Key takeaways:
– Understand what display ads are.
– Learn where display ads appear.
– Discover why businesses use display ads.
– See how display ad campaigns work.
– Identify different types of display ads.
– Find out how to set up a simple campaign.
– Learn about basic targeting options.
– Understand how to see if ads are working.
This article explains the fundamentals of display advertising for people just starting. It covers what display ads are, where you see them, why they are useful for businesses, and the simple steps to get started with your own display ad campaigns. Reading this guide provides a clear understanding of the necessary concepts and actions to begin using display ads effectively.
Introduction
Seeing pictures and banners while browsing websites or using apps is very common. These visual advertisements are called display ads. They are a fundamental part of how many businesses show their products and services to potential customers when they are spending time online.
For anyone looking to advertise and reach a wide audience, understanding Display Ads Basics is a necessary first step. This guide is created to help beginners grasp the core ideas behind display advertising. It aims to make the concepts simple and clear, removing confusion so you can confidently take steps toward running your first display ad campaigns.
What are Display Ads?
Display ads are a form of advertising that uses images, animation, or video to communicate an advertising message. Unlike text-only ads (like those often seen on search results pages), display ads rely heavily on visual elements to capture attention.
Think of them like billboards you see on the side of a road, but instead of being on a highway, they are on websites, in apps, or on social media feeds. They can be static images, animated pictures (like GIFs), or even short videos. Their main job is to make a visual impression and make people aware of a brand, product, or service.
Display ads appear in designated spaces on websites and within applications. These spaces are made available by the website or app owners who want to earn money by showing advertisements. Advertisers then pay to have their ads placed in these spaces to reach people visiting those websites or using those apps.
Understanding Display Ads Basics begins with recognizing that these are visual messages placed in specific spots online to get noticed by many people.
Where Do Display Ads Appear?
Display ads are shown in many places across the internet. The most common places include:
- Websites: Many websites, especially news sites, blogs, and forums, have areas reserved for display ads. You might see them at the top, on the sides, within the content, or at the bottom of the page.
- Mobile Apps: Games, utility apps, and social media apps often show display ads in banners, full-screen interruptions, or native formats that blend with the app’s content.
- Social Media Platforms: While sometimes considered a separate category, ads on platforms like Facebook, Instagram, and others often use visual formats similar to traditional display ads, appearing within users’ feeds or in sidebars.
- Video Platforms: Before, during, or after watching videos, you might see display ads, sometimes as banners or as video ads themselves.
The specific websites and apps where your display ads appear depend on the advertising network you use and the targeting options you choose. Advertising networks act like a marketplace, connecting businesses who want to advertise with website and app owners who have space to show ads.
Why Use Display Ads?
Businesses use display ads for several important reasons. For beginners learning Display Ads Basics, it is helpful to know the main benefits:
- Building Awareness: Display ads are excellent for making many people aware of a brand or product. Because they are visual and appear on many different sites, they help keep a brand in people’s minds even if they are not actively searching for it.
- Reaching a Large Audience: Advertising networks can show your ads on millions of websites and apps. This allows businesses to reach a vast number of potential customers who might be interested in what they offer.
- Targeting Specific Groups: While they reach many people, display ads can also be shown to specific groups based on their interests, demographics (like age or location), or even what kind of websites they visit. This helps businesses show their ads to people who are more likely to become customers.
- Retargeting: A powerful use of display ads is showing them again to people who have previously visited your website but didn’t buy anything. This reminds them of your business and encourages them to return.
- Supporting Other Marketing: Display ads can work together with other advertising efforts, like search ads or social media posts, to create a stronger overall message.
Using display ads is a strategic way to stay visible and connect with potential customers across various online spaces, even when they are not actively searching for your business.
How Do Display Ads Work (Simply)?
Understanding how display ads operate involves learning about ad networks and the basic process of showing ads. This is a core part of Display Ads Basics.
At its most basic, display advertising works through automated systems called ad networks. Companies like Google, Facebook, and many others run large ad networks.
- Advertiser creates an ad: A business designs a visual ad (image, video, etc.) and decides who they want to show it to (their target audience) and how much they are willing to pay.
- Website/App owner offers space: A website or app owner makes space available on their site or app to show ads through the ad network.
- User visits a site/app: Someone visits the website or uses the app.
- Ad network finds an ad: In milliseconds, the ad network decides which ad to show to this specific person in the available space. It considers who the advertiser wants to reach, how much they will pay, and information about the user (like their interests or browsing history, if available). Often, this is done through a fast auction process where advertisers bid for the opportunity to show their ad.
