Google Display Ads 101: Everything You Should Know About Google Display Ads

Display ads are a key digital advertising tool, offering businesses a visually engaging way to reach new audiences, build brand awareness, and re-engage potential customers. Whether you’re new to digital advertising or looking to refine your current campaigns, in this guide Pacific Cascade will walk you through everything you need to know—from basic concepts to advanced strategies.

1. What Are Display Ads?

Display ads are image- or video-based advertisements that appear on websites, apps, and videos within the Google Display Network (GDN), which spans over 35 million websites and apps. These ads are designed to capture attention with visuals and encourage users to take action, whether it’s clicking through to your website, learning more about your brand, or completing a purchase.

Unlike text-based search ads that appear on search engine results pages (SERPs), display ads are placed on content pages where your audience is likely to browse. For example, if you’re marketing a travel agency, your ads might appear on travel blogs, airline booking sites, or apps related to tourism.

Display ads are typically used for:

Brand Awareness: Introducing your business to a broader audience.
Retargeting: Re-engaging users who have interacted with your site but haven’t converted.
Promotions: Highlighting specific offers or events.

They are visually versatile, supporting static images, animated graphics, and even interactive videos, making them a dynamic choice for businesses looking to create memorable impressions.

2. How Display Ads Differ From Other Campaigns

To fully understand display ads, it’s essential to see how they compare to other Google Ads campaign types:

Search Ads: These ads are triggered by specific user queries on Google. For example, if someone searches for “best laptops under $1000,” search ads for relevant products will appear at the top of the results page. Search ads are highly intent-driven and focus on users ready to act.
Shopping Ads: Ideal for e-commerce, these ads showcase product images, prices, and descriptions directly in search results. They are highly effective for product-based businesses looking to drive immediate purchases.
Video Ads: These ads are designed for platforms like YouTube and can appear before, during, or after video content. They’re great for storytelling and creating emotional connections with viewers.
Display Ads: In contrast, display ads target users who are browsing websites, reading articles, or watching videos but may not have immediate purchase intent. These ads are more about sparking interest or reminding users about your brand, products, or services.

For businesses focused on long-term brand growth and customer retention, display ads complement other campaigns by keeping your brand visible across a range of digital touchpoints.

3. What Is a Campaign?

In Google Ads, a campaign is the foundation of your advertising strategy. Think of it as a container that organizes all the settings, targeting criteria, budget, and ads for a specific goal. When creating a display ad campaign, you’ll need to define key parameters:

Objective: Choose a goal like brand awareness, website traffic, or conversions. For example, a furniture store might set up a display campaign to promote its Black Friday sales.
Budget: Decide how much you’re willing to spend daily or over the campaign’s duration. Display campaigns typically have a lower cost-per-click (CPC) than search campaigns, making them cost-effective for awareness-building.
Targeting: Use Google’s powerful audience tools to define who sees your ads. Options include:
- Demographics: Age, gender, income.
- Affinity Audiences: Interests like fitness, travel, or technology.
- Custom Audiences: Users who’ve visited specific websites or searched certain keywords.

Organizing your campaign effectively ensures your ads reach the right people at the right time.

4. Best Practices for Display Ads

Success in display advertising relies on creating ads that capture attention and encourage action. Here are some best practices:

a. Design with Clarity

Display ads only have seconds to catch a users attention. Use high-quality visuals, simple designs, and minimal text. A cluttered ad can confuse viewers, while a clean design with a strong focal point draws them in.

b. Create a Clear Call-to-Action (CTA)

Your ad should guide users on what to do next. CTAs like “Shop Now,” “Learn More,” or “Sign Up Today” provide a clear path for viewers to follow. Place the CTA prominently and make it visually distinct.

c. Optimize for Mobile

More than half of internet traffic comes from mobile devices, so your ads must look great on smaller screens. Use responsive designs that adjust to different devices without losing impact.

d. Test and Iterate

Run A/B tests to compare different headlines, images, and CTAs. For example, try testing an ad with a humorous tone versus one with a more professional tone to see which resonates better with your audience.

e. Leverage Audience Targeting

Google’s targeting tools let you reach users based on their behavior, interests, and online activity. For instance, if you’re selling hiking gear, you can target outdoor enthusiasts or people researching national parks.

5. How to Set Up a Display Ad

Creating a display ad campaign is straightforward with Google Ads. Follow these steps:

Log In to your Google Ads account and click on “Create Campaign.”
Choose Your Objective: Select a goal like brand awareness or conversions.
Select Campaign Type: Choose “Display” from the list of campaign types.
Define Targeting Criteria: Set audience parameters like location, interests, and demographics.
Set Budget and Bidding: Determine your daily spend and bidding strategy (e.g., maximize clicks or conversions).
Create Your Ad: Upload visuals and write headlines and descriptions. If you’re unsure, use responsive display ads to let Google optimize your creatives.
Launch and Monitor: Review the campaign setup, launch it, and monitor performance regularly to make adjustments.

6. Benefits of Display Ads

Display ads provide several key advantages for businesses:

Broad Reach: With access to millions of websites, you can reach audiences in virtually any niche.
Cost-Effective: Display ads often cost less per click than search ads, making them ideal for businesses with tighter budgets.
Brand Awareness: Even if users don’t click, your ads increase brand visibility, keeping your business top-of-mind.
Dynamic Formats: From static images to interactive videos, display ads offer creative freedom to convey your message effectively.

