What Are Display Ads? Google Display Advertising Explained

You've almost certainly seen display ads today, probably without realising. They're the image and banner adverts that appear on news sites, blogs, apps and YouTube. And if you've ever browsed a product online and then seen it follow you around the internet, that was a display ad too.

In this guide I'll explain what display advertising is, how the Google Display Network works, the different ad formats, how much display ads cost, and, most importantly, when display advertising is worth it for your business and when it isn't. If you'd like help deciding, our Google Ads management team can advise.

What Is a Display Advertisement?

A display advertisement is a visual online advert, usually made up of images, graphics, text or video, shown on websites, apps and other digital platforms. Unlike search ads, which appear when someone searches, display ads appear while people are browsing, reading or watching content.

Display media is a broader term for these visual ad placements across the internet.

The key difference: search ads reach people actively looking for something. Display ads reach people while they're doing something else.

How Does Google Display Advertising Work?

Google's Display Network includes millions of websites, apps and Google-owned properties such as YouTube and Gmail. Website owners make space for ads, and Google fills that space with relevant adverts.

When you run a display campaign, you tell Google who you want to reach, and Google shows your ads on relevant sites and apps. You can target people based on:

• Audiences: their interests, habits and what they're actively researching
• Demographics: such as age and location
• Content: websites, topics or placements related to your business
• Remarketing: people who've already visited your website or used your app

Types of Display Ads

Responsive display ads

You upload images, logos, headlines and descriptions, and Google automatically combines them into ads that fit different spaces. They're the most common format and adapt to almost any placement.

Uploaded image ads

Pre-designed banner ads in specific sizes, giving you full control over how they look.

Gmail ads

Ads that appear in the Promotions and Social tabs of Gmail inboxes.

Video ads

Video content shown on YouTube and across partner sites.

What Is Remarketing?

Remarketing (also called retargeting) shows ads to people who've already visited your website. It's one of the most effective uses of display advertising.

Most visitors don't buy or enquire on their first visit. Remarketing keeps your business in front of them as they browse elsewhere, reminding them to come back. It works particularly well for:

• Online shops recovering abandoned baskets
• High-value services where people take time to decide
• Businesses with longer sales cycles

How Much Does Display Advertising Cost?

Display ads are usually cheaper per click than search ads, because you're reaching people who aren't actively searching. Many display clicks cost well under £1, although costs vary with targeting and competition.

Display campaigns can be charged per click or per thousand impressions, depending on your bidding strategy. As with all Google Ads, you set your own budget. See our Google Ads cost guide for more.

Display ads typically have much lower click-through rates than search ads, often well below 1%, because people aren't looking for your product when they see them. That's normal, and it's why display is judged differently from search.

Is Display Advertising Effective?

Display advertising is effective for some goals and much less effective for others.

Where display works well

• Brand awareness: getting your name in front of a large, relevant audience cheaply
• Remarketing: bringing back people who already know you
• Visual products: where an image sells the product
• Launching something new: building familiarity before people search

Where display is less effective

• Generating immediate leads for local service businesses
• Small budgets, where search ads usually give a better return
• Businesses without conversion tracking, where results are hard to measure

For most small service businesses, I'd recommend starting with search ads, which reach people actively looking for your services, and adding remarketing once you have steady website traffic. Broad display campaigns aimed at cold audiences are usually better suited to businesses with larger budgets and a strong brand focus.

Why Use Display Advertising?

• Huge reach across websites, apps, YouTube and Gmail
• Visual impact, showing your products or brand
• Low cost per impression, making awareness affordable
• Powerful remarketing to recover lost visitors
• Flexible targeting by audience, interest, placement and location

Display Ads Best Practices

• Use clear, high-quality images that stand out
• Keep text short and the message simple
• Include your logo and a clear call to action
• Exclude poor-quality placements, such as mobile games and irrelevant apps, where accidental clicks are common
• Use frequency caps, so you don't show the same person your ad too many times
• Send clicks to a relevant landing page, not your homepage
• Track conversions, including view-through conversions, to understand the real impact

Display Ads vs Search Ads

Many successful accounts use both: search ads to capture demand, and display remarketing to follow up. Read our guide to how Google Ads works for more on campaign types.

Common Display Advertising Mistakes

• Running display ads inside a Search campaign by accident
• Targeting audiences that are far too broad
• Letting ads show in low-quality apps and games
• Judging display campaigns only on clicks
• Using weak, text-heavy images
• Running display without remarketing lists or conversion tracking

How to Measure Display Advertising

Because display ads reach people who aren't actively searching, they need to be measured differently from search ads. Clicks alone rarely tell the full story. Look at:

• Conversions, including those that happen after someone clicks
• View-through conversions: people who saw your ad, didn't click, but later visited and converted
• Cost per acquisition compared with your other campaigns
• Remarketing performance, which often delivers the strongest return
• Brand search growth: more people searching for your business name can signal that awareness campaigns are working

Give campaigns enough time to gather meaningful data before making judgements, as display results often build gradually. Set clear goals before launching. If your aim is awareness, judge the campaign on reach and brand searches. If your aim is sales or enquiries, judge it on conversions and cost per acquisition.

Getting Started With Display Advertising

If you're new to display, start small and focused. Set up a remarketing audience first, as it's usually the most profitable place to begin. Create a simple set of responsive display ads using your best images and clearest message, and exclude low-quality placements from the start. Once you understand what works, you can test wider audiences.

Final Thoughts

Display ads are a powerful tool, but they're not the right starting point for every business. Used for awareness and especially remarketing, they can keep your business front of mind and bring back visitors who didn't convert the first time.

Not sure whether display advertising fits your goals? Get a free audit and we'll recommend the right mix of Google Ads for your business.