Display Ads: Your Visual Guide to Reaching More Customers

Display ads are visual advertisements, typically in the form of banners, that appear on websites and apps. These ads are highly effective for reaching target audiences across multiple platforms and boosting visibility.

They can often be spotted while reading online articles, watching videos, or playing mobile games.

Are Display Ads Right for Your Strategy?

The suitability of display ads depends on your goals and audience.

While display advertising may not be the ideal choice for every brand, it can effectively complement other marketing efforts when used strategically.

Here are a few examples of how different brands leverage digital display ads.

Casper

Casper is an e-commerce brand specializing in mattresses, pillows, and sleep-related products.

They use display ads to promote limited-time offers and share customer experiences.

A Casper ad showcasing a family on a mattress with a “Shop at Target.com” call-to-action (CTA) highlights their approach.

Most of their ads focus on specific products from their catalog, combined with discounts or special offers.

Casper experiments extensively with various types of display ads—AdClarity data reveals they’ve used over 4,000 unique display ads in the U.S. in the past year.

The majority of their ads (80%) are displayed below the fold, helping them maintain a low average cost per thousand impressions (CPM) of $4.35.

Additionally, they purchase most of their ad space (55%) directly from publishers, further reducing costs.

ActiveCampaign

ActiveCampaign is a leading marketing automation software company. They utilize display ads to build brand awareness among cold audiences.

An ActiveCampaign ad promoting email marketing with bold text and a “Try it free” button exemplifies their strategy.

Unlike Casper, ActiveCampaign relies heavily on programmatic advertising for most of their display ad campaigns.

Although this approach doesn’t secure the best ad deals, the vast majority (88%) of their ads are placed below the fold. This focus on below-the-fold placements keeps their CPM low at $2.84.

As a result, they can affordably reach a large audience.

Expedia

Expedia is a travel platform offering hotel reservations, flight bookings, car rentals, and more. They use display ads to inspire travel through compelling creatives.

An Expedia ad promoting Portland tourism with a “Plan your getaway” CTA demonstrates their approach.

Expedia combines programmatic advertising with direct ad buys to achieve a CPM of $2.90 while keeping most of their ads above the fold.

The company spends nearly $40,000 monthly on display ads alone. This significant investment likely helps them secure favorable rates on popular sites like Yahoo, Vrbo, and Fox News.

Given their substantial ad spend, frequent A/B testing is crucial to maximize returns.

AdClarity data shows they’ve tested over 2,200 ad variants in the past year. Many of these variations are similar, with only minor changes to optimize performance.

Best Practices for Display Ads

To make the most of display advertising, focus on strategies like retargeting, leveraging the Google Display Network (GDN), and crafting high-quality ad creatives.

• Banner ads remain a staple, but native ads are gaining popularity for their seamless integration.
• Cost-per-click (CPC) is a key metric to monitor for evaluating campaign success.
• Retargeting can help re-engage potential customers who have shown interest in your brand.

By implementing these techniques, marketers can enhance their display ad strategies and drive better results.

How Display Advertising Works

There are three primary methods through which display ads are bought and sold:

1. Direct Buying: This involves negotiating directly with a publisher (e.g., a website) to place ads in a specific location for a set time and price. While direct buys provide control over ad placements, they can be challenging to manage and scale effectively.
2. Ad Networks: Advertisers can purchase ad space through ad networks like the Google Display Network. This approach allows ads to be displayed across multiple sites while targeting audiences based on interests or behaviors.
3. Programmatic Advertising: This method involves buying and selling ad space through an auction-based system on ad exchange platforms. Programmatic advertising provides access to a much larger inventory compared to traditional ad networks. It also offers greater control over bidding and enhanced transparency regarding ad placements.

Tips for Effective Display Ad Campaigns

Use these tips to ensure your display ad campaigns deliver a positive return on investment.

1. Choose the Right Platform for Your Audience

When selecting the ideal advertising platform, consider the following questions:

• Where does my target audience spend most of their time online?
• What type of content do they engage with the most?
• What level of targeting, control, and reach is required for my campaign?

Next, evaluate the following popular options:

• Google Display Network: According to Google, its Display Network reaches over 90% of internet users worldwide. It’s an excellent choice for brands looking to display ads in specific contexts. For example, a fitness brand might choose to advertise only on health blogs and nutrition forums.
• Microsoft Audience Network: The Microsoft Audience Network allows ads to be displayed across properties like MSN, Outlook, and LinkedIn. It’s particularly beneficial for B2B advertisers aiming to reach a professional audience. For instance, a B2B SaaS company could use this platform to target CMOs or other decision-makers.
• Programmatic Advertising Platforms: Platforms like The Trade Desk, StackAdapt, and AdRoll provide access to ad inventory across multiple ad exchanges. These platforms are ideal for scaling campaigns beyond networks like Google and Microsoft, making them suitable for advertisers seeking broader reach and advanced targeting capabilities.

By carefully selecting the right platform and leveraging the strengths of each option, marketers can maximize the effectiveness of their display advertising efforts.

2. Write Strong Copy and CTAs

Typically, display ads have only a few seconds to capture users’ attention. With limited space for text, your ad copy and call-to-action (CTA) must be concise yet compelling.

