Have you ever visited a website and noticed an advertisement for a product, service, or brand displayed beside an article? Have you seen a banner promoting software while reading a blog post or browsing a news website?

These are common examples of display advertising.

Display advertising is a form of online advertising that uses visual elements such as images, graphics, text, animations, and videos to promote a business, product, service, or offer. These advertisements appear across websites, apps, and other digital placements.

Businesses use display ads to introduce their brands to new audiences, remind people about their products, promote special offers, and encourage visitors to explore their websites.

In this beginner-friendly guide, you will learn what display advertising is, how it works, its main types, how targeting and costs work, and how to plan a display advertising campaign.

What Is Display Advertising?

Display advertising is a form of digital advertising that uses visual advertisements to promote products, services, or brands across websites, apps, and other digital placements.

Unlike traditional search ads, which commonly appear when people search for particular keywords, display ads often appear while people browse content or use online services.

A display advertisement may contain:

• A product image or illustration.
• A headline and short description.
• A brand logo.
• A promotional message.
• A call-to-action button or link.
• An animation or video, depending on the format.

For example, imagine that YourWebSite.com publishes an article comparing project management software. A business that sells project management software might run a display advertising campaign to introduce its product to relevant audiences across participating websites.

A reader who sees the advertisement may click it to learn more about the software.

Display advertising can generate visibility and website traffic, but an advertisement does not guarantee clicks, sales, or conversions.

How Does Display Advertising Work?

Display advertising typically involves an advertiser, an advertising platform, an audience, an advertisement, and a destination page.

Here is how the process generally works.

1. Choose an Advertising Platform

First, the advertiser selects a platform or advertising network that offers suitable placements.

For example, Google Ads provides display advertising options that can reach eligible audiences across participating websites, apps, and other placements.

Other platforms and networks may offer different inventory, targeting options, formats, and campaign controls.

Choose a platform based on your target audience, objectives, budget, and the type of advertising you want to run.

2. Define Your Campaign Goal

Before creating ads, decide what you want to achieve.

Common display advertising goals include:

• Building brand awareness.
• Introducing a new product.
• Promoting a special offer.
• Attracting relevant website visitors.
• Encouraging people to consider a product.
• Reconnecting with eligible previous visitors.
• Generating leads or supporting sales.

Your goal influences the ad format, targeting method, bidding strategy, and metrics you should monitor.

3. Create Your Display Advertisement

The next step is to prepare the visual advertisement.

Depending on the platform and format, you may need images, headlines, descriptions, logos, and destination URLs.

A useful display ad should communicate its message quickly. Since people may be focused on reading an article or using an app, the advertisement needs a clear visual hierarchy and an understandable offer.

For example, an advertisement promoting a business software guide on YourWebSite.com could feature a simple headline such as “Explore Business Software Options” and direct interested users to a relevant comparison article.

4. Select Your Audience and Placements

Advertising platforms provide different targeting options. These may include contextual signals, topics, interests, demographics, geographic settings, or other audience selections, depending on the platform.

Some campaigns can also use selected placements or remarketing audiences.

The available controls vary, and advertisers must follow the platform’s policies and applicable privacy requirements.

5. Display the Ad

When an eligible advertising opportunity becomes available, the platform determines which advertisements may appear based on its delivery and auction systems.

Factors can include the campaign’s targeting, bid or bidding strategy, available inventory, ad relevance, and other platform-specific signals.

The advertisement may then appear in an eligible placement.

6. Measure the Results

After the campaign starts, review performance data such as impressions, clicks, click-through rate, cost, and conversions where tracking is available.

These measurements help you understand whether the campaign is reaching the intended audience and contributing to your marketing goals.

What Are the Main Types of Display Advertising?

Display advertising includes several formats. The right choice depends on the message, campaign goal, audience, and available placements.

1. Banner Ads

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Banner ads are rectangular visual advertisements placed within website or app layouts. They may appear near the top of a page, in a sidebar, between content sections, or in other eligible locations.

A banner usually combines an image or graphic with a short message and, sometimes, a call to action.

Example: A software company could display a banner promoting a free product demonstration.

Best suited for: Brand visibility, product promotion, and directing interested visitors to a landing page.

2. Responsive Display Ads

Responsive display ads use advertising assets such as headlines, descriptions, images, and logos. The platform can automatically adapt combinations and layouts to eligible placements.

Advertisers generally provide multiple suitable assets, and the platform selects combinations according to its systems.

Example: A business could provide several product images and headlines for a campaign promoting its online accounting software.

Best suited for: Advertisers who want platform-assisted creative adaptation across eligible placements.

3. Native Advertising

Native ads are designed to fit the general appearance and format of the surrounding content or platform.

They may appear as sponsored recommendations or promoted content. Their precise appearance depends on the publisher and advertising service.