- Ad is shown: The winning ad is displayed to the user.
The advertiser usually pays the ad network based on how many times their ad is shown (impressions) or how many times someone clicks on their ad. The ad network then shares some of that money with the website or app owner.
This automated system allows ads to be shown almost instantly to different people based on complex rules and targeting settings defined by the advertiser.
While the auction happens very fast, remember that the winning ad is often the one that provides the best value combination of bid amount and relevance to the user and website. A relevant ad that a user is likely to click is often favored by the system.
Types of Display Ads
Display ads come in various formats, each with different capabilities. For beginners, understanding these basic types is important:
- Image Ads: These are static pictures in standard sizes (like a rectangle, square, or banner). They contain a visual message, often text overlay, and a button or link. These are the most common type and are relatively simple to create.
- Rich Media Ads: These ads are more interactive. They might include animation, pop-ups, or elements that change when a user moves their mouse over them. They are designed to be more engaging than simple image ads.
- Video Ads: These are short video clips used as advertisements. They can appear on video platforms, websites, or in apps. Video is a powerful way to tell a story or demonstrate a product quickly.
- HTML5 Ads: These are created using web programming languages (HTML, CSS, JavaScript). They can be animated and interactive, often allowing for more complex designs and features than simple images. They resize well across different screen sizes.
Choosing the right type of display ad depends on your goal, your message, and where you want the ad to appear. A simple image ad is often a good start for beginners learning Display Ads Basics.
Setting Up Your First Display Ad Campaign
Starting your first display ad campaign involves a few logical steps. While the exact steps might vary slightly depending on the advertising platform (like Google Ads, Microsoft Advertising, etc.), the basic process is similar.
- Define Your Goal: What do you want your display ads to achieve? Do you want more people to know about your brand (awareness)? Do you want people to visit your website? Do you want them to buy something or sign up for a service? Having a clear goal helps you make decisions throughout the setup.
- Choose Your Audience: Who are the people you want to see your ads? Think about their age, location, interests, or the types of websites they visit. This is where you use targeting options.
- Set Your Budget: How much money are you willing to spend on these ads per day or over a specific period? Set a realistic budget that you are comfortable with. You can usually start small and increase it later.
- Create Your Ads (Ad Creative): Design the actual visual ads. This involves writing the text (headline, description), selecting or creating images/videos, and including a clear call to action (like “Learn More,” “Shop Now,” “Sign Up”). Ensure your ads meet the size and format requirements of the ad network.
- Choose Where to Show Ads (Placement/Networks): Select the specific websites, apps, or types of content where you want your ads to appear. Ad networks offer various ways to do this, from automatically placing ads on many sites to letting you choose specific sites.
- Launch and Monitor: Once everything is set up, you launch the campaign. After it starts running, it is important to regularly check how your ads are performing. This involves looking at metrics like how many times your ad was shown, how many people clicked it, and if people took the desired action (like buying something).
Following these steps systematically helps build a foundation for a display ad campaign. It ensures you have thought about the necessary components before spending money.
Targeting Options
Showing your display ads to the right people is important so your budget is used effectively. Display ad networks offer various ways to target your audience. Understanding these options is part of mastering Display Ads Basics.
Here are some common targeting methods:
- Demographic Targeting: Show ads based on characteristics like age range, gender, household income, or parental status.
- Interest Targeting: Reach people based on their interests and hobbies (e.g., people interested in sports, cooking, travel). Ad networks gather information about users’ interests based on the websites they visit and content they consume.
- Affinity Audiences: Similar to interest targeting but often broader groups showing a strong interest in a topic (e.g., “Cooking Enthusiasts,” “Travel Buffs”).
- In-Market Audiences: Target people who are actively researching products or services similar to yours, indicating they are close to making a purchase decision (e.g., people looking to buy a car, planning a trip).
- Topic Targeting: Place your ads on websites and content about specific topics (e.g., show your ad for sports equipment on sports news websites).
- Placement Targeting: Choose specific websites, apps, or even sections of websites where you want your ads to appear. This gives you more control over where your ad is seen.
- Remarketing (Retargeting): Show ads to people who have previously visited your website or used your app. This is a very effective targeting method because these people are already familiar with your business.
Combining different targeting methods can help you refine who sees your ads, making your campaign more efficient. Start with one or two methods that seem most relevant to your goal and audience.
For beginners, starting with interest targeting or remarketing is often effective. Interest targeting helps you reach new people likely to be interested, while remarketing targets people already familiar with your business, who may be easier to convert into customers.
