Digital Marketing

What Are Display Ads? Google Display Network Guide

Talha Aslan 17 min read 2 views

What are display ads?

Display ads are visual ads that appear on websites, in mobile apps and on Google properties such as YouTube and Gmail. People do not search for them. They see the ad while they read, watch or browse. That makes display ads a tool for creating awareness and bringing visitors back, not for catching existing demand.

You may also hear them called banner ads or image ads. The difference from a search ad is the format: a display ad combines images, headlines and a logo. Therefore it suits brand awareness and remarketing goals well.

According to Google Ads Help, display campaigns serve visually engaging ads on the Google Display Network. In our work, we treat this campaign type as the visibility layer of the funnel, not as a stand-alone sales machine.

How does the Google Display Network work?

The Google Display Network is a large inventory of websites, apps and Google properties that sell ad space. Advertisers enter this inventory through an auction. When a user who fits your targeting lands on a suitable page, the system compares your bid with the other bids and picks a winner.

Google describes the network as reaching millions of sites and apps. Because the figures change over time, check the current number on the Google Ads Help page about Display ads.

In short, the process works like this:

  • Publishers open their ad space to Google's system.
  • You define your assets, targeting and bid.
  • The system chooses the best ad for each impression and runs the auction.
  • Measurement starts when a user clicks or completes the action you track.

In addition, Google decides where your ad runs, within the limits you set. You draw the boundaries with audiences, topics, placements and locations. For that reason, check your reports often in the first days. If you spot an irrelevant app, exclude it and protect your budget.

One point matters most: you cannot read intent the way you do in search. Targeting and creative quality therefore decide the outcome.

What formats do display ads come in?

Display ads come in two main formats: responsive display ads and uploaded display ads. With responsive ads, you provide images, headlines, descriptions and a logo. Google then assembles them to fit each placement. With uploaded ads, you supply finished images or HTML5 files and keep full design control.

Google Ads Help describes the responsive display ad as the default format. In contrast, uploaded ads give you more control over every pixel.

FormatHow you build itStrengthWeakness
------------
Responsive display adUpload images, headlines, descriptions, logoFits many placementsLimited control over combinations
Uploaded image adFixed-size image or HTML5 fileFull control over designNeeds separate files for each size
Gmail and YouTube inventoryRuns through other campaign typesNative, attention-grabbing spotsDepends on the campaign type

In practice, we start most accounts with responsive ads. Then we add uploaded ads for brand campaigns that need strict control.

If you upload ads, prepare the common sizes and check file limits in the help center. Also keep a clear brand mark on every ad, because users judge an ad in a single glance.

How do you build a responsive display ad?

To build a responsive display ad, first upload landscape, square and portrait images. Next add short and long headlines, descriptions and a logo. The system mixes these assets. As a result, each asset has to work on its own, because you do not pick which headline pairs with which image.

Follow these rules when you prepare assets:

  • Show one clear message and one product or service per image.
  • Also keep text out of the image, and move the message into the headline.
  • Write headlines from different angles: benefit, price, trust, urgency.
  • Add the logo in both square and landscape versions.
  • Provide several alternatives in every asset group.

For example, a furniture store can upload one living room photo with three different crops and three different headlines. The system then learns which combination performs best. We cover creative wear in more depth in our post on ad fatigue and how to fix it.

Which targeting methods work for display ads?

Targeting for display ads falls into two groups: audience targeting and content targeting. With audiences, you use interests, in-market intent, demographics or past interaction with your site. With content, you choose keywords, topics and placements.

Google Ads Help summarizes the options this way: audiences, keywords and topics, specific sites or pages, and demographics. In addition, optimized targeting uses extra signals to find people likely to convert. See the Display targeting page for details.

We use this pairing as a starting point:

  • Finding new customers: in-market and interest audiences.
  • Brand awareness: topic and placement targeting.
  • Users close to a sale: remarketing lists.
  • Known customers: customer list matching.

What is the difference between targeting and observation?

The targeting setting narrows who can see your ad. The observation setting does not narrow reach; it only reports how each audience performs. In other words, targeting limits delivery to your chosen audience, while observation lets everyone see the ad and shows you who converts better.

Many people mix these up. If you add an audience but leave it on observation, your reach stays wide. As a result, you may reach a far larger group than you expected.

We usually follow a simple order. For the first two weeks, we collect data with observation. Then we move the strong audiences to targeting and exclude the weak ones. For example, that way, the budget never gets stuck in a narrow audience on day one.

What is the difference between display ads and search ads?

Search ads show text to someone who is looking for something. Display ads show visuals to someone who is busy with other content. The first captures existing demand. The second creates or revives demand. Consequently, the two campaign types complement each other instead of competing.