Native advertising is not always classified as display advertising in every context, but it is a related form of visual online promotion.

Example: A clearly labeled sponsored recommendation could invite readers to explore a relevant educational resource.

Best suited for: Content discovery and reaching readers in content-focused environments.

Sponsored content should be clearly identified as advertising where required.

4. Rich Media Ads

Rich media ads may include interactive elements, animation, expandable layouts, or other advanced features.

They can offer more interaction than a static image, but they also require careful design and testing to ensure that they work properly across eligible devices and placements.

Example: An interactive advertisement could let users explore selected features of a software product.

Best suited for: Product demonstrations and campaigns that benefit from richer creative experiences.

5. Video Display Ads

Some display advertising environments support video creatives or video-based placements.

These ads can communicate a product’s features, demonstrate a process, or tell a short brand story.

Example: A business could use a brief video to demonstrate how its project management software organizes tasks.

Best suited for: Demonstrations, visual storytelling, and product awareness.

Video advertising may also be treated as a separate advertising format, depending on the platform.

6. Remarketing Display Ads

Remarketing display campaigns aim to reach eligible people who previously interacted with a website, app, or brand.

For example, someone who visited a software comparison article on YourWebSite.com might later see an advertisement related to that topic, if the campaign’s targeting setup and privacy requirements allow it.

Remarketing is a targeting approach rather than a separate visual format. It can use banners, responsive display ads, and other eligible creatives.

Best suited for: Re-engaging previous visitors and supporting further consideration.

What Is the Difference Between Display Advertising and Search Advertising?

Display advertising and search advertising both help businesses promote products and services online, but they reach people in different contexts.

Feature	Display Advertising	Search Advertising
Typical appearance	Visual ads across websites and apps	Ads commonly shown on search results pages
Main formats	Banners, images, responsive creatives, and some video placements	Text-based search ads and other search-result formats
Audience context	People browsing content or using eligible digital services	People entering search queries
Common goals	Awareness, consideration, remarketing, and traffic	Reaching people searching for relevant products or solutions
User intent	May be broad or interest-based	Often linked to a specific search
Creative approach	Visual design is often important	Relevance to the query and clear ad copy are important

Neither format is automatically better. Search ads may be useful when people actively search for a solution, while display ads can help introduce a brand to people who are not currently searching for it.

Businesses may use both as part of a wider advertising strategy.

What Are the Benefits of Display Advertising?

Display advertising can support several marketing objectives when the campaign is designed carefully.

1. Build Brand Awareness

Display ads can introduce a business to people who may not know about it yet.

Repeated exposure may help audiences become familiar with a brand, although excessive or irrelevant exposure can have the opposite effect.

2. Reach Relevant Audiences

Depending on the platform, advertisers can use contextual targeting, audience options, geographic settings, and other permitted controls to reach selected groups.

This helps advertisers align campaigns with their intended audience.

3. Use Visual Communication

Images, graphics, and video can make it easier to demonstrate a product, communicate a benefit, or show how a service works.

Good visuals should support the message rather than distract from it.

4. Support Remarketing

Display campaigns can help businesses reconnect with eligible previous visitors or users who have interacted with their brand.

This may be useful when people need additional information before making a decision.

Remarketing must comply with applicable privacy rules and platform policies.

5. Promote Content and Offers

Businesses can use display ads to promote articles, guides, webinars, product launches, or time-limited offers.

For example, YourWebSite.com could promote a useful guide about choosing accounting software to an audience likely to find that information relevant.

6. Measure Campaign Performance

Advertising platforms provide reporting tools that can help advertisers review impressions, clicks, spend, and conversions.

The exact measurements depend on the platform and the tracking configuration.

What Are the Disadvantages of Display Advertising?

Display advertising also has limitations that beginners should understand.

1. Many People May Ignore the Ads

People often focus on the main content of a page rather than its advertisements. As a result, a display ad may receive many impressions but relatively few clicks.

2. Clicks May Not Lead to Conversions

A click only indicates that someone interacted with the ad. It does not prove that the visitor is interested enough to register, enquire, or purchase.

The landing page, offer, audience, and overall user experience influence the final result.

3. Poor Placements Can Waste Budget

Ads shown in irrelevant contexts may attract little useful attention. Advertisers should review available placement reports and apply suitable exclusions where the platform allows them.

4. Creative Quality Matters

Low-quality images, unclear headlines, excessive text, or a weak call to action can make advertisements less effective.

Ads should be readable, relevant, and suitable for the placements where they appear.

5. Tracking and Privacy Need Attention

Measuring conversions across websites and devices can be complicated. Privacy rules, consent requirements, browser restrictions, and platform policies may affect what data can be collected or used.

Configure measurement responsibly and do not assume every visitor can be tracked.

