What’s display advertising: Why it matters for businesses in 2025
You scroll through a blog and suddenly see an ad for those sneakers you browsed last night. That’s the power of display advertising — it catches people even when they’re not looking for you, turning casual browsing into brand discovery.
It’s also one of the fastest-growing channels in digital marketing. In 2023, global display ad spending hit $207.4 billion, and it’s projected to reach $266.6 billion by 2026. That growth means more brands are investing in display, and more opportunities for you to stand out.
When you use display ads, you reach people who aren’t actively searching for you. These ads show up across websites, apps, and social platforms, boosting brand awareness and letting you retarget shoppers who left without buying.
In this article, we’ll dig into campaign setup, so you can introduce AI display ads with confidence. By the end, you’ll know exactly how to turn casual browsers into engaged customers without overspending.
Definition & overview
Display advertising merges catchy imagery and data-driven targeting. It started with static banners on websites and evolved into interactive experiences, such as quizzes or video spots, that spark curiosity and nudge customers toward action.
Today, platforms like the Google Display Network handle placements automatically. They let you filter by demographics, interests, and browsing habits. It’s a powerful way to show off your brand to the right audience at the right time, even if they haven’t heard of you yet.
You don’t have to wait for someone to search for specific keywords. Display ads help you reach potential buyers who might not realize they need your product yet, offering a proactive edge over purely reactive methods.
Whether you’re a local bakery or a global SaaS provider, you can tailor ads to fit any marketing goal. By combining engaging visuals with well-defined objectives, you’ll build awareness, encourage conversions, and stay on your audience’s radar.
You can often begin testing with $10–$20 a day. Run your campaign for at least a week to collect enough impressions, clicks, and conversions. However, your budget and timeline might need adjustments based on your specific platform, audience, goals, and the initial results.
When you’re ready to choose a platform, consider your audience. The Google Display Network gives you massive reach across countless sites. Facebook offers precise interest targeting, while LinkedIn caters to professional demographics. Pick one or two channels that best match your ideal customers, then refine as you go.
The evolution of display advertising
You might not remember the first static banner ad in 1994, but it changed how brands connect with you online. By the mid-2000s, that simple approach had reached its peak. So, advertisers turned to programmatic buying, which uses real-time data.
Real-time bidding lets brands bid on each impression the moment a page is loaded, saving time and boosting targeting accuracy. Suddenly, ads felt more personal, even if you hadn’t searched for a product yet.
In 2019, mobile display ads surpassed desktop, reflecting how much time you spend on apps, news portals, and social feeds. This shift made the display even more dynamic, reaching you whenever you had a phone in hand.
Today, major browsers block third-party cookies, limiting retargeting options. That’s why brands lean on contextual targeting, first-party data, and AI-driven creative optimization to keep their ads timely and relevant.
When privacy standards shift and user habits evolve, you need flexible strategies to stay visible. If you’re ready to pivot quickly, your display advertising efforts will adapt along with the changing digital landscape.
How does display advertising work?
Display advertising puts your brand’s visual ads in front of potential customers. It uses programmatic advertising platforms, such as the Google Display Network or Facebook Audience Network, to automate targeting and bidding behind the scenes.
Set up your platform and goal
You start by choosing where you’ll run your ads. Google Ads offers wide reach through the Google Display Network, while Meta Ads Manager taps into Facebook and Instagram.
Tools like Zeely AI provide advanced programmatic buying. You then set a clear objective, like brand awareness, lead generation, or sales, so the platform can optimize the campaign accordingly. Defining a strong goal keeps your campaign focused and helps you measure what success truly looks like.
Choose and refine your audience
Next, you decide who sees your ads. Platforms let you build demographic segments and behavioral segments, like browsing habits or interests. You can also use retargeting for a second chance at conversions. It means you show ads to previous site visitors.