CriterionSearch adsDisplay ads
---------
User intentHigh, active searchLow to medium, passive browsing
FormatTextImage, video, HTML5
Cost per clickUsually higherUsually lower
Conversion rateUsually higherUsually lower
Best goalSales, leadsAwareness, remarketing

The word "usually" in this table reflects field experience and general patterns, not a guarantee. In some industries the table flips. We plan the search side with clients through our Google Ads management service.

Who should use display ads?

Display ads suit any business that already gets site visitors and wants to bring them back. In addition, they work especially well for e-commerce, education, real estate and B2B services with a long decision cycle. In those markets, people rarely decide on the first visit.

Consider display ads first in these cases:

  • Your site has enough traffic, but conversion is low.
  • You need to introduce a product or explain a category.
  • You want to win back users who abandoned their carts.
  • Search volume is small because you sell something new.

On the other hand, do not put your first ad budget only into display if nobody searches for your category yet. Capture existing demand with search first. Then expand with display.

However, local businesses have a narrower use case. Location targeting can reach people in a specific area, but a small area exhausts its audience quickly. So combine remarketing with a small awareness budget.

What goals can display ads serve?

Display ads can work at all three funnel layers: awareness, consideration and conversion. In practice, you change the audience, creative and measurement to match the goal. Expecting both brand awareness and direct sales from the same campaign often leads to disappointment.

You can match goals like this:

  • Awareness: broad audience, strong brand image, reach and impression metrics.
  • Consideration: interest audiences, a message about product benefits, site visits and engagement.
  • Conversion: remarketing lists, a clear offer, conversions and cost per conversion.

For example, a new online course site starts with an awareness campaign. A few weeks later, it adds site visitors to a remarketing list. Then it shows that list a discount or a free trial. Each layer therefore uses the data from the one before.

We suggest reflecting the goal in the campaign name. When you read "awareness" and "remarketing" campaigns separately, you see which layer actually works.

How do you set up a display campaign step by step?

To set up a display campaign, you pick a goal, choose the campaign type, set budget and bidding, add audiences and upload assets. Therefore, set up conversion tracking before the campaign goes live. Otherwise the system does not know what to optimize for.

Follow these steps:

  • Define your conversion actions and test them.
  • Choose the campaign goal: sales, leads or website traffic.
  • Set locations, language and daily budget.
  • Pick a bidding strategy.
  • Add audience signals and content targeting.
  • Upload responsive ad assets and preview them.
  • Tag your links with UTMs; our UTM builder speeds this up.

After launch, avoid big changes during the first week. Read the data once the learning period ends.

Which bidding strategy should you choose for display ads?

Choose your bidding strategy based on your goal and the conversion data you have. Without enough conversions, start with a click-focused strategy. Once data builds up, move to conversion-focused smart bidding such as target CPA or target ROAS.

Google Ads Help lists smart bidding strategies and a pay-for-conversions option. Because of this, we manage the switch like this:

  • With no data: maximize clicks or manual bidding.
  • When conversions arrive regularly: maximize conversions.
  • When data is stable: target CPA or target ROAS.

Also, before you set a target ROAS, know your profitability threshold. Our ROAS calculator helps with that. For background on recent changes, read our post on the Google Ads bidding update.

When you change the strategy, the system starts learning again. Frequent changes therefore make performance jump around. After a change, wait at least two weeks, and do not change budget and target at the same time.

How do you run remarketing with display ads?

Remarketing means showing ads to people who already visited your site or app. First you build visitor lists, then you add those lists to a display campaign. As a result, you reach people who already showed interest, usually at a lower cost.

First, split lists by behavior. Show product-focused messages to cart adders and information-focused messages to blog readers. Exclude buyers, because showing the same ad to someone who already bought wastes budget.

Here is an example calculation. Say a site has 20,000 monthly visitors and 6,000 of them enter a remarketing list. If you target an average of 3 impressions per week for that audience, you plan roughly 72,000 impressions per month. These numbers are an example calculation only.

Frequency control matters too, so plan it early. An ad that appears too often annoys people. Set a frequency cap and match list duration to the buying cycle. Short cycles call for short windows, and long cycles call for longer ones.

For more depth, read our post on strengthening the sales funnel with remarketing.

How do display ads work for e-commerce?

In e-commerce, display ads show their clearest value through product-based remarketing. For example, a user views a product and leaves. Later, that user sees the same product or similar ones on other sites and apps. For this flow, your product data has to stay clean and current.

Before you start, prepare these items:

  • Keep product data current: price, stock and image must be right.
  • Split cart adders, product viewers and buyers into separate lists.
  • Exclude buyers from the remarketing campaign.
  • Keep list duration short for seasonal campaigns.

For example, you remind a user who looked at a winter coat during the first days after the visit. Weeks later, you change the message. That way, you do not show the same ad to the same person forever. To weigh shopping ads on the search side, see our Google Shopping guide.

