What Are Display Ads? Types, Metrics, and Optimization Tips

What are Display Ads?

Display ads are visual advertisements shown on websites, apps, and social media platforms. They combine images, text, and sometimes animation to catch users’ attention and drive action. Think of them as the digital evolution of traditional print ads!

Common types of display ads include:

Banner ads
Image ads
Rich media ads
Responsive ads
Interactive ads

👆 Fun Fact: The first banner ad appeared in 1994 on HotWired.com (now Wired.com) and had an astounding click-through rate of 44%! Today’s rates are much lower, but the targeting is way smarter.

Why Display Ads Matter

Understanding display ads is crucial because they:

Build brand awareness
Reach users at scale
Offer precise targeting
Provide visual storytelling opportunities
Work well for remarketing

Types of Display Ads

Static Display Ads

Standard images
Fixed dimensions
Simple messaging
Clear call-to-action

Animated Display Ads

GIF animations
HTML5 animations
Multiple frames
Dynamic content

Rich Media Ads

Interactive elements
Video content
Expandable formats
Sound integration

Standard Display Ad Sizes

Most common dimensions (in pixels):

300 x 250 (Medium Rectangle)
728 x 90 (Leaderboard)
160 x 600 (Wide Skyscraper)
320 x 50 (Mobile Banner)
300 x 600 (Half Page)

Key Metrics for Display Ads

Track these important metrics:

Impressions: Total times your ad is shown
Click-through rate (CTR): Percentage of viewers who click your ad
Cost per click (CPC): Cost of each click
Cost per thousand impressions (CPM): Cost for 1,000 ad impressions
Conversion rate: Percentage of clicks leading to desired actions
View-through conversions: Conversions after viewing (but not clicking) the ad

Best Practices for Display Ads

Design Tips

Clear messaging
Strong visuals
Brand consistency
Compelling call-to-action (CTA)
Clean layout

Targeting Strategies

Demographic targeting
Interest-based targeting
Behavioral targeting
Contextual targeting
Remarketing

Performance Optimization

A/B testing
Multiple ad sizes
Responsive design
Regular refreshes
Performance monitoring

Cost Models for Display Ads

CPM (Cost Per Mille): Pay per thousand impressions; good for awareness campaigns; typical range: $1-$5 CPM.
CPC (Cost Per Click): Pay only for clicks; varies widely by industry.
CPA (Cost Per Action): Pay for specific actions; lowest risk but higher rates.

Display Ads