The more specific your targeting, the less wasted ad spend. If you sell running shoes, focus on runners who read fitness blogs or follow workout channels. This approach is a core ad targeting strategy for display advertising.
Design and upload your creatives
You then create different types of display ads that grab attention in busy feeds and web pages. Use short copy, vibrant images, or snappy videos that tie directly to your offer. A clear call-to-action, like “Shop Now” or “Sign Up,” directs users to the next step.
Once approved, you upload these creatives to your platform of choice. Effective visuals and strong messaging can increase engagement and strengthen your brand image.
Launch via real-time bidding
An automated auction called real-time bidding happens in a split second when someone visits a website or opens an app. If your audience matches that profile, the platform bids for you. If you win, your ad appears right away. RTB ensures each impression is served to a relevant user, optimizing your chances of generating clicks and conversions.
Track and optimize
After launch, you monitor impressions, click-through rate, and conversions, such as sign-ups, sales, or other desired actions. Metrics analysis allows you to adjust targeting, ads, or landing pages to improve results. Continuous iteration based on data keeps your campaign fresh and responsive to audience behavior.
Why it matters overall
Display advertising powers brand awareness, boosts conversions, and re-engages potential customers. By pairing audience segmentation with automated bidding, you reach the right people even before they search. It gives you a chance to stand out, influence decisions, and guide users toward your brand.
That’s how display advertising works from start to finish. Now you know the where brand growth and conversions. All that’s left is to put these steps into action — and watch your results roll in.
Types and formats of display ads
You have a few display options, from static banners to engaging video ads. Each format fits different budgets, goals, and levels of creative complexity.
Static banners are the most familiar form of display ads. They’re still images with simple text and work best for broad awareness or quick promotions. Let’s review every ad type in detail.
Banner ads & static displays
Banner ads are the most common digital banners you’ll see online. Sometimes they’re called static display ads, non-interactive display ads, or evergreen ads. They use a single static image, a short headline or tagline, and a call-to-action. There’s no animation or interactive element.
Think of a 728×90 leaderboard on a news site or a 300×250 rectangle on a blog’s sidebar. These simple display ads load fast and need minimal coding.
They remain relevant in 2024 because they’re cost-effective and supported by major networks like Google Display Network and Meta Ads Manager. You can reach wide audiences or target specific niches by setting your placements and budget. Compare display ads vs banner ads to choose the best option for your business.
Typical layout & best practices
A banner ad usually features your logo or brand name at the top. It includes a short, punchy headline and a bold CTA, like “Shop Now” or “Learn More.” Keep your copy concise. Use strong color contrasts so your text stands out. Place the call-to-action where it’s impossible to miss.
A clear, high-quality image sets the tone. Refresh your designs often to avoid banner blindness, which happens when viewers see the same creative too many times. Make sure the layout can adjust to various screens if you run mobile campaigns.
Comparing static vs. modern formats
Static banners rely on basic visuals and text. They’re cheap, quick to set up, and often see 0.35% CTR if rotated and targeted well. Rich media or animated ads offer interactive features and can draw more attention, but they cost more to produce and may load more slowly.
Static ads are perfect for broad awareness, retargeting, or simple promotions. More advanced formats work better for storytelling or product demos.
An e-commerce brand might run a 300×250 banner on GDN for a weekend sale to returning visitors. That’s a quick way to measure clicks before investing in more complex creatives.
Performance & measurement
Banner ads can be hit or miss in terms of engagement. Much depends on your audience targeting, creative rotation, and the ad’s frequency. Updating headlines or visuals prevents fatigue and keeps customers interested.
Because static display advertising is widely recognized, it can also be more budget-friendly than animated or rich media campaigns. Just remember about mobile optimization. If you watch your metrics and tweak your designs, banner ads deliver solid value for smaller budgets or fast-turnaround promotions.
Rich media, video & interactive ads
Rich media ads expand or animate beyond a static banner. Video ads for display advertising rely on short clips, with sound or subtitles, to tell a story. Interactive ads ask users to click, swipe, or explore. Each format uses dynamic creatives to spark immersive content and boost engagement beyond what static banners can achieve.
