• General, Logo & branding

What are Display Ads and Are They Effective?

A striking 91% of consumers prefer brands that understand their interests and provide relevant offers. Display ads have become a critical element of digital marketing, combining text, images, and clickable links to attract and engage audiences across the web.

The Google Display Network (GDN) reaches over 90% of internet users worldwide, appearing across more than 3 million websites and apps. While traditional banner ads have lower click-through rates (CTR), display ads excel in increasing brand awareness and reaching highly targeted audiences. Their cost-effective nature and real-time data tracking make them a powerful tool for businesses looking to scale.

This guide explores the role of display ads, their effectiveness, and best practices to maximize their potential. Whether launching your first campaign or refining an existing strategy, understanding display advertising will help you achieve better results.

What Are Display Ads?

Display advertising involves visual-based digital ads placed on websites, apps, and social media platforms. Unlike search ads, which appear based on user queries, display ads use audience targeting to position brand messaging before potential customers actively search for products or services.

                           

Types of Display Ads

  • Traditional Display Ads: Standard banner or sidebar ads targeting users based on interests, demographics, and browsing behaviour.
  • Responsive Display Ads: Automatically adjust size, appearance, and format to fit different placements and screen sizes, optimizing engagement.
  • Retargeting Ads: Serve ads to users who have previously visited a website but didn't convert, increasing return rates.
  • Native Display Ads: Blend seamlessly into content, providing a non-disruptive ad experience.
  • Rich Media Ads: Incorporate interactive elements such as animation, video, and clickable features for higher engagement.

Key Components of Effective Display Ads

  • Compelling Visuals: High-quality images or videos that align with brand aesthetics.
  • Concise Messaging: Clear, value-driven copy that resonates with the target audience.
  • Brand Consistency: Integrate logos, colours, and fonts while ensuring natural placement.
  • Strong Call-to-Action (CTA): Directs users to take immediate action, such as signing up, purchasing, or learning more.
  • Data-Driven Adjustments: Monitor CTR, conversion rates, and impressions to refine ad performance.

How Display Ads Work in Digital Marketing

The evolution of digital marketing has positioned display advertising as a core strategy for brand visibility and audience engagement. Businesses leverage ad networks and programmatic solutions to enhance targeting and budget efficiency.

Google Display Network (GDN) Overview

  • Compelling Visuals: Concise Messaging: Clear, value-driven copy that resonates with the target audience.
  • Brand Consistency: Integrate logos, colours, and fonts while ensuring natural placement.
  • Strong Call-to-Action (CTA): Directs users to take immediate action, such as signing up, purchasing, or learning more.
  • Data-Driven Adjustments: Monitor CTR, conversion rates, and impressions to refine ad performance.

Benefits of Display Advertising for Businesses

Brand Awareness & Visibility

Display ads enhance brand presence by maintaining visibility throughout a customer’s online journey. Industries like real estate and eCommerce benefit significantly, with CTRs exceeding 1% in some cases.

Lead Generation Potential

By leveraging audience targeting, businesses can attract high-quality leads. Custom affinity audiences and in-market segments help refine campaigns to reach users actively considering a purchase.

Cost-Effectiveness & Budget Efficiency

Compared to search advertising, display ads offer lower cost-per-click (CPC) rates, averaging AUD 0.96, making them an affordable option for businesses of all sizes. The cost-per-thousand impressions (CPM) model allows for budget-friendly brand awareness campaigns.

Understanding Display Ad Costs & Budgeting

Pricing Models

  • Cost Per Click (CPC): Advertisers pay per user click (AUD 0.76–3.06 average).
  • Cost Per Thousand Impressions (CPM): Payment per 1,000 views (AUD 4.59–15.29 average).
  • Cost Per Acquisition (CPA): Charges apply for completed conversions.

Budget Allocation Strategies

  • Smart Scheduling: Optimize campaign performance by running ads at peak engagement times.
  • Geographic Targeting: Focus budgets on high-converting locations.
  • Device-Specific Bidding: Adjust bids based on desktop vs. mobile performance.

Targeting Options for Display Ads

Sun Media has extensive experience managing Instagram advertising campaigns that drive measurable results.

Advanced Audience Segmentation

  • Affinity Audiences: Reach users based on long-term interests (e.g., fitness, travel, technology).
  • In-Market Audiences: Target users actively researching products or services.
  • Lookalike Audiences: Expand reach by targeting users with similar behaviors to existing customers.

Geographic & Behavioural Targeting

  • Location-Based Targeting: Set specific regions, cities, or even postcode-level focus.
  • Behavioural Retargeting: Serve ads to users who previously interacted with your website or content.

Measuring Display Ad Performance

Key Performance Indicators (KPIs)

  • Click-Through Rate (CTR): Measures ad engagement.
  • Conversion Rate: Tracks the percentage of users completing desired actions.
  • Cost Per Acquisition (CPA): Evaluates campaign efficiency.
  • Return on Ad Spend (ROAS): Assesses overall profitability.

Real Success Stories: Optical Superstore & HomeGuardian

                                       

Optical Superstore: Leveraging Display Ads for Increased Visibility

Sun Media developed a targeted display ad campaign for Optical Superstore, focusing on increasing brand awareness and customer engagement. By utilizing responsive display ads and retargeting, the campaign resulted in:

  • 27.8% growth in eCommerce sales over 23 weeks.
  • 30% of total sales attributed to display advertising.
  • 43% increase in new customer acquisition.

Read the full case study here.

HomeGuardian: Smart Budgeting for Maximum ROI

HomeGuardian’s display ad strategy prioritized budget efficiency and targeted advertising. Sun Media implemented a multi-channel approach incorporating display and search advertising, leading to:

  • Higher lead conversion rates with optimized ad placements.
  • Improved audience segmentation through behavioral targeting.
  • Greater engagement with dynamic and responsive display ads.

Read the full case study here.

                                       

Common Display Ad Mistakes to Avoid

  • Over-restricting audience targeting: Limits reach and potential conversions.
  • Neglecting mobile optimization: Reduces ad visibility on mobile-heavy platforms.
  • Ignoring data-driven refinements: Failing to adjust campaigns based on performance analytics.

Conclusion

Display advertising remains a cost-effective and scalable way to increase brand visibility, generate leads, and improve ROI. Businesses that leverage smart audience targeting, optimized bidding, and real-time performance tracking can maximize the impact of their ad spend.

Sun Media has extensive experience in Google Ads and Meta advertising, helping businesses strategically allocate budgets and optimize ad performance. Want to refine your display advertising approach? Book a free consultation today.

 

FAQs

How do display ads differ from search ads? Display ads proactively introduce brands to potential customers, while search ads respond to direct queries.

What is the average CPC for display advertising? The Google Display Network averages between AUD 0.76 and 3.06 per click.

How can businesses improve display ad ROI? Optimizing targeting, using AI-driven bidding, and continuously refining campaign performance can enhance ROI.

Why is retargeting important in display advertising? Retargeting keeps brands top-of-mind, increasing conversion rates by re-engaging users who previously interacted with your site.

What role does Sun Media play in display advertising success? Sun Media specializes in budget-efficient, data-driven Google Ads strategies to maximize engagement and ROI for businesses of all sizes.

Nicole Antees Creative Director

With 23 years of experience in marketing for small businesses, medium enterprises, and national brands, Nicole brings a wealth of hands-on expertise. Her portfolio includes work with prominent brands such as Optical Superstore, Nutrition Warehouse, and Raine and Horne, as well as small to medium-sized businesses like Qld Bathroom Renovations and Gourmet Meals, where she has dedicated 8 years of service.

VIEW PROFILE