1. Home
  2. Marketing Glossary

Display advertising

What is display advertising and what is it used for?

Display advertising or display marketing is an online advertising format in which the ad or banner is displayed on a web page to promote a brand, service or product.

The banner can be created using images, texts, audios or videos, as well as a mix of several of these elements. In most cases, display advertising banners are usually displayed at the top and on the sides of the web page.

1. Objectives of display advertising

There are two main objectives when you want to run display advertising campaigns: branding and performance.

  • Branding. The aim is to position the brand in the consumer’s mind, gain authority and position the brand as a purchasing option for a specific product range. It is very common to guide consumers to the consideration stage, within the sales funnel.
  • Performance. The goal here is to work with quantifiable objectives, trying to convince customers to behave within a specific pattern. This could be, for example, to get new leads, generate sales, etc. For this purpose, display advertising uses, in addition to banners, elements such as subscription forms and landing pages.

2. Advantages of display advertising

There are many reasons why display advertising campaigns are advantageous, both to promote products and services. Here are some of the most relevant ones:

  • They get more traffic and more qualified leads than search campaigns.
  • They offer very precise audience targeting options.
  • They are more effective than search campaigns for branding and increasing brand awareness.
  • They allow for very effective automation and more mix and match possibilities.
  • Smart and interactive ads allow marketers to offer more personalized messages.
  • They allow marketers to control the ideal niches and contexts where to display the ads in order to improve results.
  • It offers multiple payment models depending on the objective of the campaign.

3. Payment models for display advertising

There are four basic payment models for display advertising. The choice of one or the other will only depend on the objectives you wish to achieve with the campaign and the money you can spend:

  • CPM (cost per thousand impressions). This is the most common model when the desired objective is to improve brand recognition and gain visibility. The advertiser pays each time its ad is shown a thousand times.
  • CPC (cost per click). It is designed for campaigns whose objective is to direct the user to a website or landing page. The advertiser pays each time a visitor clicks on the ad.
  • CF (fixed cost or flat rate). It is used to agree on a fixed remuneration for the space used by our display campaign, generally per day or per month. The webmaster will receive the money independently of the results obtained by the advertiser.
  • CPA (cost per action). This is the model where the advertiser only pays if the user has performed a specific action (a reservation, a purchase, a download, etc.) In other words, after a conversion is confirmed .