How Much Does Display Advertising Cost?

Display advertising does not have one universal price. Costs depend on the advertising platform, audience, competition, placements, campaign objective, creative quality, and bidding method.

Common pricing and performance measures include the following.

Cost Per Thousand Impressions (CPM)

CPM means the cost per 1,000 impressions.

For example, if a campaign spends $600 and records 30,000 impressions, the CPM is:

CPM = $600 ÷ 30,000 × 1,000 = $20

This indicates an average cost of $20 per 1,000 impressions for that example. It does not show how many people clicked or converted.

Cost Per Click (CPC)

CPC measures the cost associated with a click.

For example, if you spend $1,000 and receive 250 clicks, the average CPC is:

Average CPC = $1,000 ÷ 250 = $4

Not every display campaign is billed strictly per click. Actual billing depends on the campaign type and platform settings.

Cost Per Acquisition (CPA)

CPA measures the advertising cost associated with a defined conversion, such as a lead or sale.

For example, if you spend $2,000 and receive 20 recorded leads, the cost per lead is:

CPA = $2,000 ÷ 20 = $100 per lead

This calculation does not include other business expenses.

Return on Ad Spend (ROAS)

ROAS compares revenue attributed to advertising with advertising spend.

For example, if a campaign generates $8,000 in attributed revenue from $2,000 in advertising spend:

ROAS = $8,000 ÷ $2,000 = 4:1

ROAS is not the same as profit. Product costs, commissions, refunds, and other expenses must be considered separately.

How to Create a Display Advertising Campaign

If you are a beginner, follow these steps to build a campaign with a clear purpose.

Step 1: Define One Main Objective

Decide whether your primary goal is awareness, relevant website traffic, lead generation, or sales.

A specific goal helps you select the right campaign type and metrics.

Step 2: Identify Your Audience

Describe the people you want to reach. Consider their needs, interests, location, and the type of information or product they may be looking for.

Choose targeting options that are available and permitted on your selected platform.

Step 3: Select a Suitable Platform

Compare platforms based on their audience reach, available placements, targeting controls, creative requirements, reporting, and costs.

Review the platform’s current advertising policies before preparing your campaign.

Step 4: Prepare Your Ad Creative

Create clear and relevant headlines, images, descriptions, and logos as required.

Keep the main message easy to understand. Ensure that the visual design is legible on different screen sizes and that the ad does not make misleading claims.

Step 5: Choose the Destination Page

Send visitors to a page that matches the advertisement.

For example, if a display ad promotes a guide about choosing business software on YourWebSite.com, the destination should be that relevant guide rather than an unrelated page.

Make sure the page loads reliably, works on mobile devices, and offers a useful next step.

Step 6: Set Your Budget and Bidding Strategy

Choose a budget that you can afford to test. Understand how the platform handles campaign budgets, billing, bidding, and delivery before launching.

Avoid assuming that a particular budget will produce a fixed number of visitors or sales.

Step 7: Configure Measurement

Set up appropriate analytics and conversion tracking where possible.

Depending on your goal, useful measurements may include:

• Impressions and reach.
• Clicks and click-through rate.
• Advertising spend.
• Landing page engagement.
• Form submissions or registrations.
• Purchases or other conversions.

Follow applicable consent, privacy, and platform requirements.

Step 8: Launch and Review

After the campaign is approved and running, review its performance at reasonable intervals.

Look for patterns in audience relevance, placement quality, click costs, and conversions. Make adjustments based on meaningful data rather than reacting to every short-term fluctuation.

Display Advertising Example for YourWebSite.com

Imagine that YourWebSite.com publishes an article titled “How to Choose the Right Project Management Software.”

The website owner wants to introduce this article to people who may be interested in business productivity tools.

A possible display campaign could be planned as follows:

• Campaign goal: Attract relevant visitors to the article.
• Advertising format: A responsive display ad or suitable banner.
• Creative message: “Compare Project Management Tools for Your Business.”
• Destination: The relevant article on YourWebSite.com.
• Audience: A suitable audience or contextual segment, where available and permitted.
• Budget: A small test budget with spending controls.
• Primary measurements: Impressions, clicks, average CPC or CPM, and meaningful actions on the website.

Suppose the campaign generates 20,000 impressions and 160 clicks while spending $800.

The click-through rate is:

CTR = 160 ÷ 20,000 × 100 = 0.8%

The average cost per click is:

Average CPC = $800 ÷ 160 = $5

These figures describe the example’s delivery and click costs. They do not establish whether the campaign was successful.

To evaluate the outcome, the website owner should also consider the relevance of the visitors, their engagement with the article, any affiliate link clicks, and confirmed results where available.

