Every time you see a product image beside a news article, a banner in a mobile app or a sponsored card in Gmail, you are looking at display advertising. It is one of the oldest forms of online advertising, and still one of the cheapest ways to put your brand in front of a lot of people.
It is also one of the easiest places to waste money. Display ads reach people who are not searching for you, so poor targeting or weak creative can burn through a budget with little to show for it.
This beginner’s guide explains how display advertising works, the main formats, how to buy and target it, which metrics to judge it on, and the big 2026 change on Google: Display campaigns moving into Demand Gen.
Key Takeaways
- Display ads are visual ads (image, video, native) shown on websites, apps and platforms, not on search results pages.
- They are best for awareness, remarketing and reaching people before they search – not for capturing ready-to-buy demand.
- On Google, Display buying is moving into Demand Gen; the migration tool began rolling out in June 2026.
- Targeting and placement exclusions matter as much as creative.
- Judge display on conversions, assisted conversions and reach, not on click-through rate alone.
What is display advertising?
Display advertising is paid visual advertising placed on third-party websites, apps and platforms. Instead of matching a keyword someone typed, display ads are matched to people (audiences), content (topics, keywords on the page) or placements (specific sites or apps).
That is the key difference from search advertising. In paid search, the user raises their hand first. In display, you interrupt – so the ad has to earn attention.
Display vs search vs social
| Search ads | Display ads | Paid social | |
|---|---|---|---|
| Trigger | A search query | Audience, content or placement | Audience on one platform |
| User mindset | Actively looking | Reading or browsing | Scrolling a feed |
| Main strength | High intent, direct conversions | Cheap reach, remarketing | Detailed audiences, native formats |
| Typical pricing | Cost per click | CPM or CPC | CPM or CPC |
| Common weakness | Limited by search volume | Low-quality placements, banner blindness | Creative fatigue |
Types of display ads
- Static banner (image) ads – fixed-size images such as 300×250 or 728×90. See our full guide to banner ad sizes.
- Responsive display ads – you upload images, headlines, logos and descriptions; Google assembles ads to fit each space.
- HTML5 / rich media – animated or interactive ads built in code.
- Native ads – ads styled to match the surrounding content, such as “recommended” cards.
- Video display – short video in display slots or on YouTube.
- Carousel and product feed ads – several cards or products in one unit, often pulled from Google Merchant Center.
How display advertising is bought
There are three main routes. Most small and mid-sized advertisers start with an ad network such as Google; larger brands add programmatic advertising through a demand-side platform.
| Route | How it works | Who it suits |
|---|---|---|
| Ad network (e.g. Google Display Network) | Self-serve campaigns across a network of partner sites and apps | Most businesses; low minimum spend |
| Programmatic (DSP) | Software buys impressions across many exchanges in real time or via private deals | Larger budgets, agencies, specific publishers |
| Direct with a publisher | Negotiate placements, dates and price with a site | Niche trade publications, sponsorships |
The 2026 change: Google Display moves into Demand Gen
Google’s help centre says Display Ads campaigns are being folded into the Google Display Network inside Demand Gen. Reach stays the same – Google cites more than 2 million sites and apps – but the campaign workflow changes. A phased rollout of a migration tool began in June 2026; Google says that later, new Display campaigns can only be created within Demand Gen, and remaining eligible campaigns will be migrated automatically.
“Campaigns that are migrated to Demand Gen can't be reverted back to Google Display Ads campaigns.”
— Google Ads Help, Google Display Ads campaigns have a new home in Demand Gen
Practical points from Google’s migration notes:
- Migrated campaigns carry over up to 42 days of performance history, so the learning period should be short.
- Manual CPC, viewable impression bidding, bid adjustments and portfolio bidding are not supported – you will move to automated strategies such as Target CPA or Maximise Clicks.
- Responsive display ads, static image ads, product feeds and carousels carry over; Google says HTML5 and third-party ads are coming in late 2026.