How do you measure display ad results?

Measurement for display ads includes clicks and conversions, plus the effect after a view. Users often see an ad, do not click, and then search for your brand later. Therefore, looking only at last-click data makes display look weaker than it is.

Track these core indicators:

  • Impressions and reach: how many people the ad reached.
  • Click-through rate: how well the creative earns attention.
  • Conversions and cost per conversion: the direct result.
  • View-through conversions: the effect on people who saw the ad but did not click.
  • Brand search lift: a sign of indirect impact.

Do not treat view-through conversions as proof on their own. Besides, the same user may have already decided to buy. Read them together with search, email and direct traffic. For example, you can check click-through rate with our CTR calculator.

To build solid measurement, keep your conversion definitions simple. Count a purchase or a form submission as the primary conversion. Track weak signals such as page views as secondary. Otherwise the system bids on worthless actions and moves your budget in the wrong direction.

How do you control placements and brand safety?

A placement is the site, app or video channel where your ad ran. For example, you review the placement report regularly and exclude low-quality or irrelevant placements. That way, your budget does not drain into apps that have nothing to do with you.

We suggest this weekly check:

  • Open the placement report and sort by spend.
  • Flag placements with high spend and no conversions.
  • Exclude children's apps and irrelevant content if you see them.
  • Use content exclusion settings for sensitive topics.
  • Keep the exclusion list at the account level.

This check prevents one of the most common problems in our post on Google Ads mistakes that waste budget. For brand safety, define the topics you never want to appear next to before the campaign starts.

How do you plan a display ads budget?

Plan the budget around the goal first, then around the data you have. For remarketing, a small and steady budget is enough. For finding new audiences, you need a wider test budget. Always think about the total together with your search budget.

Here is an example calculation. If your total monthly ad budget is 50,000 TL, a starting range from field experience is 10 to 25 percent for display. This range is not a guarantee, and it changes by industry and goal.

Distribute the budget in this order:

  • Protect search and brand campaigns first.
  • Give remarketing a small share next.
  • Use the remaining share for new audience tests.
  • After four weeks, redistribute based on results.

For a more detailed method, see our guide on how to set a B2B Google Ads budget and our Google Ads budget calculator.

What makes display ad creative more effective?

Effective display creative carries one message, reads at a glance and includes a clear call to action. Users scroll fast, so your ad has only a few seconds to earn attention. A cluttered image wastes that time.

We apply these rules to creative:

  • Show the product or service in a real context.
  • Put one benefit in the headline, not two.
  • Keep the call to action concrete: "Get a quote", "Try free", "Browse the catalog".
  • Use brand colors consistently so users recognize you again.
  • Test legibility on a small phone screen first.

Banner blindness plays a role here. Users skip banner-like elements without noticing. Our post on banner blindness and eye-catching creative collects tips to beat it. In short, simple, consistent and constantly tested creative wins.

How do you test display ad creative?

To test creative, change one variable at a time. Test the image first, then the headline, then the call to action. If you change three things at once, you cannot tell which change caused the result. Patience and order matter.

A simple test plan works like this:

  • Prepare two or three alternatives.
  • Give each one enough budget for a fair chance.
  • Wait at least two weeks and avoid early decisions.
  • Pick the winner by conversions and cost per conversion, not click-through rate.
  • Test the winner again against a new alternative.

In responsive ads, Google labels asset performance. Still, do not treat those labels as the final answer. Compare them with your own conversion data.

Where should users land after a display ad click?

A user who clicks a display ad should land on a page that matches the ad's promise. The home page is usually the wrong choice. The user comes from a cold audience, and if the page does not show what they expect, they leave. As a result, that lowers your conversion rate.

Also check these points on the landing page:

  • Match the first screen to the ad headline and image.
  • Keep the page light so it opens fast on mobile.
  • Choose one main action: a form, a call or a purchase.
  • Add trust elements: reviews, references, return terms.
  • Separate each campaign's traffic with UTM tags.

For example, an ad for cart abandoners should send the user straight to the cart. Otherwise even a strong remarketing list goes to waste. For this reason, design the ad and the landing page as one unit.

What are the most common display ad mistakes?

The most common mistakes are launching without conversion tracking, squeezing audiences into targeting mode instead of observation, and never checking placements. Using a single image and judging results only by clicks are also common errors.

Teams often fall into these traps:

  • Putting every audience into one campaign with no separation.
  • Leaving buyers on the remarketing list.
  • Uploading low-resolution or text-heavy images.
  • Sending clicks to an irrelevant page.
  • Changing things all week and resetting the learning.

You prevent most of these mistakes by thinking through the campaign structure first. If you want a quick first look at an account, our Google Ads audit tool gives you a starting point. When ROAS drops, read our post on ROAS drop causes.

Are display campaigns moving to Demand Gen?

