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What is Display Advertising?

Display advertising delivers image/video ads across websites and apps. Learn how it works and how to make it perform.
Brief Definition

Display advertising shows image and video ads across websites and apps outside of social walled gardens. It’s commonly bought programmatically via DSPs.

Understanding Display Advertising

Display advertising excels at reach and retargeting across the open web. Catalog ads and dynamic templates make display more relevant by matching products to user intent at scale. Viewability, frequency, and brand safety settings shape how effective impressions are. Creative must be legible in many sizes and contexts, so safe zones and concise overlays matter. Align landing experiences to creative so clicks convert.

Because display spans many sites and apps, quality varies. Curated marketplaces and allow/block lists improve safety and performance. Frequency controls reduce fatigue that can damage brand perception. Measurement should include post‑click quality, not just surface‑level metrics. With the right feed and creative, display can support the full funnel alongside social.

Why Display Advertising matters

Display advertising matters because it extends reach beyond walled gardens while staying measurable. It covers the full funnel—from prospecting to retargeting—when creative and frequency are tuned. Flexible formats let you pair product feeds with static, video, and rich media for clarity and impact.

  • Scale: Access inventory you can’t reach on social alone.
  • Coverage: Full-funnel support—prospecting and retargeting.
  • Creative: Flexible formats from static to video and rich media.

How Display Advertising works

Display advertising works by auctioning impressions via ad exchanges, where DSPs bid using your targeting and creative. The winning bid serves the ad and records delivery and context. Viewability thresholds, frequency caps, and brand safety controls shape which impressions you buy. Product feeds enable dynamic creative so ads remain relevant without manual swaps. Post‑click quality metrics validate that the traffic is worth buying. Reporting by placement, site, and audience reveals where to scale.

Key Takeaways

  • Display advertising shows banner or video ads across websites, apps, and ad networks.
  • Use display for awareness, retargeting, and catalog campaigns with product-level personalization.
  • Provide multiple aspect ratios (1:1, 16:9, etc.) to maximize placement coverage.
  • Track performance by placement, creative, and audience to optimize display spend.
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FAQs
Is display advertising only for retargeting?
No—display advertising works for both retargeting and prospecting when paired with strong creative, broad targeting, and product-level personalization.
How do I measure display advertising success?
Measure display advertising using CPA/POAS for performance, viewability and completion rate for ad quality, and post-click behavior for funnel health.
What aspect ratios do I need for display advertising?
Display advertising typically requires multiple aspect ratios (1:1, 16:9, 300x250, 728x90) to maximize placement coverage across sites and apps.
Is display advertising cheaper than social?
Display advertising CPMs are often lower than social, but test conversion quality and incrementality to ensure efficiency beyond just impression cost.
How do catalog ads work in display advertising?
Catalog ads in display advertising dynamically render product-specific creatives from your feed, enabling personalized retargeting and prospecting at scale.

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