Craft effective copy and CTAs by following these best practices:

• Focus on benefits: Don’t just describe what your product or service does—highlight how it improves users’ lives. Let them know what they’ll gain from choosing your brand.
• Make it specific: Specificity drives conversions, but ensure you can substantiate any claims. For example, “Grow your revenue by up to 30%” is more impactful than vague promises.
• Use action-oriented language: Your CTA should guide users on what to do next. Use strong, compelling verbs like “Buy Now,” “Sign Up,” or “Learn More.”
• Be clear: Clarity is more important than cleverness. Ensure your CTA leaves no room for confusion. For instance, “Start Free Trial” is clearer and more direct than “Take the Leap.”
• Use personalization: Tailor your ad copy and CTA to resonate with users. Mention their location, preferences, or other relevant details. For example, “Find car deals in Boston” feels more relevant to local audiences.
• Create a sense of urgency: Encourage immediate action by adding urgency to your ad copy. Phrases like “Promotion ends tonight” or “Limited-time offer” work well, especially for time-sensitive campaigns or discounts.

3. Research Competitors’ Strategies

Analyzing competitors’ advertising campaigns provides valuable insights into what’s working—and what isn’t. This research can help refine and improve your own campaigns.

Tools like AdClarity allow you to explore competitors’ ad spend, campaign types, and actual ads.

To get started, visit the “Advertisers” section and enter a competitor’s domain. The tool will generate a detailed report.

At the top, you’ll find the competitor’s total ad spend, along with a breakdown of the ad types and buying methods they’re using.

Scroll to the “Top Ads” section to view the actual ads they’re running.

For example, Zillow’s top-performing display ads are shown with impression counts and spend totals, sorted by the highest expenditure.

Zillow’s top-performing display ads shown with impressions and spend totals, sorted by highest spend

The “Top Publishers” section reveals where competitors’ ads are being displayed.

By studying this data, you can identify trends, uncover opportunities, and avoid pitfalls in your display advertising strategy.

4. Use Compelling Visuals

Visuals are the cornerstone of display ads, so it’s essential to invest time in getting them right.

Follow these tips to create impactful visuals for your display ad campaigns:

• Use high-quality images: Blurry, low-quality, or generic stock images can make your ads appear less credible and reduce engagement.
• Keep it simple: Ensure your visuals highlight a single focal point—whether it’s your product, a person, or a headline—to draw users’ attention effectively.
• Have a unified look: Your ad visuals should align with your brand identity. Use consistent colors, fonts, and styles to ensure instant brand recognition.
• Design for small screens: Smartphones account for 68% of device share in digital display ad campaigns. Make sure your visuals are clear, legible, and visually appealing on smaller screens.
• Use animation sparingly: While animation can capture attention, it shouldn’t distract from your ad’s main message. If you incorporate animation, opt for smooth, subtle motions that enhance the visual without overwhelming users.

5. Optimize Your Ad Placements and Formats

Choosing where and how your ads are displayed is critical for maximizing the effectiveness of your advertising campaigns.

Follow these tips to optimize ad placements (sites and apps) and formats for your display ad campaigns:

• Experiment with manual and automatic placements: Let the ad network decide where your ads will appear initially. Once you gather enough data and identify top-performing sites, focus your budget on those placements.
• Audit placements regularly: Continuously review and exclude low-performing placements from your campaigns. This prevents wasted ad spend and improves your return on investment.
• Try multiple ad formats: Different audiences engage with different ad formats. Some may respond better to static ads, while others prefer video or interactive formats. Test various formats to determine what resonates best with your target audience.

6. A/B Test Different Ad Variations

A/B testing helps identify the highest-performing version of an ad by serving two variants to different audience segments simultaneously and comparing their results.

Before starting an A/B test, set a clear goal—such as improving click-through rates or driving more conversions. A well-defined objective ensures your test is focused and that you measure the right metrics.

It’s crucial to test one variable at a time—such as ad copy, visuals, or CTAs—while keeping all other elements constant. This approach isolates the impact of each change, helping you understand what drives improved performance.

For example, testing both the image and headline simultaneously can lead to unclear results. However, changing just the image allows you to pinpoint its specific impact. The version with only the image changed is marked as correct in this scenario.

Ensure your A/B test has a sufficiently large sample size, whether measured in impressions or conversions. Tools like CXL’s A/B Test Calculator can help determine the appropriate sample size for accurate results.

How to Measure the Impact of Your Display Ads and Adjust

Continuously monitor ad performance and refine your campaigns to achieve better outcomes.

The key metrics to track depend on your campaign goals but may include:

• Impressions: The number of times your ad is served and appears on users’ screens.
• Click-through rate (CTR): The percentage of users who click on your ad relative to how many times it was viewed.
• Conversion rate: The percentage of users who complete a desired action—such as signing up or making a purchase—after clicking on your ad.
• Cost per action (CPA): The amount spent to generate a single conversion, such as a purchase or sign-up.
• Return on ad spend (ROAS): The revenue generated for every dollar spent on ads.

Analyze these metrics by device type (desktop vs. mobile), placement (specific websites or apps), audience segments, and creative differences from A/B tests. Look for patterns to identify areas for improvement and determine whether adjustments are needed in targeting, creatives, or other aspects of your campaign.

Enhance Your Display Ad Strategy

When executed effectively, display ads can consistently drive brand awareness, traffic, and conversions.

For optimal results, A/B test your ads to identify the top-performing variants.

The AdCreative.ai app can assist in generating on-brand creatives for your campaigns.

To get started, set up your brand by entering your website or providing details such as logos, colors, and fonts. Then, click “Create Brand.”

Brand setup screen with fields to import a website, enter branding, and create a branded ad kit.

On the next screen, select “Ad Creatives.” Choose the ad size, input your ad copy, and upload a background image.

Click “Generate,” and the app will produce multiple versions of the ad.

AI-generated ad creatives ranked by conversion score, available for editing or download.

From this point, you can download the ads you wish to use for your A/B tests.

By leveraging tools like AdCreative.ai and following best practices, you can streamline the creative process and optimize your display ad strategy for maximum impact.