Display and banner ads are two of the most popular forms of digital advertisements. Both aim to promote your products and lift brand awareness in the digital space.

Although they share similarities, they also have their respective differences. In the ever-evolving world of digital advertising, knowing the key difference between display and banner ads is essential for running successful marketing campaigns.

This article helps you understand all the differences between display and banner ads in terms of format, placement, functionality, campaign objectives, and ad performance. It will also show you which type of advertisement is the right for your business. So, let's walk through this article without any further delay!

What Are Display Ads?

Display ads are online ads that combine a variety of visual components, such as videos, images, audio, and interactive multimedia materials, with a CTA (linked to the landing page) to promote services or products. They are visually appealing and usually appear on websites, mobile applications, or social media platforms.

Display advertising draws viewers with attention-seeking visuals and persuasive copy. Display ads offer small businesses and brands a measurable way to achieve their marketing goals. They are "push" advertising and work differently than their paid search counterparts.

Examples Of Display Ads

Whether you are curious to know more about display ads or want to get inspiration for your next display ad campaign, these display ad examples will be of great help:

  • SEMrush

First of all, the CTA is attention-grabbing. Besides that, the bright orange color used here creates a visual contrast, easily gets audiences' attention, and guides them to take action. So, how would visitors not click the ad and explore the offerings?

  • Chanel

The ad conveys beauty, elegance, and simplicity. Its color palette and minimalist design reflect the brand's timeless image. Plus, minimal text conveys the message, making it one of the most memorable and impactful online display ads.

What Are Banner Ads?

Banner ads are a subgroup of display ads. Their defining characteristics are moving or static elements and a rectangular shape. In online advertising, banner ads are usually placed on websites at different positions, like the top, bottom, or dies.

Banner ads are a great way for small businesses to boost brand recognition and get direct responses from the target audience. Digital marketing with banner ads is cost-effective and lets you easily attract customers. Static banners, expandable banners, pop-up banners, run-of-site banners, animated banners, static banners, infographic banners, and lightbox banners are a few of the banner ad types.

Banner advertisement lets the websites sell ad space, much like the bulletin or billboard owners do. Though banner advertisement works the same way as other traditional advertisements, how the advertiser pays the host is completely different from traditional advertisements. The host is paid for the ads through three different ways:

  1. Cost per click
  2. Cost per impression
  3. Cost per action

Banner Ad Examples

Below, you can find a few examples of banner ads:

  • Amazon Music

It is a vertical banner ad. With this ad, Amazon Music received more than 2.4 billion impressions in the USA (from August 2023 to October 2024). The bright yellow color easily gets the audience's attention. The purple CTA compliments the background and urges the audience to try it now.

In addition, the ad's logo helps brand recognition and clearly explains what has been advertised. The slogan communicates the key benefits and adds value to the ad.

  • Yahoo Mail

This Yahoo Mail ad was launched in 2019, but it is still used as it is, and since then, it has been delivering remarkable results. It indicates how well-designed this ad is. The most powerful part of this ad is its slogan, which taps into the viewers' pain points (difficulty in searching for emails). Plus, the banner ad also uses creative imagery to create a visual interest in the audience.

What Are The Principal Differences Between Display Ads And Banner Ads?

Let’s see here what the key difference between display and banner ads is:

#1. Format and Appearance:

There are many types of displays, from broad categories to specific ones. Each of them has a specific format and can appear in multiple forms, including:

  • Text-Based: Text-based ads are one of the most common display ad types. These ads are simple, include text only, and are used for marketing communication. In the case of text-based ads, you should know your audience and target them precisely.
  • Image-Based: The ads can have visual graphics or images. These ads are very easy and quick to create.
  • Video-Based: Display ads can be video-based and include short video clips. This allows them to easily grab the audience's attention and tell a story about your products or services. Such ads can also include audio, which enhances the visual experience. These ads are the best way to urge the audience to click on the ad.
  • Rich Media ads can include video, audio, or other multimedia elements that provide an immersive experience. They are much different from static ads, which mostly include images or text. These ads are considered one of the best ways to interact with the audience, stand out from the competition, and increase view rates.

Compared to display ads, banner ads usually consist of static images or animations and clickable links. These ads are usually found in a rectangular position on websites (leaderboard or skyscraper). Leaderboard banner ads are also known as horizontal banners. These ads are highly noticeable, and content users can easily notice them when they visit a page.

On the other hand, skyscraper ads are thin and tall (just like the skyscrapers). Large skyscraper ads are also half-page ads as they take maximum space on the page and become prominent. These ads are considered one of the fastest-growing ad sizes in spaces and impressions.

#2. Placement:

Display ads are a crucial tool for most businesses to reach potential customers. They can appear on many websites, mobile applications, Gmail, Social media, and YouTube. Banner ads are restricted to specific places on web pages, like the header, footer, or sidebar.

