The Importance of Display Advertising in Digital Marketing

What is Display Advertising?

Display advertising refers to visual ads, such as banners, videos, and interactive formats, placed across websites, apps, and social media platforms. These ads are designed to build brand visibility, drive awareness, or re-engage users who have previously interacted with your brand.

Display ads come in various formats, including static banners, video, native placements, and rich media. They’re versatile, scalable, and vital to many digital strategies. It is one of the various PPC strategies that businesses employ to spread their brand.

A Brief History and Evolution of Display Advertising

Display advertising began with the humble banner ad in the 1990s. Over time, the ecosystem evolved with the introduction of ad networks and real-time bidding (RTB), allowing advertisers to buy ad space programmatically.

Today, display advertising is powered by sophisticated algorithms, dynamic creatives, and automation. It’s increasingly focused on privacy and efficiency, with shifts toward cookieless targeting and AI-driven optimisation.

Why Display Ads Matter in 2025

Unlike search ads, display ads can reach users even when they’re not actively searching. They’re powerful for brand visibility in a world where attention is fleeting and cookies are disappearing.

For B2B marketers in particular, display advertising helps maintain visibility throughout long, complex sales cycles. It supports full-funnel marketing, helping brands stay top-of-mind across awareness, consideration, and conversion stages.

Benefits of Display Advertising

Builds Brand Awareness and Visibility

Display ads put your brand in front of large, targeted audiences—ideal for the early stages of long B2B sales cycles. They help embed your brand into the memory of potential buyers, increasing the likelihood of recall when the need arises.

Leverages Visual Storytelling

It’s one thing to explain your value—it’s another to show it. Display ads let brands do exactly that, using visuals, animations, or even motion graphics to grab attention. For SaaS companies or complex service providers, this is gold. A smart design or short animation can untangle abstract concepts and turn them into something a prospect remembers. Done right, these visuals aren’t just nice to look at—they’re emotional anchors.

Enables Precise Audience Targeting

Modern display platforms offer advanced targeting based on user behaviour, interests, geographic location, and contextual relevance. Marketers can combine these layers for greater precision and relevance, while retargeting helps bring back users who have shown prior interest.

Supports Full-Funnel Marketing

Display isn’t just a one-trick pony. It works across every stage of the buyer journey:

• Top of Funnel (Awareness): Think broad reach and lightweight messaging—perfect for introducing your brand to fresh eyes.
• Middle of Funnel (Consideration): Here, it’s about nurturing. Targeted content that adds value, builds trust, and keeps your solution in the mix.
• Bottom of Funnel (Conversion): Retargeting comes into play—reminding warm leads why they were interested in the first place, and nudging them closer to action.

This cross-funnel flexibility is what makes display such a valuable asset in longer B2B sales cycles.

Scalable and Cost-Effective

Display advertising suits a range of budgets. Compared to channels like search and social, it often comes with a lower cost-per-click (CPC). It’s also highly scalable, making it a flexible option for brands across verticals and growth stages.

Types of Display Ads

Static Banner Ads

These are your digital billboards; simple, image-based creatives often paired with a headline, logo, and a CTA. They’re everywhere for a reason: quick to produce, easy to deploy, and reliable for raising awareness or promoting offers. While basic, they still get the job done when well-targeted and designed with intent.

Rich Media Ads

If static banners are a handshake, rich media is a conversation. These ads incorporate movement—scrolling, video snippets, or even carousels—that invite interaction. They’re more dynamic, which makes them stand out. Perfect when you want to go beyond just being seen and spark engagement.

Video Ads

There’s something about motion and sound that pulls people in. Video ads let you tell stories, demonstrate products, or make an emotional connection—all in seconds. Whether you’re showing off new features or walking viewers through a case study, video works especially well mid-funnel when context and clarity matter.

Native Ads

Native ads slip into content feeds almost invisibly. They don’t shout—they whisper, offering helpful or interesting info right where the user is already looking. Think promoted articles, how-to guides, or even product comparisons. Done right, they build trust and drive action without feeling pushy.

