Display advertising

Display advertising consists of visual ads (banners, images, videos) shown on websites, apps and social platforms. Unlike search ads (which appear when someone is actively searching), display ads meet people while they are reading the news, scrolling through social media or browsing.

Display builds brand awareness and reminds people about products as the purchase decision approaches.

For some business goals, display is invaluable. For others, it is a waste of money.

Display builds brand and awareness

For new brands, new products or new markets where few people know the company, display is one way to build awareness.

The goal

to be remembered as the purchase decision approaches.

Example

A start-up launching a product has neither organic traffic nor brand awareness. Display campaigns with visually strong creative can reach thousands of people quickly and build awareness.

When these people later search for a solution, they remember the brand and are more likely to click.

Visual storytelling suits messages that need images

Some messages are communicated better visually than in text.

Example: A web agency can show screenshots of projects. A travel company can show destinations. An online shop can show products directly.

Text can tell you about a chair. An image can show how beautiful it looks in a room. A video can show how comfortable it is.

Remarketing and retargeting reach previous visitors

With display, you can reach people who have already visited the website but not converted. This is known as remarketing.

Example: Someone visits an e-commerce site, looks at three products, adds one to the basket but leaves without buying.

With remarketing, display ads can follow that person on other websites for days or weeks and remind them of the product. This can increase the chance that the person comes back and buys.

It works because the audience has already shown interest.

Display complements search

Display ads and search ads have different jobs and complement each other.

Together they create a more effective funnel.

How the Google Display Network (GDN) works

Google’s Display Network reaches people on millions of websites and apps and on Google’s own services (YouTube, Gmail).

Companies pay to show ads on websites in the network. Google matches ads to the right placements based on targeting settings.

How display works on social media

Facebook, Instagram, LinkedIn and TikTok all offer display advertising.

How display ads are bought through programmatic advertising

Display ads are bought automatically in real time through DSPs (demand-side platforms).

Demographic targeting is based on age, gender and parental status

Use

B2C companies with a clear audience. For example, baby products are targeted at parents aged 25 to 40.

Limitation

The method is not very precise, because many people in the same demographic group have different needs.

Interest-based targeting reaches people through what they like and follow

Target the ads by interests and behaviours.

Google

Affinity audiences (sport, food, travel, tech and so on)
Facebook: Interests based on likes, activity and the accounts the person follows

Use

Broader campaigns where the audience is defined by interests rather than search intent.

Example

A company selling running gear targets people interested in “running & jogging”.

In-market audiences reach people who are considering a purchase

People who are actively researching or considering a purchase in a specific category.

Use

Transactional campaigns. These people are closer to a purchase than those who are only generally interested.

Example

“In-market for CRM software” means people who google CRM, have visited comparison sites and have read reviews.

How to create your own audiences with custom segments

Create your own audiences based on search terms, URLs or apps.

Example

Enter search terms that describe the audience, and Google shows the ads to people who are likely to be interested in what those search terms are about.

Use

Reach people with display ads based on what they search for.

Contextual targeting follows the content of the page

Show ads on websites with relevant content.

Advantage

Relevance without tracking individuals (good for privacy).

Disadvantage

Less precise than behavioural targeting.

Placement targeting lets you choose websites and apps

Choose exactly which websites or apps the ads should appear on.

Remarketing audiences reach previous visitors

Show ads to people who have already visited the website.

Consent: Within the EEA, Google’s EU user consent policy requires visitors to have given valid consent to cookies where the law requires it, and to personalised ads. With Consent Mode, you control how Google’s tags behave when a visitor declines. Read more on the Remarketing page.

How visual design makes the ad stand out

Display ads compete with everything else on a web page. Strong visual elements determine whether people notice them.

This is what works

Contrasting colours

The ad must stand out from the website’s design. If the site is white or grey, use strong colours.

A clear main image

A large, clear image that immediately shows what the ad is about. Avoid too many elements.

Legible text

The text must be large enough to read without effort. Use a few large words on small banners (300×250).

Brand elements

Show the logo, so that people can see who is advertising.

How to write messages and copy

Short and punchy

Display ads have only a few seconds to catch attention. Longer copy does not work.

A clear CTA (call to action)

What should the viewer do?

• “Buy now”
• “Read more”
• “Book a demo”
• “Get 20 per cent off”

Value proposition: Why should people act? What do they get?