Display ads appear in different placements on web pages, such as interstitials, native ads, or in-feed ads. By leveraging the vast reach of display ads, businesses can easily target their ideal audience.

#3. Functionality and Interactivity:

Display ads can incorporate advanced and interactive features like video, audio, interactive maps, expandable elements, or even forms that effectively engage the audience, and they fill them without leaving the ads. You can easily personalize these ads efficiently, boost user engagement, and create brand differentiation.

Banner ads usually drive users' attention because of their colors and visual harmony. They include a simple call to action (CTA) and lead the audience towards the advertiser's landing page or website. Banner ads increase engagement, enhance user experience, boost conversion rates, and give advertisers a higher CTR. However, compared to display ads, banner ads are less interactive.

#4. Ad Campaign Objectives:

By setting up the display ad campaigns, you can achieve various marketing goals, including:

  1. Building the brand awareness
  2. Drive action
  3. Influence consideration
  4. Nurture leads and engages the audience
  5. Improve conversion rates
  6. Retarget the site visitors
  7. Or to reach a specific audience by using sophisticated targeting options

Banner ads are easy to create, cost-effective, and are an impactful way to:

  1. Increase customer traffic and brand awareness
  2. Grab customer attention or sell the products
  3. The target audience is in several ways
  4. Remarketing
  5. Increase leads

‍#5. Ad Performance:

The ad performance matters a lot, just like its cost. So, before investing in banner or display ads, it is crucial to know about their performance. Well, the data says that display ads have a larger viewership and higher engagement rates as they include interactive elements. However, banner ads are not as effective as most visitors ignore them. That is why, as compared to display ads, the banner has a lower CTR.

#6. Ad Network:

The display ads are part of the GDN (Google Display Network), which has a greater reach. The network places your ads on different platforms, like apps and websites, which lets you reach a wider audience. Also, GDN offers various targeting methods, like interest-based audience targeting, demographic-based audience targeting, and behavior-based targeting.

It is unarguable that banner ads are part of display ad networks. However, banner ads are usually restricted to specific positions, sizes, and shapes, significantly reducing their reach compared to display ads.

Display Ads Vs Banner Ads: How To Choose?

So, for now you know about the display ads effectiveness, banner ads effectiveness, and the differences between the both. But, still you do not know how to choose between display ads and banner ads, let us help you in this regard:

#1. Identify Your Marketing Goals:

So, first, decide your marketing goal. For example, banner ads can do the job right if you want to boost brand awareness. With vibrant colors across websites and social media platforms, banner ads promote your brand and convey your message effectively.

Traditionally, GDN is used for brand awareness. So, display ads are usually seen by those watching YouTube, checking emails, or browsing the internet. But even then, digital marketing with display ads can help you get and convert leads. Due to their interactive elements, display ads are more effective for higher interactivity and audience targeting.

#2. Consider Your Budget:

As stated above, banner ads are simple, static, easier to create, and cost-effective ways to promote your products. The CPC or cost of banner ads can be from a few cents to a few dollars. So, if you have a limited budget and need an effective way to reach the target audience, banner ads are the right choice for you.

The average CPM or cost of display ads is $3.12, but the price can vary depending on the format. So, if you are not on a tight budget, go for display ads, as they assure better CTR and engagement because of their advanced targeting and functionality.

#3. Evaluate the Complexity of Your Product or Service:

When you fail to decide between banner and display ads, try to find how complex your services or products are. For instance, if your products or services are simple, banner ads with images or text would be enough to capture the visitor's attention, and you can easily drive the clicks.

But if your services are a bit complex and you need to provide more details, display ads with the rich media feature will be the right choice. They can interactively showcase your products and drive stronger user response.

#4. Understand Your Audience:

Banner ads include text, graphics, and a CTA button. Both big and small companies use banner ads to reach a broad online audience. So, if you also aim for mass exposure at lower costs, go for banner ads.

But if you want to target a specific audience based on interests, behavior, or demographics, display ads will work for you. Display ads are strategically placed on different digital platforms and websites, ensuring exposure to a specific audience interested in your products or services.

#5. Measure Engagement and Interaction:

Banner ads usually contain an image or a simple animation, giving a better visual impression. Companies that want to increase their brand awareness go for banner ads. These banners can capture users' attention, and once they have recognized your brand, they can click on the ad effortlessly. But most of the time, they suffer from banner blindness.

Compared to them, visitors can easily interact with the display ads because of the interactive elements they contain. So, display ads are the right choice if you want to develop a better and strong relationship with your visitors and want to urge them to take action.

#6. Look at Your Creative Resources:

You should also look at your creative team. If you have limited resources, banner ads can be great, as they are simple and easier to create. You can create effective banners and post them across different platforms with just a few design elements.

Unlike them, display ads involve interactive elements, are challenging to create, and require more resources. If your team can design display ads, go for them. With display ads, you can create an impactful marketing campaign and bring life to your brand.

