The pros and cons of display ads

Will they fit your business?

Display advertising — the banners, animated creatives, and video snippets that show up across websites, apps, and publisher networks — is one of the oldest and most flexible channels in digital marketing. But it also attracts more debate than ever: are display ads a smart use of marketing budget in 2025, or relics that eat impressions without delivering value?

This guide breaks the topic down pragmatically. We’ll explain what display does well, where it struggles, which businesses should use it (and how), and what practical trade-offs to expect. Where I cite industry numbers and guidance, you’ll find the original sources at the end.

What we mean by “display ads”

Display ads are visual ad units delivered across the open web, inside apps, or on publisher-owned properties. They include single-frame image banners (PNG/JPG/WebP), looping GIFs, HTML5 rich media, responsive display creatives (assembled by platforms), and short autoplay video ads. Display campaigns can be bought directly, via networks, or — increasingly — programmatically through real-time bidding on exchanges and DSPs.

When we talk about the pros and cons of display, keep in mind that the term covers a range of formats and buying methods — and the differences matter for performance.

The big advantages of display ads

1) Reach and scale

Display reaches people where search and social might not. Banner inventory spans millions of websites and apps; programmatic systems stitch this supply together so advertisers can reach large audiences quickly. If your objective is awareness, broad visibility and consistent presence across many sites make display an obvious option. Programmatic buying now accounts for the vast majority of display spend, which makes scaling a lot easier than in the past. (EMARKETER)

2) Visual storytelling and creative variety

Display lets you use imagery, typography, motion, and video — tools that search and text ads can’t match. That visual canvas is invaluable for product-led messages, creative branding, and testing different visual hooks. HTML5 creatives and short-form video, in particular, allow interactive or attention-grabbing treatments that can raise brand recall.

3) Good for multi-stage funnels

Display shines across the funnel. It’s useful for upper-funnel exposure (brand), mid-funnel consideration (dynamic creative showing products), and bottom-funnel retargeting (reminding recent visitors). Because you can tailor formats and messages to audience segments, display easily supports sequential storytelling. Platforms also let you layer frequency caps and audience logic to limit waste.

4) Flexible buying and inventory options

From direct publisher buys to private marketplaces and open exchanges, display offers many buying styles — each with different pricing and control. If you value brand-safety and premium inventory, programmatic direct and PMP deals are viable. If you want cost-efficient reach, open-exchange buys provide scale.

The major disadvantages and risks

1) Lower direct conversion rates (vs search)

Unlike intent-driven search ads, display is usually discovery-oriented. Converting directly from a banner often requires a great landing page, a tight offer, or subsequent touchpoints — which means display alone tends to show lower direct conversion rates than search. Businesses focused only on immediate direct conversions may find other channels more efficient. (LOCALiQ)

2) Ad blockers and reduced addressable audience

Ad blocking remains a significant real-world constraint. Large swathes of users opt for ad blockers on desktop and increasingly on mobile, which means a non-trivial share of potential impressions never reach their target. In absolute numbers, hundreds of millions of users block ads globally — a variable you must consider when estimating reach. (Backlinko, Exploding Topics)

3) Viewability and attention challenges

Not every served impression is actually “viewed” by a human. Industry viewability standards exist (for example, minimum pixel-in-view and duration thresholds), but low viewability has historically been a problem in programmatic display. That means you can pay for impressions that never had a real chance to make an impact unless you optimize for viewability or buy premium placements. New attention-measurement frameworks are helping, but it’s still a measurement discipline marketers must invest in. (IAB)

4) Reporting complexity and fragmented measurement

Display often spans many platforms, vendors, and attribution windows. Without an attribution plan that accounts for assisted conversions, view-throughs, and incremental lift, teams can misunderstand the channel’s contribution. That complexity matters: treat display as part of a cross-channel ecosystem rather than an isolated conversion-driver. (IAB)

5) Privacy & data shifts

The post-cookie era and privacy regulations have reshaped addressability. Third-party identifiers are less reliable; publishers and tech vendors are evolving with privacy-preserving signals and first-party data strategies. This transition increases the importance of first-party data, contextual targeting, and consented audiences — but it also raises the barrier to entry for advertisers without robust data assets. (IAB, EMARKETER)

How to decide whether display ads will fit your business

Not every business benefits equally from display. Here’s a practical decision checklist:

1) What’s your primary objective?

• If you need instant search-driven conversions, search advertising is the better fit.
  
• If you want awareness, consideration, or retargeting, display is a strong option. Match the channel to the KPI.
  

2) What’s your creative capability?

High-quality visuals, short video, or HTML5 interactivity materially improve results. If your team can produce compelling creative at scale — or you can budget for it — display’s ROI profile improves.

