Display advertising is one of the oldest forms of digital marketing — the banner ads, image placements, and rich media units that appear across websites and apps. Many founders encounter display ads as consumers without fully understanding how they work commercially. Understanding what display advertising is and when it is appropriate helps founders assess whether it belongs in their marketing mix.
Display advertising involves placing visual ads — images, graphics, or animated content — on websites and apps within an advertising network. Google Display Network is the largest such network, reaching a significant proportion of internet users across millions of websites. Ads can be targeted based on the interests or browsing behaviour of the user, the content of the website they are visiting, or audience segments defined by the advertiser.
Display advertising is more effective for building awareness with audiences who already know the business than for generating immediate conversions from cold audiences. Click-through rates tend to be low, and much of the value comes from repeated exposure rather than direct response. For most early-stage businesses, search and social advertising typically deliver more direct returns. Our guide to display advertising covers when it is and is not the right channel.