Google is putting its AI-powered, visual-first campaigns forward under the Demand Gen umbrella. The timing and scope of the shift may differ by account. For that reason, check the announcements inside your own account and the Google Ads Help Center on a regular basis.

We covered the shift in a separate post. Read our article on Google display campaigns moving to Demand Gen for details. For setup, our Demand Gen campaign guide walks you through each step.

In short, your display knowledge is not wasted. Targeting logic, creative discipline and measurement habits still apply to the newer campaign type.

Should you choose display ads or Demand Gen?

The choice depends on your goal and resources. If you want placement and audience control across a wide inventory, display logic helps. If you want to create demand with image and video on feeds such as YouTube, Gmail and Discover, Demand Gen fits better.

QuestionDisplayDemand Gen
---------
Main goalReach and remarketingDemand creation, visual storytelling
CreativeImage, logo, headlineImage and video heavy
ControlPlacement and content targetingAudience signal driven
Starting pointRemarketing listExisting customer and interest audiences

A practical tip: if a display setup already works in your account, do not switch it off suddenly. Test the new campaign type side by side with a small budget. Then compare the results.

Use the same period, the same audience and the same conversion definition in the comparison. Otherwise you cannot compare the two fairly. Also look at total contribution, not only last click, because visual campaigns often influence sales indirectly. A window of four to six weeks is a reasonable start for a first decision.

How do you run display ads during the first 30 days?

Split the first 30 days into four weeks. Week one covers setup and conversion checks. Then comes the learning period in week two, when you do not interfere. Week three covers audience, placement and creative analysis. Finally, week four is when you make budget and bidding decisions.

A weekly checklist could look like this:

  • First week: test tracking codes, UTM links and the landing page.
  • In the second week: only check whether the budget is spending and the ads are live.
  • By week three: clean up placements and replace weak creative.
  • Finally, in week four: move strong audiences to targeting and redistribute budget.

This calendar is not fixed; it flexes with industry and budget. Still, a steady rhythm protects the campaign from random changes.

Also ask the same three questions every week: where did the budget go, which audience converted, and which creative wore out? Those three answers almost write the next week's plan. If you keep notes, you will also remember what worked months later.

When do you need expert help with display ads?

Display campaigns need a few weeks of learning and regular optimization. Outside help pays off when conversion tracking is incomplete, when budget goes out without results, or when you plan the move to Demand Gen. The goal is not to complicate the campaign but to simplify it.

At Talha Aslan and team, we plan display, search and remarketing inside one funnel. First we review the existing account. Then we fix the measurement setup. After that, we open campaigns step by step.

The most common picture we see: an account has display spend, but nobody knows which audience converts. In that case, we gather the data first. Next we split the campaigns by goal, and then we report results weekly.

If you want a roadmap for your account, explore our Google Ads management service. In short, steady measurement, a clear goal and patient optimization are the three pillars of display advertising.

Frequently Asked Questions

What are display ads and what are they used for?
Display ads are visual ads that appear on websites, in apps and on Google properties. Businesses use them to build brand awareness and to bring back people who already visited the site. Unlike search ads, they do not capture active intent. Therefore, you usually plan them next to search campaigns as the visibility layer of the funnel.
Are display ads and banner ads the same thing?
Mostly, yes. Display is the formal name for the campaign type, while banner ad is the everyday term for a fixed-size image. In practice, people use both words for the same idea. Search for either term and you will find the same guidance, although display also covers responsive and video formats.
Do display ads bring sales?
They can, but their role is usually not to close the sale alone. Remarketing campaigns tend to deliver results close to a sale. Campaigns aimed at new audiences mostly build awareness and create indirect effects. To see the real contribution, read view-through conversions and brand searches together with direct results.
What is the minimum budget for display ads?
There is no fixed minimum. Goal, industry and audience size decide it. A small remarketing list may work with a low daily budget. New audience tests need enough conversion data for the system to learn. Therefore, define your goal first, then use a budget calculator to set an example budget.
Which targeting works best for display ads?
In most accounts, remarketing lists give the steadiest results because users already know the brand. To find new customers, in-market and interest audiences stand out. Results still vary by industry. For that reason, test targeting in observation mode first and narrow it based on your own data.
Is Demand Gen replacing display ads?
Google is putting visual and video campaigns forward under Demand Gen. The scope and timing of the shift can differ by account. Therefore, follow the announcements in your Google Ads account. Do not shut down a working display campaign overnight; test the new type with a small budget and compare the results.
  • display ads
  • Google Display Network
  • responsive display ads
  • remarketing
  • Demand Gen
  • Google Ads
  • banner ads
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Talha Aslan

Google Partner digital marketing expert. Hands-on with SEO, Google Ads, web design and e-commerce projects since 2012; every post here comes from that experience.

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