Passed on 22 May, 2025

6. An introduction to display ads

You know those adverts you see all over the internet? Some are banners, while others are text-based or videos. This is called ‘display advertising’ and we’re going to explore what it is, how it works, and how it can help you attract more customers.

✅ Learning objectivesBy the end of this lesson, you’ll be able to:Understand the basics of display ads and how they compare to other formats.Explore display advertising delivery methods and targeting options.Explain the benefits of display advertising.

Learning objectives

By the end of this lesson, you’ll be able to:

Understand the basics of display ads and how they compare to other formats.

Explore display advertising delivery methods and targeting options.

Explain the benefits of display advertising.

What is display advertising?

What if you could reach your ideal customers not just when they're searching, but wherever they're browsing online? That's the power of display advertising. It goes beyond search engines to connect you with relevant audiences across millions of websites.

Billboards go digital

Think of display advertising as the digital equivalent of a billboard, print ad, or TV commercial. Instead of placing ads on physical billboards or TV channels, businesses pay or bid for ad space on websites, aiming to reach the right audience as they browse online.

SEM vs display advertising

One way to understand display advertising is to look at how it compares to search engine marketing (SEM). Let’s look at how both kinds of ads work, where they show up, and what they look like so you can know how to best use them.

Targeting

SEM targets users who are actively searching for something specific, like ‘office chairs’. Display ads target users who aren’t actively searching but may be interested based on the websites they visit, or their online behaviour.

Placement

SEM ads only appear on search engines when users are searching. Once they leave, SEM can’t reach them. Display ads, however, can appear on millions of websites, targeting users as they browse other sites beyond search engines.

Format

While SEM ads often prioritise text, some formats include visuals like images or Shopping ads. Display ads, on the other hand, are inherently visual and use creative formats like banners, videos, and animations to capture attention.

How display ads work

Display advertising helps businesses reach their target audience by showing ads to the right people on the right pages. Advertisers either pay a fixed rate for placements or bid in auctions to connect with potential customers at key moments.

Direct deals vs ad networks

Before your display ads can work their magic, you need to get them in front of your target audience. There are two main ways to deliver your display ads across the web:

Direct deals

With direct deals, you talk to the publisher of a relevant website to place your ads on their site.

Ad networks

Ad networks work differently – they connect you with lots of websites at once, so your ads can reach a wider audience across many sites.

Targeting: Finding your audience

Let’s imagine you’re passionate about fitness, so you’ve started an online coaching business offering personalised workout plans. Now, you want to promote it. You can choose to show ads on fitness-related websites or target specific audiences – or both.

Target specific websites

Think about the people who might want a fitness coach and what else they might look at online, like workout blogs or nutrition advice websites. With the shift away from third-party cookies, contextual targeting or first-party data can help you focus on the right pages to reach your audience.

Target specific groups

Your potential clients won’t always be on fitness-related websites. Display ads let you target people based on their interests, like health and wellness, no matter where they are online. These ads can show up on news, entertainment, or even shopping sites.

Check your knowledge

It's time for you to check and reflect on what you've learned so far.

Question 1 of 1

Avery has been running a fitness coaching business for the past two years. They’d like to start advertising their site to get more customers. To do that they want to contact some website publishers. Who do you think Avery should contact?

A retailer of fitness equipment

Other fitness coaches in the same field

A healthcare provider

An ad network

Show Answer

Show Answer

Almost.A fitness equipment retailer could be a great fit, or Avery could use an ad network to find suitable ad spaces if they’re unsure where to post. Competitors won’t offer direct deals for display ads, and healthcare providers may only be somewhat relevant.

Benefits of display advertising

Display advertising lets you be right where your customers are, and supports many different marketing goals.

Unlocking the power of display ads

Whether you’re looking to boost awareness, drive traffic, or re-engage past visitors, display ads provide creative options to support your goals at every stage of the sales funnel.

AwarenessDisplay ads help get your product noticed by the right people. It’s a great way to build awareness of your business, making sure your target audience knows it exists.

Display ads help get your product noticed by the right people. It’s a great way to build awareness of your business, making sure your target audience knows it exists.

Driving trafficDisplay ads drive traffic by reaching relevant audiences and encouraging them to click through to your website.

Display ads drive traffic by reaching relevant audiences and encouraging them to click through to your website.

EngagementDisplay ads boost engagement by encouraging users to interact with your brand through eye-catching formats like images or videos.

Display ads boost engagement by encouraging users to interact with your brand through eye-catching formats like images or videos.

RetargetingDisplay advertising can target people who have visited your site but have not made a purchase, incentivising their business with a customised incentive or promotion.

Display advertising can target people who have visited your site but have not made a purchase, incentivising their business with a customised incentive or promotion.

✅ ActivityDisplay ads are everywhere online, but have you ever stopped to think about how they work? Visit a few popular websites to spot examples of display ads, then answer the questions below to start analysing their strategy.Check the items off as you go.Visit a few popular websites and try to find examples of display ads.What types of ads do you see, and which brands are behind them?Who do you think these ads are trying to reach?What other types of websites might be good for targeting people with similar interests?

Activity

Display ads are everywhere online, but have you ever stopped to think about how they work? Visit a few popular websites to spot examples of display ads, then answer the questions below to start analysing their strategy.

Visit a few popular websites and try to find examples of display ads.

What types of ads do you see, and which brands are behind them?

Who do you think these ads are trying to reach?

What other types of websites might be good for targeting people with similar interests?

Download PDF

Download PDF

Lesson complete

Great job!Now that you understand display advertising, the next step is learning to implement display ads effectively. Get ready to start creating and managing your own campaigns in the next lesson.

Now that you understand display advertising, the next step is learning to implement display ads effectively. Get ready to start creating and managing your own campaigns in the next lesson.