- Placement exclusions still work, and placement reporting is in the “Where ads showed” report.
Our Demand Gen campaigns guide covers setup in detail.
Display targeting options
- Remarketing – show ads to past visitors or customers; usually the best-performing display tactic. See remarketing campaigns and retargeting vs remarketing.
- Lookalike and custom segments – reach people similar to your customers or defined by what they search and browse.
- In-market and affinity audiences – Google’s pre-built purchase-intent and interest groups.
- Contextual targeting – match pages about relevant topics or keywords.
- Placement exclusions – block apps, sites and content categories that do not fit your brand.
How to launch your first display campaign (step by step)
- Set one goal. Remarketing sales, new-customer leads or awareness – not all three in one campaign.
- Confirm tracking. Set up Google Ads conversion tracking before spending.
- Start with remarketing. It has the warmest audience and gives you quick feedback on creative.
- Prepare creative in every ratio. Landscape (1.91:1), square (1:1) and portrait (4:5) images plus a square logo, following Google’s image specs.
- Write a clear offer. One message, one benefit, one call to action.
- Add exclusions. Exclude content categories and placements that do not suit you, and exclude converters from prospecting.
- Set frequency sensibly. Watch frequency in reports so the same people are not hit dozens of times.
- Send traffic to a matching page. A focused PPC landing page beats your homepage.
- Review placements weekly. Exclude placements that spend without converting.
Metrics that matter for display
Display clicks are cheap but often low-intent, so treat click-through rate as a creative health check rather than the goal. Focus on:
- Conversions and cost per acquisition
- View-through and assisted conversions
- Reach and frequency
- Branded search lift after campaigns run
- Engagement on the landing page (GA4 engaged sessions)
Common mistakes
- Running display inside a Search campaign by accident. Check network settings so search budgets are not diluted.
- No placement review. Some apps and sites generate accidental clicks; exclude them.
- Prospecting before remarketing. Cold audiences need more budget and better creative; start warm.
- Judging only on last-click conversions. Display often assists rather than closes.
- One tired banner for months. Refresh creative regularly to fight fatigue.
- Ignoring the Demand Gen migration. Plan the move now rather than waiting for automatic migration.
Related Guides
Frequently Asked Questions
What is display advertising?
Display advertising is paid visual advertising – images, banners, video and native ads – shown on websites, apps and platforms such as YouTube and Gmail, rather than as text results on a search page.
Are display ads worth it for small businesses?
Usually as a second step. Most small businesses get faster returns from Search ads first, then add display for remarketing and awareness once conversion tracking is reliable.
How are display ads paid for?
Mostly by cost per thousand impressions (CPM) or cost per click (CPC). On Google, automated bidding can also optimise for conversions or conversion value.
What is happening to Google Display campaigns?
Google is moving Display campaigns into Demand Gen. A migration tool started rolling out in June 2026 and Google says remaining eligible campaigns will be migrated automatically later.
What is a good click-through rate for display ads?
Display CTRs are normally much lower than search CTRs because people are not actively searching. Compare against your own past campaigns and judge display mainly on conversions, assisted conversions and reach.
Conclusion
Display advertising is a reach and remarketing tool. Used with clear goals, good exclusions and strong creative, it supports search and social by keeping your brand in front of the right people – and in 2026, on Google, that work happens inside Demand Gen. If you want a team to plan and manage your display and search campaigns together, explore our PPC management services or get a free quote.
References
- Google Display Ads campaigns have a new home in Demand Gen – Google Ads Help
- About Demand Gen campaigns – Google Ads Help
- Image asset specifications for Demand Gen campaigns – Google Ads Help
- IAB New Ad Portfolio: Fixed Size Ad Specifications – IAB Tech Lab
- Ways of transacting in Ad Manager – Google Ad Manager Help
- What Are Display Ads & How Do They Work? – Semrush Blog
