Defining Display Advertising as Digital Media Flourishes

What marketing tactic can reach the same targeted audience repeatedly on their social media accounts, as they browse the web, and even when they’re watching a smart TV?

The answer is display advertising. From single-image banner ads to dynamic multimedia ads and beyond, these advertisements have become an indispensable tool in any marketer’s utility belt. 

Businesses are projected to spend over $67 billion on banner advertisements alone in 2024, with over $70 billion projected for 2025. This investment speaks to the value of display advertising, and also presents a challenge for marketers to make the most of these resources and prove a return on investment.

Understanding the fundamentals of display advertising, how it has evolved and how it’s integrating with emerging technologies is essential for marketers seeking to leverage its full potential.  Whether you're a seasoned marketer looking to refine your display ad strategies or just starting out, here’s what you need to know.

A Quick Display Advertising Definition

Display advertising is a shortened form of ‘digital display advertising,’ referring to third-party advertisements that appear in digital spaces such as social media platforms and websites. These ads can contain images, video, text or any combination of the three. They are generally personalized based on the viewer’s trackable online behavior data.

How Display Advertising Is Evolving

Display advertising was one of the first forms of digital marketing. Back in the 1990s, it took the form of static banner ads. These crude-but-effective digital billboards gave advertisers an easy way to reach people online. 

As the internet grew throughout the 2000s, display advertising got more sophisticated. Rich media ads brought animation, video and interactivity to the mix. Behind the scenes, targeting options were also getting more robust.

Programmatic advertising – the automatic buying and selling of digital ad space – also got its start in the 2000s. This approach makes display advertising even more efficient and precise for marketers. 

Now, the proliferation of smartphones, smart TVs and connected appliances are putting display ads in every room in the house, and on the go as well. 

Essential Types of Display Ads

As you’ve seen, display advertising is an umbrella term that covers a wide variety of ad formats. Each of these formats has its own unique characteristics, and each can play a role in crafting effective campaigns. 

These different types include:

• Banner Ads: These are the classic display ads that appear at the top, bottom or sides of web pages. Banner ads feature static images or simple animations. They’re most commonly used for brand awareness or driving traffic to a website. LinkedIn Single Image Ads are a good example.
• Video Ads: These ads use any form of video – live action, animated, slideshow – to help capture attention. Video Ads allow advertisers to tell a story, showcase products and engage users with dynamic visuals and sound.
• Native Ads: While banner ads are designed to stand out, native ads are designed to blend in. They match the look and feel of the site or platform they appear on, though they are still clearly labeled as advertisements. The goal is to provide a seamless user experience. LinkedIn Sponsored Content is a good example of native advertising.
• Rich Media Ads: These ads can include elements like games or polls that entice users to engage directly with the ads. Rich media ads are highly effective at capturing attention and driving user engagement.
• Interstitial Ads: Interstitial ads are full-screen ads that appear between content pages or during transitions within an app or website. These ads typically cover the entire screen, providing ample space for advertisers to deliver their message and engage users. Interstitial ads are commonly used in mobile apps and games to monetize user interactions.
• Dynamic Ads: These ads are automatically personalized for each user. LinkedIn Dynamic Ads can include the browser’s LinkedIn photo to earn extra attention.
• Retargeting Ads: These ads use cookies or other tracking methods to appear to the same user on multiple sites across the web. Retargeting ads can be highly effective at prompting action or just raising awareness. 
  

Each of these ad types has strengths and weaknesses depending on your specific objectives. Check out our guide to Objective-Based Advertising to help you match formats to your goals.

Display Advertising Best Practices

Of course, it takes more than choosing the right format for a successful display ad campaign. Follow these best practices to make sure your ads hit the right people at the right time with the right message.

Targeting and personalization

Target specific audience segments based on their demographics, interests, behavior and previous brand interactions. On LinkedIn, you can also target based on industry, job title and seniority. Personalization makes your ads more relevant and more likely to draw attention.

Creative design and copy

Want to increase the selling power of your ads by 10-20x? Our research found that creative B2B ads can get the job done. Aim for memorable visuals and concise but compelling copy with a clear call to action.

Contextual relevance

You don’t have to run display ads on every conceivable channel. Focus on the environments where your target audience is likely to be, and where they’re likely to be in the right mindset to receive your message.

A/B testing and optimization

Modern display ad campaigns create a wealth of useful data. Use that data to test ad variations and find which ones work the best for your audience. Test headlines, images, ad copy and calls-to-action – just remember to only test one variable at a time. 

Frequency capping

Have you ever had an ad follow you around the internet so much that you started hating the brand that served it? Frequency capping helps limit the number of times an ad will appear in a given time frame, to keep your brand on the right side of the persistent/annoying divide.

Ad placement optimization

Experiment with different placement options to find the most effective ones for your audience. Test websites, social media platforms, publishing networks and other digital channels to find the top performers. 

Rise Above the Clutter

The first banner ads had an easy time grabbing people’s attention. Back then, advertising on the internet was new – a brightly-colored banner with a “Click Here” button was all it took.

Now, audiences are more sophisticated. They’re likely to ignore ads that are irrelevant, bland or not personalized. Fortunately, you as a marketer have more ways to earn their attention than ever before. When creative ads combine with smart targeting and relentless optimization, the results can be amazing.

Subscribe to the LinkedIn Ads Blog for expert marketing advice on tap.