Measuring Success
Once your display ads are running, you need to know if they are working. This involves looking at performance data, often called metrics. Understanding basic metrics is essential for anyone learning Display Ads Basics.
Here are some important metrics to check:
- Impressions: This is simply the number of times your ad was shown to someone. A high number of impressions means your ad is being seen by many people, which is good for brand awareness.
- Clicks: This is the number of times people clicked on your ad. A click means someone was interested enough in your ad to want to learn more by visiting your website.
- Click-Through Rate (CTR): This is the percentage of people who clicked your ad after seeing it (Clicks ÷ Impressions * 100%). A higher CTR suggests your ad is relevant and appealing to the audience it’s shown to.
- Conversions: This measures how many times people completed a desired action after clicking your ad (e.g., made a purchase, filled out a form, signed up for a newsletter). This is often the most important metric for campaigns focused on getting specific results.
- Cost Per Click (CPC): The average amount you pay each time someone clicks your ad.
- Cost Per Acquisition (CPA) or Cost Per Conversion: The average amount you pay to get one conversion (Total Spend ÷ Number of Conversions).
Regularly reviewing these metrics helps you understand what is working and what is not. If an ad has a low CTR, maybe the image or text needs improvement, or the targeting is off. If you are getting clicks but no conversions, perhaps the website landing page needs work.
Don’t just look at one metric. Look at them together. High impressions and low clicks might mean your ad isn’t compelling. High clicks but low conversions might mean your website isn’t doing a good job convincing visitors. Conversions are often the ultimate measure of a campaign’s business impact.
Common Challenges and Solutions
Even when you understand Display Ads Basics, you might face some challenges. Being aware of these can help you manage your campaigns better.
- Ad Blindness: People see so many ads online that they sometimes ignore them or fail to notice them.
- Solution: Use creative and eye-catching visuals. Make your message clear and relevant to the audience. Test different ad designs to see what gets noticed more.
- Competition: Many other businesses are also trying to show their ads to the same audience.
- Solution: Improve your targeting to reach more specific groups. Create better ads than your competitors. Make sure your website landing page is compelling.
- Getting Clicks but No Conversions: People click your ad and visit your website, but they don’t complete the action you want them to (buy, sign up, etc.).
- Solution: Check the page where people land after clicking your ad (the landing page). Is it relevant to the ad? Is it easy to use? Does it clearly explain what you want them to do? Improve your website experience.
- Wasting Budget on Irrelevant Clicks/Impressions: Your ads are being shown to or clicked by people who are not likely to become customers.
- Solution: Refine your targeting settings. Use negative targeting options if available (e.g., exclude certain types of websites or audiences).
Addressing these challenges involves testing and making adjustments based on the performance data you are monitoring. Display Ads Basics include learning that continuous improvement is necessary.
Best Practices for Beginners
To start your Display Ads Basics journey successfully, keep these simple best practices in mind:
- Start Simple: Don’t try to use every targeting option or ad format at once. Begin with basic image ads and one or two targeting methods.
- Have a Clear Call to Action: Every ad should clearly tell people what you want them to do next (e.g., “Shop Now,” “Learn More,” “Get a Quote”).
- Use High-Quality Visuals: Your images or videos are the first thing people see. They should look professional and clearly represent your brand or product.
- Make Ads Relevant: Ensure the ad’s message and visual match the audience you are targeting and the website they are on (if using placement or topic targeting).
- Test and Learn: Don’t expect your first ads to be perfect. Run different versions of your ads (A/B testing), try slightly different targeting, and see which ones perform better based on your goals.
- Monitor Performance Regularly: Check your campaign data often (daily or every few days when starting). This allows you to catch problems early and make necessary changes.
- Understand Landing Pages: The page on your website that someone arrives at after clicking your ad is very important. It should be directly related to the ad and make it easy for the person to take the next step.
Following these practices will help you get the most from your initial display advertising efforts and build your knowledge of Display Ads Basics.
Conclusion
Getting started with display advertising does not have to be overly complex. By focusing on the fundamental concepts covered in this guide, you can build a solid understanding of Display Ads Basics.
This includes knowing what display ads are, where they appear, the benefits they offer, how the underlying systems work, the types of ads you can create, and the basic steps to set up and monitor a campaign. While challenges exist, using smart targeting, creating compelling visuals, and regularly checking performance data allows beginners to run effective display ad campaigns. Display advertising is a powerful way to reach a broad yet targeted audience and keep your business visible online.