Interactive and Expandable Ads

Want someone to spend time with your ad? Make it move, respond, expand, or play. Interactive formats can gamify brand experiences, invite exploration, or adapt based on user behaviour. They’re not for every campaign, but when the goal is engagement, they shine.

Where Display Ads Appear

Google Display Network (GDN)

The GDN is one of the largest ad networks in the world, giving access to millions of websites, apps, and even YouTube and Gmail placements. If your goal is to reach, this is where you start. It’s tightly integrated with Google Ads, which means it’s relatively easy to launch, manage, and track campaigns.

Programmatic Ad Platforms

Programmatic platforms offer automated, real-time ad buying, delivering your message to the right user at the right time. Tools like DV360, The Trade Desk, and Amazon DSP allow marketers to layer in targeting, frequency capping, and budget optimisation. These platforms are a smart choice for those looking for scale and control.

Social Networks

While technically distinct, many social platforms offer display-like ad placements. Facebook, Instagram, and LinkedIn support visual ads that appear in feeds or sidebars, blending native design with display mechanics. These channels benefit from rich behavioural data, making them ideal for audience refinement and B2B targeting.

Display Ads vs Search Ads

Intent vs Awareness

Search ads are triggered by specific queries—users actively looking for something.  That means high intent.  Display ads, on the other hand, are proactive.  They reach users who aren’t necessarily searching but may still be interested.  Think brand storytelling versus direct problem-solving.  The two aren’t interchangeable—they’re allies with different strengths.

Ad Formats and Placements

Search ads usually appear as text snippets on search engine results pages (SERPs).  They’re functional and keyword-driven, aimed at capturing intent in the moment.  Display ads, by contrast, lean heavily on visuals and appear across third-party sites, apps, and video platforms.  It’s a creative play versus a keyword trigger.

Cost Differences and Budget Strategy

Display advertising often offers lower CPCs, especially for broad-reach campaigns.  Search can be more expensive, but it delivers higher conversion intent.  The key is balance: use display to build awareness and nurture leads, and search to capture demand when users are ready to act.

When to Use Display, Search, or Both

Use display when you need to reach a wide audience, educate, or build brand recall, especially higher up in the funnel.  Use search to capture traffic from users who are problem-aware and actively looking. But best of all?  Use both.  A blended strategy gives you coverage across the buyer journey, with each channel amplifying the other’s strengths.

If you’re feeling a bit overwhelmed, be sure to get in touch with a PPC consultant such as Common Ground for a no-strings-attached discussion.

How Display Advertising Works

Ad Placements and Inventory

Display ads appear in spaces made available by publishers—think news sites, blogs, or mobile apps. These ad spaces, or inventory, are brokered through networks and exchanges. Whether it’s a sidebar, in-feed spot, or full-page takeover, placement matters. And thanks to real-time bidding, these decisions happen in milliseconds.

Bidding and Auction Models

Every time an ad is eligible to be shown, an auction takes place. Advertisers bid based on how much that impression is worth to them. You’ll encounter models like:

• CPM (Cost per Mille): Pay per 1,000 views.
• CPC (Cost per Click): Pay only when someone clicks.
• CPA (Cost per Acquisition): Pay when a user completes a desired action.

Choosing the right model depends on your campaign goals—awareness, engagement, or conversions.

Targeting Types

Contextual Targeting

Ads are placed based on the content of the page—your finance ad shows up on a finance blog. It’s privacy-friendly and works well post-cookie.

Behavioural Targeting

This method tracks user behaviour—sites visited, searches made—to build a profile and deliver relevant ads. It’s powerful but increasingly affected by privacy restrictions and browser changes.

Geo-Targeting

Display ads can be delivered based on geographic location, from country and city down to a precise radius. Ideal for local businesses or region-specific campaigns.

Retargeting

Ever browse a product and then see it advertised everywhere you go? That’s retargeting. It focuses on people who’ve already visited your site, nudging them to come back and convert. It’s especially effective for warm leads and abandoned carts.

Programmatic Advertising Explained

Programmatic advertising automates the buying process. Rather than negotiating with publishers directly, you use a platform that leverages data, algorithms, and machine learning to purchase and place ads in real time. This results in better targeting, faster campaign execution, and often, more efficient spending.