You often need designers, developers, or special software to handle animations, video editing, or interactive prompts. Major platforms, like Google Display Network, Meta, YouTube, or in‐app networks, support these ads. Always check file size limits and specs before launching.
Typical layout & best practices
Examples of rich media display ads include expandable banners and animated product galleries. A video ad might autoplay on social or run for 15 seconds on YouTube. An interactive ad could feature polls, quizzes, or clickable hotspots. Maintain smooth flow, simple animations, and clear controls. Showcase products early and let people explore.
A rich media ad often needs HTML5 coding or an animation tool. A video ad usually calls for scripting and editing, plus on‐camera talent or voiceovers. An interactive ad might rely on ready‐made templates or require coding expertise. The complexity depends on your goals. Keep the design intuitive so people know how to interact.
Focus on load speed. Compress large files so your ad doesn’t stall. Respect user comfort. Mute audio by default and offer a clear skip option. Ensure mobile responsiveness. Test on phones or tablets to confirm images don’t crop. Make your logo appear at the start to highlight brand visibility. Maintain an intuitive design so users can engage.
Performance & measurement
Adding interactivity or video can sharply boost viewer engagement. Use Google Ads, Meta Ads Manager, or YouTube Analytics to track metrics like completion rates, click‐throughs, or dwell time. Then refine your visuals, edit your video length, or update interactive prompts.
If you’re ready to explore digital ad innovation beyond static banners, start small. Test a short video ad or a rich media template that expands on hover. See how your audience responds. If engagement jumps, you’ll know these advanced formats deserve a bigger role in your campaign.
Mobile & interstitial ads
A mobile display ad is a mobile-optimized ad format that shows up on phones or tablets. An interstitial ad is a full-screen placement that appears during content transitions.
Both formats use responsive mobile display ads principles: quick load times, clear designs, and minimal user disruption. You can run them through Google Ads, Meta Ads Manager, or networks that support touchscreen ad formats and mobile-first creative.
They work in both in-app and mobile web environments. The goal is to keep ads relevant, well-timed, and friendly. A typical mobile interstitial often appears in a 320×480 portrait layout, with a bold headline, short copy, and a visible exit option. That approach prevents frustration and keeps cross-device compatibility in check.
Typical layout & best practices
You want ads that load fast. Keep file sizes small so people don’t wait. Use high-contrast colors and make your call to action easy to tap on a touchscreen. If your headline is long, trim it to 40 characters. Plan for portrait and landscape views if users rotate their devices. Don’t clutter the screen: this can hide the skip or close button.
If skip rates jump or people complain, reduce the frequency of the interstitial ad. Frequency capping helps you limit ads to once or twice per session. Large backgrounds slow pages, so keep them compressed. By focusing on these layout details, you deliver a mobile-first creative that respects user flow and boosts engagement.
Performance & measurement
A well-built mobile-optimized ad format might lift click-through rates. Track skip rates, session drops, and conversions with Google Ads, Meta Ads Manager, or in-app analytics. If ad fatigue sets in or people exit too quickly, adjust your design or timing. Keep testing until you find what resonates across devices.
Start small. A/B test one version of your interstitial ad, like a special offer or a simpler creative. Compare results to a control group without interstitials. Watch skip rates and conversions. This phased approach helps you refine your mobile-first creative without risking your entire audience.
Use rich media if you have layered visuals and want a “wow” factor. Pick video ads when motion and storytelling drive your brand. Opt for interactive ads if user participation is key. Choose mobile ads if you want to reach users on the go. Each one can live on major ad networks, apps, or social media — wherever your audience is.
Best practices for effective campaigns
You can’t master display advertising if every tip feels scattered. Follow this guide to blend creative design, audience focus, and budget control for true digital campaign optimization.