3) Do you have tracking and measurement in place?

If you can’t measure viewability, on-site behavior after click, or assisted conversions, you’ll struggle to judge display performance objectively. Good tagging, analytics, and an attribution approach are non-negotiable.

4) What inventory suits your brand?

If brand safety and premium placement are important, plan on direct or PMP buys. If you are chasing cost-effective reach, open exchange buys might work but demand tighter QA and verification.

5) Can you leverage first-party data?

Retailers, subscription services, and platforms with logged-in users can make display more effective by leveraging owned audiences. If you have CRM lists, email subscribers, or logged-in users, you can reduce reliance on third-party identifiers and improve targeting precision. (IAB)

How to maximize the pros and mitigate the cons

If you decide to use display, follow these practical rules that shift the odds toward success.

1) Treat creative as the primary investment

A weak banner will underperform regardless of targeting. Invest in crisp art direction, short messaging, and a clear CTA. Test motion and static variants — well-executed motion (HTML5 or short video) often improves attention and recall.

2) Prioritize viewability and quality inventory

Pay for placements that have a strong chance of being seen. Use viewability-based buys or premium PMPs for key campaigns. Tools from verification vendors can help filter low-quality inventory.

3) Use layered measurement

Combine viewable-impression metrics, post-click behavior, assisted conversions, and controlled lift tests (geo- or audience-holdouts) to understand true business impact. Single metrics like CTR understate display’s value.

4) Embrace first-party and contextual targeting

Build first-party audiences and pair them with contextual signals where privacy constraints limit identifiers. Contextual targeting has advanced significantly and can deliver relevance without relying on cross-site tracking. (IAB, EMARKETER)

5) Make the funnel explicit

Use display for the goals it does best — awareness and retargeting — and pair it with search, email, or social for conversion. A combined approach reduces wasted spend and multiplies the channel’s effectiveness.

Cost considerations and pricing models

Display buys come in different payment fashions: CPM (cost per thousand impressions), CPC (cost per click), CPA (cost per acquisition), and hybrid models. CPM remains the default for many awareness or programmatic deals, but performance buyers increasingly use CPA or viewable-CPM structures to align spend with outcomes.

Keep in mind that CPMs vary greatly by inventory quality and geography — premium publisher placements command higher CPMs but can deliver better outcomes; bargain inventory is cheap but often less viewable and less brand-safe. Adjust your bid strategy to the placement’s role in the funnel.

Common myths — and the simple realities

Myth: “Display is dead.”

Reality: Display still moves metrics for awareness and retargeting when used correctly. It’s not a one-size-fits-all conversion channel, but it’s far from obsolete. (EMARKETER)

Myth: “If CTR is low, display failed.”

Reality: Low CTR is typical for many display placements. View-through and assisted-conversion measurement often reveal the real contribution. Use lift tests to capture indirect impact. (IAB)

Myth: “Ad blockers make display pointless.”

Reality: Ad blocking reduces addressable audience, especially on desktop, but many users remain reachable via non-blocked inventory (mobile apps, logged-in publisher experiences, server-side ad injections, or Acceptable Ads solutions). It’s not a full stop — it’s a factor to plan around. (Backlinko, blockthrough.com)

Final verdict: who should use display — and how

Display advertising still belongs in most modern media mixes — but with clear caveats. Use it if:

• You need broad awareness or brand presence.
  
• You have strong creative capability or a budget to produce quality assets.
  
• You can measure beyond clicks and align display to a cross-channel funnel.
  
• You can buy premium or curated inventory when brand safety and viewability matter.
  

Avoid leaning on display as your sole conversion engine if you don’t have the measurement, creative, or funnel support to make it work. For resource-strapped businesses focused only on immediate sales, search or performance-first channels may be more efficient.

When you decide to run display, invest in creative, measure comprehensively, and buy inventory with an eye toward viewability and context. Execute with discipline and display will be a dependable amplifier for your marketing goals.

Sources & further reading

• IAB — State of Data 2024: How the digital ad industry is adapting to a privacy-first ecosystem. (IAB)
  
• eMarketer / Insider Intelligence — Programmatic display spending and forecasts. (EMARKETER)
  
• Google Ads Help — Overview and benefits of Display campaigns (reach, formats, goals). (Google Help)
  
• Backlinko / ad-blocking reports — Recent ad blocker usage statistics and impact. (Backlinko)
  
• IAB — Attention Measurement Explainer (August 2024) — guidance on viewability and attention metrics. (IAB)
  
• Blockthrough / Eyeo — industry reports on ad filtering and ad-block trends. (blockthrough.com, resources.eyeo.com)