• “Free delivery on everything”
• “30-day money-back guarantee”
• “Limited time: 50 per cent off”

How to choose ad formats

Responsive display ads: Google automatically generates ads from uploaded images, logos, headlines and descriptions.

Custom image ads: Designed banners in specific sizes (300×250, 728×90, 160×600 and so on).

Video ads: Ads on YouTube or embedded in video players.

Recommendation: Start with responsive ads for quick tests. Once they work, you can invest in custom design for a stronger brand expression.

How the cost models differ

CPM (cost per mille, cost per 1,000 impressions): You pay for impressions, not clicks.

CPC (cost per click): You only pay when someone clicks.

CPA (cost per acquisition): Paying per conversion is an option with Target CPA and requires the account to meet Google’s eligibility criteria.

How to calculate the budget

Display is generally cheaper than search but needs greater volume to work.

Rules of thumb

Awareness campaigns

Calculate the cost per 1,000 impressions (CPM).

Worked example with assumed figures

100,000 impressions ÷ 1,000 × SEK 50 CPM = SEK 5,000

Performance campaigns

Calculate the cost per click or conversion.

Worked example with assumed figures

Goal: 100 conversions
CTR: 0.5 per cent
Conversion rate: 2 per cent
Clicks needed: 100 ÷ 0.02 = 5,000
Impressions needed: 5,000 ÷ 0.005 = 1,000,000
CPC: SEK 5
Budget: 5,000 × 5 = SEK 25,000

Recommendation

Test with smaller budgets first (SEK 10,000 to 20,000 per month). Scale up what works.

The goal determines which KPIs apply

How view-through conversions work

What it is

A person sees the display ad but does not click. Later, the person visits the site another way (organic search, direct) and converts. The default window for counting such a conversion is one day and can be set to up to 30 days.

Why it matters

Display builds awareness. People who see the ad may remember the brand, search later and buy. Without view-through tracking, it looks as if the display ad did not work, even though it may have contributed to the conversion.

How it is measured

Google Ads counts view-through conversions once conversion tracking has been set up.

When should you choose display and when search?

What you can expect from display and search

Display should not be compared directly with search on CTR or conversion rate, because the channels play different roles in the funnel.

Mistake 1: Remarketing is not used

The biggest mistake is not using remarketing.

Problem

Visitors who leave the site without converting do not always come back on their own. Without remarketing, it is harder to reach them again.

Solution

Set up remarketing campaigns for visitors who have given consent. It is often the easiest way to get started with display.

Mistake 2: The targeting is too broad

Problem

Showing ads to “everyone aged 18-65” wastes money.

Result

Low relevance, low CTR, high costs, poor ROI.

Solution

Start narrow (in-market audiences, remarketing, specific interests) and broaden gradually.

Mistake 3: The creative is generic and hard to read

Problem

Generic stock photos, small text, no clear CTA.

Result

People scroll past without clicking.

Solution

Invest in design, test several variants and A/B test creative on an ongoing basis.

Mistake 4: Frequency is not controlled

Problem

The same person sees the ad 50 times in one day.

Result

Irritation, banner blindness, wasted budget.

Solution

Set a frequency cap of no more than 3 to 5 impressions per person per day.

Mistake 5: The campaigns are measured the wrong way

Problem

Display campaigns are judged only on direct click conversions.

Result

Campaigns that build awareness and drive later conversions are ended too early.

Solution

Measure view-through conversions and analyse the increase in brand searches. Display has several roles.

How to handle brand safety

Where the ads appear affects the brand.

Problem: Ads can turn up on unsuitable sites (extremism, fake news, adult content) if placements are not controlled.

How to reduce ad fraud

Bots and invalid clicks waste budget.

Problem: Automated bots click on ads without being real potential customers.

How we go from campaign to results

Display advertising calls for a different way of working than search. Build for the long term, test creative and expect the value to show indirectly in many cases.

The process has six steps

How display advertising fits into the bigger picture

Display works best as part of a broader strategy.

How display and search ads work together along the buying journey

Start of the buying journey (awareness)

Display reaches new people and builds awareness.

Middle of the buying journey (consideration)

Display ads with remarketing remind people who have visited the site but not converted.

End of the buying journey (purchase)

Search ads catch people when they are ready to buy.

Together they create an effective funnel in which display builds awareness and keeps the brand in mind until the purchase decision is made.

Contact us about display advertising

Carnaby helps you build display campaigns that deliver results, from creative production to targeting strategy and ongoing optimisation.

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