Affiliate marketing note: If YourWebSite.com uses affiliate links, review the relevant affiliate program’s paid advertising rules before promoting pages or offers. Some programs restrict particular traffic sources, trademark bidding, direct linking, or other advertising methods. Disclose affiliate relationships clearly and comply with applicable advertising and privacy requirements.

Best Practices for Effective Display Advertising

Use Clear and Readable Designs

Keep the headline concise, use suitable contrast, and make the main message easy to understand. Check how the creative appears across the placements and screen sizes supported by the platform.

Match the Ad to the Landing Page

The advertisement and destination should have a consistent message. If the ad promises a software comparison, the destination should provide that comparison.

Test Different Creative Options

Where supported, test variations in headlines, images, descriptions, and calls to action.

Change a manageable number of elements at a time so you can better understand what may have affected performance.

Review Placements

Use available reports to identify placements that generate relevant engagement. Exclude unsuitable placements when the platform provides that control.

Avoid Misleading Claims

Do not promise guaranteed savings, results, earnings, or product capabilities without reliable support. Advertising should accurately represent the offer.

Optimize for the Actual Goal

If the goal is lead generation, focus on qualified leads and cost per lead. If the goal is awareness, consider reach and appropriate exposure measures. Clicks alone are not a universal measure of success.

Respect Privacy

Use remarketing and audience data only in accordance with applicable laws, consent requirements, and platform policies.

How to Measure Display Advertising Performance

Use metrics that align with the objective of your campaign.

• Impressions: How often an ad was displayed according to the platform’s measurement system.
• Reach: The number of distinct people or accounts reached, as defined by the platform.
• Click-through rate (CTR): Clicks divided by impressions, expressed as a percentage.
• CPM: Cost per 1,000 impressions.
• Average CPC: Average advertising cost per click.
• Conversions: The desired actions recorded through your campaign’s measurement setup.
• CPA: Advertising cost divided by the number of recorded conversions.
• ROAS: Attributed revenue divided by advertising spend, when reliable revenue data is available.

For a content website such as YourWebSite.com, also consider whether visitors engage with the content and take relevant next steps.

For affiliate campaigns, distinguish between an ad impression, an ad click, an affiliate link click, a merchant purchase, and a confirmed commission. These are separate events and may be tracked differently.

Frequently Asked Questions About Display Advertising

1. What is display advertising in simple words?

Display advertising uses visual ads, such as banners and images, to promote products, services, or brands across websites, apps, and other digital placements.

2. What is an example of a display ad?

A banner promoting accounting software on a business website is one example. Other examples include responsive image ads, eligible video placements, and visual remarketing ads.

3. Is display advertising the same as banner advertising?

Not exactly. Banner advertising is one type of display advertising. Display advertising also includes other visual formats, depending on the platform and placement.

4. What is the difference between display and search ads?

Search ads commonly reach people through search queries, while display ads typically appear as visual advertisements across websites and apps. Search ads often respond to active search intent, while display ads can support awareness, consideration, and remarketing.

5. Is display advertising suitable for small businesses?

It can be suitable for small businesses that have a clear objective, an appropriate audience, a relevant landing page, and a manageable budget. Results vary, so campaigns should be tested carefully.

6. Does display advertising always use images?

No. Visual formats vary by platform. Display advertising often uses images or graphics, while some eligible placements support animation, interactive creative, or video.

7. What is remarketing in display advertising?

Remarketing is an approach that allows advertisers to reach eligible people who previously interacted with their website, app, or brand. It depends on platform capabilities, campaign settings, and applicable privacy requirements.

8. How is display advertising charged?

Depending on the platform and campaign, charges may be based on clicks, impressions, or other bidding and billing arrangements. Review the campaign’s specific pricing and billing settings before launching.

9. Can display advertising increase website traffic?

It can bring visitors to a website when people click the ads. However, traffic volume and quality depend on the audience, creative, placements, budget, and campaign settings.

10. Can affiliate websites use display advertising?

Potentially, but the website owner must check the advertising platform’s policies and the affiliate program’s terms. Some programs restrict certain paid traffic methods or destinations. Disclose affiliate relationships clearly and measure costs against confirmed results.

Conclusion

Display advertising uses visual advertisements to promote brands, products, services, and content across websites, apps, and other digital placements.

It can help businesses build awareness, introduce offers, reach relevant audiences, and reconnect with eligible previous visitors. However, results depend on creative quality, targeting, placement selection, landing page relevance, costs, and the campaign’s objective.

If you are starting out, define one clear goal, prepare a useful advertisement, choose a relevant destination page, set a controlled budget, and track meaningful results. Use the data to improve the campaign gradually.

For a website such as YourWebSite.com, display advertising can complement content marketing, SEO, and other promotional methods when it supports the site’s objectives and is financially sensible.

The key is to focus on relevant audiences and measurable outcomes rather than impressions or clicks alone.