The Pros and Cons of Using Display Ads for Your Business

The Pros and Cons of Using Display Ads

As a business owner or marketing manager, you have likely heard of display ads and their potential to reach a wide audience and increase brand awareness. However, before diving into this form of advertising, it’s crucial to understand both the benefits and drawbacks of using display ads for your business. 

Advertising is a critical component of a company’s success. Online advertising is becoming increasingly successful and popular. Nowadays, they are preferred to previous advertisements—on television, radio, billboards, magazines, and so on—because they are becoming more successful. 

Display ads are a type of PPC ad (pay-per-click). They are an essential component of web marketing. They are a good strategy that can bring you good profits and a large number of conversions. 

With this type of advertising, remarketing is crucial and, if done well, will bring you only pros. They are an essential component of web marketing. 

In this blog post, we will take a closer look at display ads and compare and contrast the pros and cons of using them as a marketing strategy.

display ads
display ads

What are Display Ads?

Display ads are a form of online advertising that appears on websites, apps, and other digital platforms. These ads are typically in the form of banners, videos, or other visually engaging ad formats. 

As already mentioned, most display ads are a type of PPC ads. They are graphic ads that appear on various search engines, social networks, apps, and other sites. They can be photos or videos, including text and sometimes audio. They are like all other advertisements and seek to attract customers. 

Since most of them are PPC, you will only have to pay when someone clicks on the ad. You can also set your cost-per-click. Most such ads seek to motivate users to action.

They can be used for several purposes, such as promoting products or services, increasing brand awareness, or remarketing to past customers.

What are display ads

Pros of Using Display Ads

Increased Brand Awareness 

One of the benefits of using display ads is that they can help increase brand awareness. By reaching a wide audience through various websites, apps, and digital platforms, display ads can help expose your business to potential customers who may not have otherwise known about your company.

Targeting Capabilities

Display ads also offer a wide range of targeting options. You can target specific demographics, such as age, gender, and location, or even target specific interests and behaviors. It allows you to reach a highly targeted audience and increases the chances of your ad being seen by potential customers.


Compared to other forms of advertising, display ads can be relatively cost-effective. You can purchase them on a cost-per-click (CPC) or cost-per-impression (CPM) basis, which means you only pay when someone clicks on or views your ad.

display ads - Cost-Effectiveness

Cons of Using Display Ads

Potential for Ad Fatigue

While display ads can be effective in increasing brand awareness, they can also lead to ad fatigue. With so many ads competing for attention online, viewers can become desensitized to them, which can lead to lower engagement and click-through rates.

High Costs

While display ads can be cost-effective, they can also become expensive if not managed properly. Depending on the targeting options and ad formats you choose, costs can quickly add up, and if your ads are not performing well, you may end up wasting money.

Low Click-Through Rates

Another downside of display ads is that they often have low click-through rates (CTR). The average CTR for display ads is around 0.1%, which means that for every 1,000 impressions, only one person will click on the ad.

cons of display ads

Best Practices for Using Display Ads

A/B Testing

A/B testing for display ads involves comparing two or more versions of an ad to determine which one performs better in terms of engagement, click-through rate (CTR), conversion rate, or other metrics. It is done by randomly showing different versions of the ad to different groups of people and then measuring the results to see which version performed the best.

To conduct an A/B test for display ads, you first need to create multiple versions of the ad, each with a diverse design or message. The variations can be little, such as changing the color of a button, or more significant, such as using a different image or headline. Following the creation of the ads, they are randomly shown to other groups of people, and the results are measured and compared to determine which ad performed the best.

A/B testing can be done on various platforms, such as Google Ads, Facebook Ads, and others. The ads are shown to different groups of people, and the results are measured and compared to determine which ad performed the best.

It is important to note that A/B testing should be done in a way that eliminates bias and allows for enough data to be collected to make statistically significant conclusions. It is also crucial to have a clear hypothesis, a specific metric to measure, and a large enough sample size to get accurate results.

Additionally, A/B testing can be expanded to multivariate testing (MVT), where multiple variations of multiple aspects of an ad are tested. It allows for more detailed insights into what elements of an ad are driving performance.

Targeting the Right Audience

By targeting the right audience, you can increase the chances of your ad being seen by potential customers. Make sure to conduct research on your target audience and use the targeting options available to reach them.

Creating Engaging Ad Content

The key to a successful display ad is creating visually engaging and compelling content. Use visual storytelling and consider ad placement to make sure your ad stands out and grabs attention.

Best Practices for using display ads

Why Use a Digital Agency for Display Ads

One of the best ways to ensure your display ad campaign is successful is by working with a digital agency. A digital agency specializes in creating and managing online advertising campaigns, and they can help you navigate the various ad formats, targeting options, and best practices for using display ads.

Here are a few reasons why you should consider using a digital agency for your display ad campaign:

  • Expertise: A digital agency has a team of experts creating and managing display ad campaigns. They know the ins and outs of the advertising platform, and they can help you make informed decisions about ad formats, targeting, and ad placement.
  • Data and Analytics: A digital agency can help you track the performance of your display ad campaign and make data-driven decisions. They can provide you with analytics on click-through rates, engagement, and other metrics that can help you optimize your campaign for better results.
  • Cost-Effectiveness: By working with a digital agency, you can save time and money on your display ad campaign. They can help you find the most cost-effective ad formats and targeting options, and also help you manage your budget and avoid overspending.
  • Creativity: Digital agencies have a team of creative professionals who can help you develop visually engaging and compelling ad content. They can help you tell your brand story through visual storytelling and make sure that your ad stands out and grabs the viewer’s attention.
use a digital agency

When using display ads as a marketing strategy, it is crucial to weigh the pros and cons and consider your business’s goals and resources. While display ads can be effective in increasing brand awareness and targeting specific audiences, they also have potential drawbacks such as ad fatigue, high costs, and low click-through rates. 

By following best practices such as A/B testing, targeting the right audience, and creating engaging ad content, you can increase the chances of your display ad campaign being successful. 

And if you want to ensure that your display ad campaign is successful, consider working with a digital agency. They can provide you with the expertise, data, and creativity you need to create a cost-effective display ad campaign.

Book a call with our specialist today if you want to learn more about how a digital agency can help your business with display ads. Our team of experts will be happy to answer any questions you may have and help you develop a display ad campaign that meets your business’s goals and resources.
If you want to schedule your free consultation, you can do it here.

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