Display Advertising Effectiveness Report 2023 – Research on the Best Display Ad Types for Generating Leads and Sales

Display Advertising Effectiveness Report 2023

Content Roadmap

We get it – with so many options out there, it can be tough to figure out which type of display advertising is right for your business. We know the struggle! But don’t worry; we’re here to help make things clearer.

You want to use display ads to reach more customers and boost sales, but how do you know which types work best? Let’s talk about that.

In this report, we’ll walk through the different display ad options, like banner ads (the digital billboards of the internet!), video ads, and native ads. We’ll share real-world examples and data so you can learn which types drive the best results. By the end, you’ll be ready to create winning display campaigns!

What are the different types of display ads?

Different types of display ads

Let’s start by covering the main display ad options out there.

First up is the OG display ad – the banner ad. We all know banner ads – they are like the digital billboards of the internet! Simple and straight to the point.

Next we have video ads. These ads bring your product or service to life – letting you showcase it in action. From 15-second promo spots to tutorials and demos, video ads engage viewers with motion, sound, and visuals.

And then we have native ads. These ads blend seamlessly into the surrounding content, like a chameleon! They match the design and style of the websites and apps where they appear.

How do display ads work their magic?

Now that we know the main display ad types, let’s peek behind the curtain and see how they work their magic.

Display ads grab attention with eye-catching elements like images, video, and bold captions. Strategic placement also helps them shine – just like physical billboards are designed to be seen.

For example, 300×250 banner ads on news sites average 0.05-0.08% clickthrough rates. Video ads on YouTube tend to see higher engagement.

These ads can then drive action through clicks, which advertisers can track. Links take users to landing pages or directly to products to purchase.

And display ads allow for retargeting – tracking who sees or clicks on an ad and serving them related ads across sites. It’s like having an ad follow you around the internet!

What types work best? Let’s dig into the data:

So which display ad types are most effective? Let’s dig into some data and case studies to find out!

Banner ads remain a staple, generating significant results. Sunshine Company achieved a 2% CTR and 50% increase in site traffic with 300×250 banner ads on niche blogs in their industry.

Video ads are engaging viewers. On YouTube, TrueTech Co.’s 1-minute product promo ads reached over 500,000 impressions and lowered cost-per-click by 35%.

Native ads are also proving successful – 63% of consumers said they felt positively about a brand after viewing native ads. Acme Co. boosted lead generation by 75% with native ads matched to look like articles on industry forums.

Monitoring and Optimising Over Time

To maximise your display ad results, be sure to continuously monitor and optimise your campaigns. Tools like Google Analytics allow you to track engagement metrics like impressions, clicks, conversions, and more.

Use this data to identify high-performing placements, audiences, and ad creatives and shift budgets to those elements. A/B test different ads and landing pages as well.

Retargeting for the Win

Retargeting (also known as remarketing) is a digital marketing technique that shows ads to website visitors after they leave your site in order to bring them back to complete desired actions. Retargeting works by using tracking pixels and cookies to identify audiences for targeted ads.

Retargeting helps you reconnect with engaged users by serving them ads across sites based on their earlier interactions.

Set up pixel tracking and tailored audience lists to remind users about products they showed interest in. Retargeting boosts conversions by displaying your ads at just the right time.

Using Display Ads to Achieve Your Awareness, Engagement and Conversion Goals

When selecting display ads, it’s important to match the ad type with your specific marketing goal:

Banner ads work well for broad brand awareness campaigns due to their wide reach. Position banners on high-traffic sites to get your brand in front of many eyeballs.

Video ads engage viewers by demonstrating your product or service in action. Use YouTube, social media, and website placements to educate potential customers.

Native ads seamlessly blend into websites and articles, making them great for lead generation. Place native ads on industry forums and niche sites to connect with targeted audiences.

Retargeting excels at driving conversions by following up with previous site visitors. Remarket to users who recently viewed specific products or pages.

How to Create Effective Display Ads That Convert

Latest average conversion rates

Follow these best practises to create winning disp. ad campaigns:

  • Captivating visuals – 86% of consumers say visuals are most important in display ads.
  • Clear call-to-action buttons – tell viewers what to do next.
  • A/B test different layouts, offers, and wording to optimise performance.
  • Ensure ads are optimised for both desktop and mobile viewing.

Display Advertising Pricing and Calculating ROI

Average CPM for display ads:

  • Banner ads: $2-$20
  • Video ads: $20-$50
  • Native ads: $10-$100

Calculate potential ROI based on conversion rates in your industry. Monitor cost metrics like CPC and CTR.

Latest ads click through rate by industry

Emerging Display Ad Trends and Innovations

Innovations like connected TV, digital billboards, 360 video, and virtual reality open new opportunities for captivating and interactive display ads.

Key Takeaways for Your Display Advertising Strategy

After reviewing the ins and outs of disp. advertising in this report, let’s summarise the key lessons to inform your strategy:

  • Align display ad types with specific marketing goals – brand awareness, engagement, conversions, etc.
  • Craft compelling creative optimised for the format – vivid images and videos, clear messaging, strong calls-to-action.
  • Leverage placements that reach your target audiences in the right context.
  • Continuously optimise campaigns based on performance data – double down on what works.
  • Explore innovative ad formats like connected TV as they emerge.
  • Calculate ROI potential to construct budgets that deliver.

By putting these strategic principles into practise, you can get the most out of your display advertising investment. The right campaign executed well will provide value across the customer journey – from awareness all the way to sales.

Jesus Guzman

M&G Speed Marketing LTD. CEO

Jesus Guzman is the CEO and founder of M&G Speed Marketing LTD, a digital marketing agency focused on rapidly growing businesses through strategies like SEO, PPC, social media, email campaigns, and website optimization. With an MBA and over 11 years of experience, Guzman combines his marketing expertise with web design skills to create captivating online experiences. His journey as an in-house SEO expert has given him insights into effective online marketing. Guzman is passionate about helping businesses achieve impressive growth through his honed skills. He has proud case studies to share and is eager to connect to take your business to the next level.