7. When to Use a Display Ad and When Not to Use One

When to Use Display Ads

Display ads are highly effective for specific goals and scenarios, including:

Building Brand Awareness: They’re ideal for introducing your business to a broader audience. For example, a startup tech company might run display ads to showcase its innovative product to potential customers.
Retargeting: If someone visited your website but didn’t make a purchase, display ads can help re-engage them. Retargeting campaigns often show personalized ads reminding users of products they viewed or abandoned in their cart.
Driving Website Traffic: If you want to attract users to your blog, landing page, or e-commerce store, display ads can guide them there.

When Not to Use Display Ads

Display ads are not as effective in scenarios requiring immediate intent-driven conversions, such as:

Search Query Match: If you need to capture users actively searching for specific terms (e.g., “buy electric scooters”), search ads are more suitable.
Tight Budgets for Direct Sales: Display ads may not convert as quickly as search ads. If your goal is immediate sales with limited funds, focus on search or shopping campaigns instead.

Understanding when to deploy display ads ensures you’re aligning your strategy with your advertising goals.

8. Will Display Ads Deliver the Best ROI?

The return on investment (ROI) for display ads depends on your objectives, industry, and execution. While they may not always deliver the highest direct conversion rates compared to search ads, they excel in:

Long-Term Brand Building: Display ads create touchpoints that help users remember your brand, leading to future conversions.
Lower CPC: Their cost-per-click is often lower than search ads, making them cost-effective for broader reach.
Complementing Other Campaigns: Paired with search or shopping ads, display ads reinforce your presence throughout the buyer’s journey.

Display ads might not yield immediate results, but when used strategically, they can provide excellent ROI over time by enhancing brand recall and engagement.

9. Responsive Display Ads

What Are Responsive Display Ads?

Responsive display ads are Google’s solution to streamline the creative process. Instead of designing multiple ad variations, you upload several assets (headlines, images, videos, and descriptions), and Google automatically generates optimized ads to fit different placements and screen sizes.

For example, a fitness studio might upload a high-resolution image of its gym, a few headlines like “Get Fit Today” and “Join Now,” and a call-to-action such as “Sign Up.” Google will mix and match these assets to create ads tailored to users across the Display Network.

Why Use Responsive Display Ads?

Efficiency: You save time by uploading assets once rather than designing individual ads for different formats.
Performance Optimization: Google’s AI tests various combinations to find the best-performing versions.
Versatility: Your ads automatically adjust to fit different devices, platforms, and placements.

10. What’s New with Google AI and Display Ads?

Google’s advancements in AI have significantly enhanced the performance of display ads by enabling:

Automated Targeting: AI identifies high-performing audience segments beyond your initial settings, expanding your reach.
Smart Bidding: Google AI adjusts your bids in real-time based on user intent, device, and behavior to maximize results.
Enhanced Creative Optimization: With responsive display ads, Google AI continuously tests and optimizes your ad combinations to improve click-through rates (CTR) and engagement.

11. How Can Google AI Help My Display Ads?

Google AI transforms the effectiveness of your campaigns by:

Improving Targeting Accuracy: It uses machine learning to analyze user behavior and deliver ads to the most relevant audiences. For instance, a user who recently searched for “budget smartphones” might see your ad for a new phone launch, even if they’re browsing unrelated content.
Optimizing in Real Time: Google AI adjusts bids dynamically to ensure your ads appear at the right moment to the right person.
Saving Time: By automating creative testing and audience discovery, you can focus on strategy while AI handles the execution.

12. Other Display Ad Types

Apart from responsive ads, you can experiment with various display ad types:

Static Image Ads: Simple ads with a single image and text, great for clear and direct messaging.
Animated Ads: These ads use motion to grab attention, ideal for showcasing multiple products or features.
Video Ads: Highly engaging and perfect for storytelling, these ads can appear within YouTube videos or across the Display Network.
HTML5 Ads: Interactive ads that allow users to engage with your content directly, such as clicking through a product catalog.

Each type serves unique purposes, so choose based on your campaign goals and audience preferences.

13. When Display Ads Show

Display ads appear across the Google Display Network based on your targeting settings. They can show:

On Websites: Ads are placed on relevant sites aligned with your audience’s interests or behaviors.
Within Apps: Reach users while they’re engaging with mobile apps, such as gaming or lifestyle apps.
On YouTube: Although primarily for video ads, display ads can appear as banner overlays on YouTube videos.

Google ensures your ads appear where your audience is most likely to engage, maximizing your reach.

14. How Performance Data Works

Google Ads provides detailed metrics to measure your display campaign’s success, including:

Impressions: The number of times your ad was displayed to users.
Clicks: How many people interacted with your ad by clicking on it.
CTR (Click-Through Rate): The percentage of impressions that resulted in clicks, a key indicator of ad effectiveness.
Conversions: The number of desired actions (e.g., purchases, sign-ups) completed after interacting with your ad.
Cost Per Conversion: The total cost divided by the number of conversions, showing how cost-efficient your campaign is.

Regularly analyzing these metrics helps you refine your ads for better performance.

15. The Future of Display Ads with Google AI

Google AI continues to evolve, with features like Performance Max campaigns offering fully automated ad management across Google’s platforms. This includes:

Improved Creative Suggestions: Google’s AI recommends headlines and visuals to enhance ad performance.
Cross-Platform Synergy: Seamlessly integrate display ads with YouTube, search, and shopping campaigns for a unified strategy.

Embracing these innovations ensures your campaigns stay competitive and effective.

Final Thoughts

Display ads are a powerful tool for reaching your audience and building lasting brand visibility. By understanding their unique strengths, leveraging Google AI, and following best practices, you can create impactful campaigns that deliver tangible results. Remember, the key to success lies in continual learning, testing, and optimization.

If you’re ready to elevate your advertising game, start experimenting with display ads today. Let your visuals speak louder than words!