Real-World Display Advertising Examples

Best Practices from Top Brands / Clients

Successful display campaigns often share a few traits: bold, clear creative; precise targeting; and a goal that aligns with the user’s stage in the funnel. Take SaaS brands, for example. They frequently use video or interactive formats to demystify complex offerings and build trust early. Or consider B2B service firms using native ads to promote guides and case studies that nurture interest over time.

Why These Ads Work

The best ads don’t just look good—they’re grounded in strategy. Whether it’s segmenting audiences by role and industry, testing CTAs for different stages, or timing retargeting to follow up on key page visits, the secret lies in the details. A high-performing ad understands who it’s speaking to, what pain points it needs to address, and how to guide the viewer to the next step.

Lessons You Can Apply

• Use simple messaging and sharp visuals to get attention quickly.
• Match ad formats to funnel stages: banners and native for awareness; video for storytelling; retargeting for conversions.
• Layer targeting options to sharpen relevance.
• Refresh creatives regularly to avoid fatigue.
• Track more than clicks—look at viewability, scroll depth, and assisted conversions.

Display ads aren’t magic, but when done right, they’re remarkably effective.

How to Create a Display Advertising Strategy

Define Your Campaign Goals

Every successful display campaign begins with clarity. Are you aiming for brand awareness, lead generation, website traffic, or direct sales? Your goals will shape everything—from format to budget to measurement. Think in terms of KPIs: impressions, CTR, conversions, ROAS—define success before you launch.

Know Your Target Audience

Who are you trying to reach? Go beyond demographics. Use customer personas, sales data, and behavioural insights to define your ideal user. What do they care about? What problems do they need solving? The clearer your audience profile, the more tailored and effective your creative and targeting can be.

Choose the Right Platforms

Not every platform is created equal. If broad reach is the priority, GDN is your go-to. Need advanced targeting or niche placements? Programmatic platforms offer precision and scale. Want to layer in social intent? Facebook, LinkedIn, and Instagram offer unique behavioural data and native-style formats. Match your platform to your objectives.

Design Effective Ad Creatives

Good design stops the scroll. Great design drives action. Focus on clarity, relevance, and visual appeal. Your messaging should speak directly to your audience’s mindset at that stage in the funnel. Use strong headlines, punchy copy, and a visible CTA. And test—because even small tweaks can deliver big gains.

Set Budget and Bidding Strategy

Budgeting isn’t just about spending—it’s about allocation. Allocate more to proven audiences or key funnel stages. Choose your bid model (CPM, CPC, CPA) based on your campaign’s purpose. Leave room for testing, iteration, and scale. Smart bidding, especially with automation, can stretch your budget further.

Launch and Optimise

Launching is only the beginning. Set up conversion tracking, link goals to your analytics, and watch your data closely. Monitor performance across placements, creatives, and audience segments. Don’t wait weeks to adjust—test early, test often. A/B test headlines, visuals, formats, and even colours. The best campaigns evolve.

Key Metrics for Measuring Success

Impressions and Click-Through Rate (CTR)

Impressions tell you how often your ad is seen. It’s a top-of-funnel metric, but volume alone isn’t the goal. CTR, or click-through rate, shows how effective your creative and messaging are. A high CTR indicates that people find your ad relevant or engaging enough to act.

Viewability and Engagement

Not all impressions are created equal. Viewability measures whether your ad was seen (i.e., displayed on the screen long enough to register). Engagement metrics—like hover time, scroll depth, or clicks on interactive elements—tell you how your audience is interacting with the creative beyond the click.

Conversion Tracking

This is where you connect ad performance to business impact. Track specific actions: form fills, demo requests, sign-ups, purchases. Use thank-you pages, event tracking, or conversion pixels to attribute outcomes directly to campaigns.

Cost-Per-Click (CPC) and Return on Ad Spend (ROAS)

CPC gives you a read on how efficiently you’re generating traffic. But traffic alone isn’t the point. ROAS—revenue generated per pound spent—is the real north star. It ties spend to value, helping you decide which ads are worth scaling.

