Key Takeaways

• Display ads are visual advertisements (images, videos, interactive elements) shown on digital properties

• Common formats include banner ads, native ads, interstitial ads, and rich media

• Publishers typically earn through CPM (cost per thousand impressions) model, averaging $0.50-$5 per 1,000 views

• Average click-through rates for display ads range from 0.5-1%, significantly lower than search ads

• Effective display ad implementation balances user experience with monetization potential

What Are Display Ads, Exactly?

Display advertising is bascially everywhere you look online. Those rectangular images on news sites, the product banners that follow you around the web, and those "sponsored content" blocks on your favorite blog? All display ads.

At their core, display ads are visual advertisements shown on websites, mobile apps, and other digital platforms. Unlike text-based search ads that appear when users actively look for something, display ads show up while users browse content, making them more of a "push" than a "pull" marketing tactic.

Common Types of Display Ads

Display ads come in several flavors, each with their own strengths:

Banner Ads

The OG of digital advertising. These rectangular or square ads appear at the top, bottom, or sides of webpages. They've been around since the 90s but still form the backbone of many publisher monetization strategies.

Banner ads come in standardized sizes established by the IAB, with the most common being:

• 300x250 (Medium Rectangle)

• 728x90 (Leaderboard)

• 160x600 (Skyscraper)

• 320x50 (Mobile Banner)

Native Ads

These clever ads blend in with the surrounding content, matching the look and feel of the platform they're on. Think "Sponsored" posts in your social media feed or "Recommended content" widgets at the bottom of articles. According to Setupad, native ads generate 53% more views than traditional display ads.

Rich Media Ads

These interactive ads go beyond static images to include videos, expandable elements, games, or other interactive features. They tend to be more engaging but also more resource-intensive.

Interstitial Ads

Full-screen ads that appear during natural breaks in an app or between page loads. They're attention-grabbing but need to be used carefully to avoid irritating users.

How Publishers Make Money with Display Ads

Publishers (website and app owners) can monetize their digital real estate through several pricing models:

CPM (Cost Per Mille)

The most common model for publishers, where advertisers pay for every 1,000 impressions their ad receives. Rates vary widely depending on factors like:

• Audience demographics

• Geographic location

• Content niche

• Ad viewability

• Device type

For most publishers, CPM rates fall somewhere between $0.50 and $5, though premium publishers in valuable niches can command much higher rates.

CPC (Cost Per Click)

Publishers earn money when users click on displayed ads. This model shifts some risk from advertisers to publishers, as impressions without clicks don't generate revenue.

CPA (Cost Per Action)

Publishers only get paid when users complete specific actions after clicking an ad (signing up, making a purchase, etc.). This is the most advertiser-friendly and publisher-risky pricing model.

Display Ads vs. Search Ads: The Big Difference

If you're new to digital advertising, it's important to understand how display differs from search:

The Reality of Display Ad Performance

Let's get real: display ads typically have lower click-through rates than search ads. The current industry average sits around 0.5-1% according to Ignite Visibility. This means for every 1,000 times your ad shows, only 5-10 people click on it.

Why so low? Because people browsing content aren't necessarily in "shopping mode" - they're consuming content, not actively looking to buy something.

That said, display ads still provide value through:

• Brand awareness

• Retargeting opportunities

• Reaching users earlier in the buying cycle

• Complementing other marketing channels

Best Practices for Publishers

If you're a publisher looking to monetize with display ads:

1. Don't overdo it - Too many ads create a poor user experience and can actually reduce overall revenue

2. Test different placements - Above-the-fold ads typically perform better, but in-content ads often have higher engagement

3. Consider viewability - Ads that aren't seen don't earn money (and increasingly, advertisers only pay for viewable impressions)

4. Optimize for mobile - Most web traffic is mobile, so ensure your ad layouts work well on smaller screens

5. Try native formats - They typically have higher engagement and don't trigger "banner blindness"

Common Display Ad Networks for Beginners

If you're just getting started, these platforms make implementation relatively easy:

• Google AdSense - The most accessible entry point for beginners

• Media.net - An alternative that specializes in contextual ads

• Amazon Publisher Services - Particularly strong for content related to products

As your traffic grows, you might consider more advanced solutions like header bidding or working with a dedicated ad ops team.

The Bottom Line

Display advertising remains one of the most accessible monetization methods for digital publishers of all sizes. While it won't make you rich overnight (especially with modest traffic), it provides a relatively passive income stream that can grow alongside your audience.

For beginners, the key is starting simple with a platform like AdSense, focusing first on creating great content that attracts visitors, then optimizing your ad implementation once you have traffic to work with.