Define clear goals
Ask yourself what success looks like. Focus on one or two metrics, like click-through rate or conversions, so you don’t chase too many KPIs and confuse your results.
Craft compelling ad creative
Strong visuals need concise copy. Free design tools or prebuilt templates help if you’re on a budget. Test small changes, like headline phrasing or CTA color, over 7–10 days or until you reach 100 clicks.
Match ads to audiences
Different groups need different messages. Segment by demographics or interests in Google Ads, Meta, or your DSP so you avoid wasting impressions on the wrong viewers.
Set up display campaigns on a budget
Choose a daily or lifetime cap, and keep an eye on CPC and ROAS to scale profitably. If cost-per-conversion spikes, adjust placements or frequency caps, then make sure your ad creative still fits the revised targeting.
Real-time synergy
Check alignment among creative, analytics, and budget at least weekly. If you switch audience segments or raise bids, ensure visuals match the new direction to keep things cohesive.
Analyze & optimize
Watch cost-per-conversion, frequency, and placement reports through tools like Google Ads or Meta. If results drop, refine your creative or narrow targeting, then measure again. Neil Patel advises monitoring ads and updating assets regularly to spot winners by testing variations.
You aren’t just blending creative design, targeting, and budget. You’re building a system that adapts with every insight. Over time, your display ad performance grows stronger because each tweak is guided by real data. There’s no guesswork — just a data-driven approach that ensures your brand stands out and delivers consistent ROI.
Managing your display advertising campaigns
You want campaigns that reach the right people, at the right time, with the right message. That means setting clear goals, tracking performance, and optimizing each step. When you manage everything as one cohesive strategy, you’ll see stronger results and a better return on your ad spend.
Using display advertising networks
You want the right display ad network for your goals, budget, and audience. Take a quick look at Google Display Network, Facebook Audience Network, and programmatic platforms below, so you can make a smarter choice. Each offers unique strengths for reach, targeting, or deep analytics.
Facebook audience network
You tap into rich social signals beyond Facebook itself. That means behavioral insights and mobile-first formats, like in-app video or carousel ads. Coverage is smaller than GDN, but you can zero in on advanced lookalike targeting. If you prioritize close social engagement, this might be your best bet.
Google Display Network
GDN reaches over 90% of global users. It syncs with Google Analytics to track on-site behavior in near real time. You also get varied ad formats, like responsive banners and interactive units, to test across millions of sites.
Programmatic for media buying optimization
Platforms like DV360, The Trade Desk, Amazon DSP, Xandr, and Yahoo DSP auction inventory in real time. You feed first‑party data, set bid caps, and add brand‑safety rules. The algorithm adjusts each impression to trim waste and lift results.
Lean on programmatic display buying when you need multi‑channel reach or large‑scale retargeting. Expect higher minimum spends and a learning curve, so partner with a specialist if bandwidth is tight. Done right, you get sharper targeting, lower CPMs, and agile media buying that scales with your goals.
List your top priorities: massive reach, ad automation, or deep audience data. Weigh CPC, ROI, and how each option integrates with your analytics and CRM. Pick where your budget thrives and where your audience lives. That’s how you create a data-driven, flexible approach that drives real digital campaign optimization.
Conclusion
Display advertising gives you more than just reach — it helps you connect with the right audience at the right time. From simple banner ads to advanced interactive formats, display campaigns let you tell your story visually, target with precision, and measure what works.
Now that you know how display ads work, how to choose the right formats, and how to manage campaigns across display advertising networks, you’re ready to run smarter campaigns. Focus on visual engagement, audience segmentation, and conversion optimization. Keep your creative, data, and AI marketing campaign strategies aligned — then iterate.
Stay focused on the metrics that matter. Monitor your click-through rate, track your display ad performance, and test new ideas often. The more you refine, the more your digital ads will do the work for you. As you grow, keep learning. Display advertising is always evolving — but now, so are you.
