TL;DR Summary:
Display Ads Essentials: Visual banners, videos, and native formats appear on websites, apps, and social media to reach browsing customers through direct, network, or programmatic buying.Proven Brand Strategies: Casper achieves low $4.35 CPM with below-fold placements and direct deals, ActiveCampaign uses programmatic for $2.52 CPM, while Expedia tests 8,000 ad variations monthly.Optimization Secrets: Focus on benefit-driven copy, mobile-friendly visuals, A/B testing, and metrics like CTR, conversions, and ROAS to maximize performance and budget efficiency.Display Ads: Your Complete Guide to Visual Advertising Success
Display ads are visual advertisements like banners and videos that appear across websites, apps, and social media platforms. These ads help brands reach potential customers while they browse content, watch videos, or play games online.
How Display Ads Actually Work
Brands buy display ads through three main methods. Direct buying means striking deals directly with publishers for specific placements. Ad networks like Google Display Network let you place ads across multiple sites at once. Programmatic advertising uses automated platforms to buy ad space across larger inventories.
Most display ads use two pricing models. Cost per click (CPC) charges you only when someone clicks your ad. Cost per thousand impressions (CPM) charges based on how many times your ad appears.
Real Brand Success Stories
AdPeekr research reveals how top brands approach display advertising differently.
Casper used 467 different display ads over 12 months. They keep costs low by placing 77% of ads below the fold, achieving a $4.35 CPM. Most of their placements come through direct publisher deals.
ActiveCampaign relies heavily on programmatic advertising for 90% of their campaigns. They maintain a low $2.52 CPM by placing most ads below the fold.
Expedia spends $150,000 monthly on display ads alone. They ran over 8,000 different ad variations last year, showing the power of constant testing.
Common Display Ad Formats
Banner ads appear as image-based placements in fixed locations. Native ads blend seamlessly with surrounding content. Video ads play short clips on websites and apps. Interstitial ads take over full screens between content transitions.
Responsive display ads automatically combine your uploaded assets into different layouts. Retargeting ads target users who previously visited your website.
Platform Selection Strategy
Choose platforms based on where your audience spends time. Google Display Network reaches over 90% of internet users worldwide. It works well for contextual targeting, like fitness brands advertising on health blogs.
Microsoft Audience Network covers MSN, Outlook, and LinkedIn properties. This platform suits B2B advertisers targeting professional audiences.
Programmatic platforms like The Trade Desk offer access to multiple ad exchanges. Use these for scaling beyond traditional networks.
Creating Effective Display Ad Content
Write copy that focuses on clear benefits rather than features. Make your claims specific and actionable. Use compelling verbs in your calls-to-action like “Buy Now” or “Start Free Trial.”
Add urgency with phrases like “Promotion ends tonight.” Personalize content by mentioning user locations or interests.
Keep visuals simple with single focal points. Use high-quality images that align with your brand colors and fonts. Design for mobile screens since smartphones account for 68% of display ad views.
Testing and Optimization Tactics
Start with automatic placements, then switch to manual once you identify top performers. Remove low-performing sites regularly to improve return on ad spend.
Test different ad formats to find what resonates with your audience. Some users prefer static images while others engage more with video content.
Run A/B tests on single variables at a time. Set clear goals before testing and ensure adequate sample sizes for reliable results.
Measuring Display Ad Performance
Track impressions to see how often ads appear. Monitor click-through rates to measure engagement levels. Calculate conversion rates to understand how many clicks become customers.
Cost per action shows spending efficiency per conversion. Return on ad spend reveals revenue generated per dollar invested.
AdPeekr helps track how long competitor ads actually run before burning out. This prevents copying ads that only worked temporarily.
Monitor branded search volume increases following campaigns. Rising branded searches often indicate improved awareness from display ads.
Smart Budget Allocation
Experiment with different ad sizes and positions. Below-the-fold placements cost less but may receive fewer clicks. Above-the-fold positions cost more but generate higher engagement.
Allocate budget based on performance data rather than assumptions. Successful display ads require ongoing optimization and testing.
How long do you think your competitors’ winning ads actually lasted before they stopped working?