Attribution and Multi-Touch Models

Most users don’t convert after a single click. Attribution models help you understand the role display ads play in the broader journey. Move beyond last-click models to multi-touch or data-driven attribution to capture the full picture. Display might assist rather than convert, but that assistance could be vital.

Common Challenges & How to Overcome Them

Banner Blindness

Audiences have become desensitised to traditional banner ads, especially when they appear in predictable places. To combat this, refresh your creative assets regularly. Experiment with rich media formats and native placements that better integrate with content and surprise the user visually.

Ad Fatigue

Seeing the same ad over and over? That’s a fast track to disengagement. Rotate creative and messaging based on user behaviour and funnel stage. Break larger audiences into smaller segments to tailor your approach and reduce overexposure.

Viewability and Fraud

Not all ad impressions are equal—some might never actually be seen, while others could be triggered by bots. Prioritise placements with high viewability scores and work with networks that offer transparency and verification tools. Use fraud detection and routinely audit traffic sources.

Cookie Deprecation and Privacy Laws

As third-party cookies phase out, relying solely on behavioural data is risky. Lean into contextual targeting, first-party data, and consent-based marketing. Tools like GA4, server-side tagging, and customer data platforms (CDPs) can help bridge the gap.

A/B Testing for Continuous Improvement

The biggest mistake? “Set it and forget it.” Regularly test your creatives, messaging, and targeting strategies. Small changes like a headline tweak, a colour shift, or a CTA variation can make a big difference. The most successful advertisers never stop iterating.

Standard ad sizes on Google

Variety is the spice of life when it comes to display advertising through Google. There are a wide range of ad sizes to choose from, allowing you to test which format works best for your ad campaigns.

The current supported ad sizes for Google Display ads are:

Category	Ad Name	Dimensions (px)
Square & Rectangle	Small Square	200 × 200
	Vertical Rectangle	240 × 400
	Square	250 × 250
	Triple Widescreen	250 × 360
	Inline Rectangle	300 × 250
	Large Rectangle	336 × 280
	Netboard	580 × 400
Skyscraper	Skyscraper	120 × 600
	Wide Skyscraper	160 × 600
	Half-Page Ad	300 × 600
	Portrait	300 × 1050
Leaderboard	Banner	468 × 60
	Leaderboard	728 × 90
	Top Banner	930 × 180
	Large Leaderboard	970 × 90
	Billboard	970 × 250
	Panorama	980 × 120
Mobile-Only	Mobile Banner	300 × 50
	Mobile Leaderboard	320 × 50
	Large Mobile Banner	320 × 100

 

When uploading your standard image ads for use on the Google Display Network, make sure you upload your ad in a variety of sizes to ensure it will be displayed across different mobile and desktop placements.

Why display advertising is important: a wrap-up

Display Advertising in an Omnichannel Strategy

No marketing channel works in isolation, and display is no exception. Used well, it reinforces your message across search, social, email, and content. Especially in long B2B cycles, repeated exposure through display helps build familiarity, trust, and momentum. It’s not about stealing the spotlight—it’s about being consistently present where your prospects are.

When to DIY vs Hire an Agency

If you’ve got an in-house team, some tools, and the time to experiment, DIY might get you started. But when scale, strategy, and performance matter, a specialist agency can make the difference. Agencies bring tested frameworks, creative firepower, and the ability to course-correct fast, so you don’t burn budget learning the hard way.

Next Steps for Your Business

Look at your current digital funnel: where are the gaps in visibility, awareness, or nurturing? That’s where display ads can do the heavy lifting. Start small, test smart, and if you want a shortcut to results, bring in an expert team that’s been there, done that, and optimised it already.

Get Expert Help with Your Display Campaigns

Contact Common Ground for a Free Digital Marketing Growth Call

Ready to get more from your display advertising? Book a no-obligation strategy call with the team at Common Ground. We’ll help you uncover untapped opportunities, troubleshoot underperforming campaigns, and map out a smarter paid media plan.

Whether you’re just getting started or scaling an established program, we bring deep PPC expertise, creative firepower, and a sharp focus on ROI. Think of it as your shortcut to better performance, with fewer missteps along the way.

Let’s make your ad budget work harder. Schedule your growth session today.