What are display ads 

Display ads or ad type is a form of online advertising in which ads in the form of banners, with a series of images, text, video or audio representing the display, are displayed on landing web pages, usually represented at the top or side of them.

Although this advertising format can be contracted out directly, the most common is that it is done through intermediaries. In this sense, in display advertising there are three main actors, affiliate platforms such as Google Ads that act as intermediaries between interested parties. These are responsible for managing the percentage change in earnings and allow advertisers to more easily manage the process of selecting the websites they advertise on. Finally, we find advertisers and webmasters, who provide advertising space on their websites and blogs.

As for the payment forms, there are four variations on display ads. The choice between one of them depends on the advertiser and the goals of the campaign. Payment models for display ads are:

- Fixed price: It is a fixed amount that can be daily, weekly or monthly agreed upon by the two parties (the advertiser and the site manager), and it is independent of the results. This option is not available on platforms such as Google Ads.

Action cost: In this mode, the advertiser only pays when the user performs a specific action, such as buying a product or ordering a trial. This is a complicated option, but it can be very profitable.

-Cost Per Click (CPC): In this mode, you pay only when the user clicks on the ad.

Cost Per Thousand Impressions (CPM): It is usually, along with CPC, the most popular form on platforms such as Google Ads. The advertiser pays an agreed amount each time the ad appears 1000 times on the platform.

What are the advantages of display ads?

The first is that the results are very easy to measure, as you can easily control basic metrics like impressions, how often they are viewed, click-through rate, etc. In this way, it is very easy to optimize ads to improve performance, run tests and A/B tests.

On the other hand, it is possible to segment the campaigns so that they are shown to the target audience, achieving much higher performance. In addition, this type of advertising has a great visual impact, although users have already learned to distinguish between a banner and real content, so it is also possible, if it is not really attractive, that the ad may go unnoticed.

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