How do display ads work?

A type of online ad that combines text, images, and a URL that links to a website where the customer can learn more or buy products. These ads can be static with one image or animated with several images, videos, or text changes (also called multimedia ads). Display ads are image and video ads that are shown to people as they browse websites, apps, social networks and, more recently, connected TV devices. Display networks work by accepting the ads you send, taking into account your target audience and goals, and running the ad for you.

It's a great way to reach as many people as possible in a highly specific and effective way. Display advertising is defined as a mode of online advertising in which marketers use banner ads together with other visual ad formats to advertise their products on websites, applications or social networks. Dynamic display ads dynamically display ads to users based on the products and pages they browse. This is the most important metric to consider because, at the end of the day, conversion is the primary goal of ad delivery.

Typically, prospecting for graphic content falls here, where most display impressions are for users who have expressed a high level of intent (for example, running display ads to people who abandoned their shopping cart or visited other valuable pages on their website). If you're trying to sell a quick emergency service like a plumber, it's likely that you won't get any conversion on the display network. These ads are usually purchased with a low CPM and aim to expand the top of the funnel by letting people know about your brand, product or service. One of my favorite providers of this type of ad unit is Vibrant Media, which offers a pop-up ad with text that scrolls the mouse to display (demonstration).

According to the Display Benchmarks tool, the average CTR for display ads in all formats and locations is 0.06%. Simply put, an impression is the number of times an advertisement has been “shown” to a user on a website or location. Ensuring the correct hierarchy and nomenclature is critical to correctly measuring display ads (and more). You can monitor the reach of your ad and evaluate the effectiveness of your display ad management and your targeting effort.

While many marketers believe that display ads are dead, they can be an effective method for achieving your goals. If it seems like your impressions are increasing but your conversion rate isn't, you may need to rethink your display ad management plan. You can usually see display ads in designated corners of websites and social media platforms, and they are usually displayed in the form of a banner (graphic or text).

Keira Shaw
Keira Shaw

Internet trailblazer. Freelance beer advocate. Freelance pop culture specialist. Coffee ninja. Subtly charming tea specialist.

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