#7. Evaluate Ad Performance Over Time:

Evaluation of performances of both banner and display ads can help you decide which can work better for you in the long run. So, for that, test both banner and display ads through small marketing campaigns.

To assess the success, you can consider various parameters like engagement, conversion rates, impressions, and CTR. Typically, banner ads are good for exposure, while display ads are the right choice to boost user engagement.

How To Create Display Or Banner Ads?

If you are going to start your marketing campaign, but don't know how to create effective display ads or how to create effective banner ads, here is a step-by-step guide for you. Fortunately, you can easily create banners and display ads using the same method and tool (Abyssale).

So, let's look over the steps you will be following to create a display ad and a banner ad:

  • Step 1: Define The Objective Of the Campaign

When creating the banner or display ad, it is crucial to understand your goal. Without an objective or goal setting, you will create a click-through picture. That is why it is crucial to think about the whole process.

Understand that the purpose of the banner or display ad is not to urge the audience to click on it. The primary goal is to increase conversions, boost brand awareness, and attract more buyers (or downloads for the product). You should always set your goal and then design the ad campaign around that goal.

  • Step 2: Identify Your Target Audience

Next, think of your audience. For that, you should ask yourself, "Who is my audience? What are their needs? What do they want? And most importantly, what will make them click on your ads?" Answering these queries is pretty easy, as you know your audience very well.

If you create banner ads for your customers, you should know who they are targeting. By researching your target audience, you will ensure that you hit the mark and create a banner ad to make the marketing campaign successful.

  • Step 3: Choose The Right Ad Format

Now, select the size and choose the right ad format. As you use the Abyssale for ad creation, the tool offers you 100s of banner ad formats. So, you can pick any of them. You can also create your formats and save them for later use. The other advantage of Abyssale is that it is a true multi-format design tool. So, the designers can create multi-format marketing campaigns in 1/10th of the time. So, what do you need more?

  • Step 4 Create The Ad Design (With Abyssale)

After selecting the format, you will create the ad design using the top toolbar. You can add video elements, text elements, buttons, images, color blocks, and whatever else you want from the toolbar.

If you don't have any images, try royalty-free images or videos from the builder. With Abyssale, you can get everything a designer needs to create high-quality display or banner ads.

Start adding the elements one by one. From the right-hand column, you can manage the parameters for each element. For instance, when adding the text, you can select the color, font style, and size according to your needs.

Do not forget to add the CTA (call to action) to your banner, as it is necessary for better ROI (return on investment). It can be a button (which gives a better impact) or a text element. Once your banner or display ad is ready, click "Generate" and download your file.

  • Step 5: Select The Right Platform For Ad Placement

Ad placement is one of the essential elements of successful digital marketing campaigns, and it significantly impacts how your ad grabs the audience's attention. So, you cannot ignore it. If you know your audience, choose the platform and place according to their interests and behavior. It will help you get exceptional results.

If you do not know their behavior, place the ads in the top positions. Top ads can easily grab the audience's attention more than those placed on the right side.

  • Step 6: Set The Budget And Bidding Strategy

Another important thing to set is a daily budget. The budget decides how often and prominently your ad will appear. You can also change your daily budget anytime. After the budget, you need to specify the bidding strategy.

The bidding strategy decides how your budget will be spent. If your goal is maximum clicks, you should choose to maximize clicks or manual CPC. But if you aim for conversions, you must consider Maximizing conversions, Target CPA, or Target ROAS bidding.

  • Step 7: Launch Your Ad Campaign

Launch your ad campaign once you have set the budget and bidding strategy. After launching the ad campaign, wait a few days to see how your template performs. Based on these results, you can later optimize your campaign.

  • Step 8: Monitor And Optimize Your Campaign

You should carefully monitor your ad campaign's performance and results. View rate and click-through rate can provide helpful insights. Evaluate whether your campaign is helping you achieve your goals.

If not, you must optimize your display or banner ads. The strategy is simple if you don't know how to optimize them. For instance, you can add attention-grabbing headlines, write straightforward words to direct your audience, add targeted keywords, or use high-quality, stunning visuals.

  • Step 9: Analyze Results And Refine

Remember that optimization is an ongoing process. So, set a time for data evaluation and look for areas of improvement. Also, you can compare the predefined KPIs and your campaign performance. It will let you know whether you are meeting the campaign goals. It will help you create one of the most effective market campaigns!

Conclusion

The global spending on banner advertisements is expected to reach 174.10 billion dollars, while the annual expenditure on display ads will increase to 266.6 billion dollars in the coming years. Considering this data, understanding the distinctions between the two can help you maximize your marketing efforts.

For instance, banner ads will be enough to boost brand awareness, but display ads are the right choice for lead generation. Likewise, display ads help you target a specific audience, while banner ads give you access to a broader audience. So, choose any of both that suit your marketing objectives and get help from Abyssale to generate compelling banner or display ads!