How They Work

Display advertising has become an integral part of the online marketing landscape. These online ads with visuals can be seen on various websites and apps, capturing the attention of users and driving brand awareness. In this article, we will delve into what display ads are, the different types available, and how they work.

What are Display Ads?

Display ads, also known as banner ads, are graphical advertisements that are displayed on websites and apps. Unlike text-based ads, display ads utilize visuals such as images, videos, or interactive elements to convey the message to the audience. These ads can be found in various sizes and formats, ranging from small rectangular banners to full-page takeovers.

The main objective of display advertising is to capture the attention of users and encourage them to take a specific action, such as clicking on the ad to visit a website, making a purchase, or signing up for a newsletter. Display ads are typically placed strategically on websites that attract the target audience, ensuring maximum visibility and engagement.

Types of Display Ads

There are several types of display ads that marketers can utilize to reach their target audience effectively. Let’s explore some of the most common types:

1. Static Image Ads

Static image ads are the simplest form of display ads. They consist of a single static image or graphic that conveys the message to the audience. These ads are often used to showcase a product or highlight a specific offer. Static image ads can be effective in capturing attention and driving clicks when designed creatively and placed strategically.

2. Animated Ads

Animated ads are display ads that incorporate movement or animation to grab the viewer’s attention. These ads can be in the form of GIFs or HTML5 animations. By adding motion to the visuals, animated ads can create a more engaging and interactive experience for the audience, increasing the likelihood of clicks and conversions.

3. Video Ads

Video ads are display ads that utilize video content to deliver the message. These ads can be in the form of short video clips or full-length commercials. Video ads are highly effective in capturing attention and conveying complex messages in an engaging manner. They are particularly popular on video-sharing platforms and websites with video content.

4. Rich Media Ads

Rich media ads are interactive display ads that go beyond static visuals or videos. These ads often include interactive elements such as games, quizzes, or surveys, allowing users to engage with the ad content. Rich media ads can provide a unique and immersive experience, increasing user engagement and driving higher conversion rates.

How Do Display Ads Work?

Display ads work through a process known as programmatic advertising. Here’s a simplified breakdown of how it works:

1. Advertiser Sets Campaign Parameters

The advertiser defines the campaign parameters, including the target audience, budget, ad format, and desired outcomes. These parameters help ensure that the display ads reach the right audience at the right time.

2. Ad Inventory is Evaluated

When a user visits a website or app, the available ad inventory is evaluated by an ad exchange or ad network. The ad exchange matches the user’s profile and behavior with the advertiser’s target audience criteria to determine if the user is a good fit for the display ad.

3. Ad Placement and Bidding

If the user is deemed suitable for the display ad, an auction takes place among advertisers who want to reach that specific user. Advertisers bid for the ad placement, with the highest bidder winning the opportunity to display their ad to the user.

4. Ad Displayed to User

Once the auction is completed, the winning ad is displayed to the user on the website or app they are visiting. The ad is typically placed in a prominent location to maximize visibility and engagement.

5. User Interaction and Tracking

If the user interacts with the display ad, such as clicking on it or making a purchase, the advertiser can track these actions and measure the effectiveness of the campaign. This data helps optimize future display ad campaigns and improve overall performance.

Conclusion

Display ads play a crucial role in online advertising, allowing marketers to reach their target audience effectively and drive brand awareness. With various types of display ads available, marketers can choose the format that best suits their campaign objectives. By understanding how display ads work through programmatic advertising, advertisers can optimize their campaigns and achieve better results. So, if you’re looking to enhance your online marketing strategy, consider incorporating display ads into your digital advertising efforts.