Quick answer: The main types of display advertising are banner ads, responsive display ads, retargeting ads, native ads, video display ads, and rich media ads. Each appears on websites, apps, or social feeds to build awareness and bring visitors back, and the right mix depends on your goal, audience, and creative.
Key takeaways
- Display advertising spans banner, responsive, retargeting, native, video, and rich media formats.
- Display builds awareness and re-engages visitors – it rarely captures buyers mid-search.
- Retargeting is usually the highest-converting type of display ad.
- Native and rich media blend in or interact, lifting engagement over plain banners.
- Match the format to the goal: awareness, consideration, or conversion.
What is display advertising?
Display advertising means visual ads – images, video, or interactive units – shown across websites, apps, and social platforms rather than in search results. While search ads catch people actively looking, display ads reach people while they browse, read, or scroll. That makes display brilliant for building awareness and staying top of mind, but it also means lower click-through rates than search.
The Google Display Network alone reaches millions of sites and apps, and platforms like Meta, YouTube, and programmatic exchanges add even more inventory. Knowing the different types of display advertising helps you pick formats that fit your goals instead of defaulting to a plain banner and hoping for the best.
Why do the types of display advertising matter?
Not all display ads do the same job. A static banner is great for cheap, broad awareness; a retargeting ad excels at closing visitors who almost bought; a video ad tells a story; a native ad slips into content so smoothly it barely feels like an ad. Choosing the wrong format for your goal wastes budget.
Think of it this way: the format is the tool, and your objective is the job. Below, we break down each major type with practical examples so you can match them up.
1. Banner ads
Banner ads are the classic, original display format: rectangular image ads placed in fixed slots on a webpage – top, sidebar, or in-content. They come in standard sizes like the leaderboard (728×90), medium rectangle (300×250), and skyscraper (160×600).
Best for: broad, low-cost awareness and reinforcing your brand across many sites.
Example that converts: a fitness brand runs a 300×250 banner with a bold offer (“Flat 30% off your first month”) and a clear “Join now” button on health and lifestyle blogs. Simple, but the strong offer and obvious action do the work.
The catch: banner blindness is real. People mentally tune out static rectangles, so banners need sharp design and a compelling hook to perform.
2. Responsive display ads
Responsive display ads are the modern, flexible upgrade to fixed banners. You upload several headlines, descriptions, images, and a logo, and Google automatically combines and resizes them to fit almost any ad slot – banner, square, or otherwise.
Best for: advertisers who want maximum reach with minimal design work, since one ad set adapts to thousands of placements.
Example that converts: a SaaS company uploads three headlines, two images, and its logo. Google serves the best-performing combination per placement, so the message stays consistent while the format flexes automatically.
This is often the smartest starting point for businesses new to display, and it’s a core part of how we structure campaigns in our Google Ads service.
3. Retargeting (remarketing) ads
Retargeting ads follow people who already visited your website or app but didn’t convert. Because the audience already knows you, these are typically the highest-converting type of display advertising – they nudge warm prospects back to finish what they started.
Best for: recovering abandoned carts, re-engaging visitors, and shortening the path to purchase.
Example that converts: someone browses a pair of shoes, leaves, and then sees a banner showing those exact shoes with “Still thinking it over? Get free shipping today.” That relevance and gentle urgency drive strong returns.
Retargeting works across both the display network and social platforms – our Meta Ads team uses it heavily because the cost per result is usually far lower than cold display.
4. Native ads
Native ads are designed to match the look and feel of the content around them – they appear as “recommended articles,” sponsored feed posts, or in-content suggestions. Because they blend in, they feel less like interruptions and often earn higher engagement than banners.
Best for: content-led marketing, building trust, and reaching people who ignore obvious ads.
Example that converts: a finance brand sponsors a “5 ways to save on taxes” article that appears in a publisher’s recommended-reading section, then guides readers to a free planning tool. It informs first, sells second.
The key with native is honesty – it should be clearly labelled as sponsored. Done right, it educates and converts; done sneakily, it erodes trust.
5. Video display ads
Video display ads bring motion and sound to the screen – pre-roll and mid-roll spots on YouTube, in-feed video, and out-stream video inside articles. Video is unmatched for storytelling and emotional connection.
Best for: demonstrating a product, explaining a complex service, or building brand affinity.
Example that converts: a kitchen-appliance brand runs a 15-second skippable YouTube ad showing the product solving a everyday frustration in seconds, ending with a discount code. The “show, don’t tell” approach makes the value obvious.
Keep the first few seconds gripping – most viewers can skip, so your hook has to land immediately.
6. Rich media ads
Rich media ads are interactive display units – they include elements people can engage with, like expandable panels, carousels, sliders, mini-games, or hover effects. They demand attention in a way static banners can’t.
Best for: high-impact campaigns, product launches, and engaging audiences who ignore standard formats.
Example that converts: a travel company runs an expandable banner that opens into an interactive map of destinations with prices on hover. The interactivity keeps users engaged longer and drives qualified clicks to booking pages.
Rich media costs more to produce, so it suits brands with the budget and a goal worth the investment.
Where do display ads appear?
Knowing the formats is half the picture; the other half is where they show up. Different placements suit different goals:
- The Google Display Network spans millions of websites, news sites, blogs, and apps – ideal for broad reach.
- Social platforms like Meta and Instagram serve display and video ads inside feeds and Stories, where targeting is precise.
- YouTube carries video display ads before and during content, perfect for storytelling.
- Apps and games host banners and rewarded ads, useful for mass awareness.
- Programmatic exchanges buy placements automatically across the open web in real time.
The same creative can perform very differently depending on placement, so it’s worth testing where your audience responds best rather than assuming. A retargeting banner might convert beautifully on a news site but poorly inside a mobile game – the format is right, but the context is wrong. Pairing the right format with the right placement is where display campaigns quietly win or lose.
Comparing the types of display advertising
| Type | Best goal | Typical strength | Watch out for |
|---|---|---|---|
| Banner ads | Awareness | Cheap, wide reach | Banner blindness |
| Responsive ads | Reach + efficiency | Auto-fits any slot | Less design control |
| Retargeting ads | Conversion | Highest ROI | Frequency fatigue |
| Native ads | Trust + consideration | High engagement | Must be labelled |
| Video ads | Storytelling | Emotional impact | Needs a strong hook |
| Rich media ads | High-impact campaigns | Interactive, memorable | Higher production cost |
Common display advertising mistakes to avoid
- Treating display like search. Expecting search-level click rates from display leads to disappointment.
- Ignoring retargeting. Skipping your warmest audience leaves the easiest conversions on the table.
- Weak creative. A dull banner gets ignored – design and offer matter more here than anywhere.
- No frequency cap. Showing the same ad too often annoys people and wastes spend.
- Sending clicks to a generic page. Match the landing page to the ad’s promise.
Tips for display ads that convert
- Lead with a single, clear offer and an obvious call to action.
- Use retargeting to re-engage warm visitors first.
- Test multiple creatives and let data pick the winner.
- Cap frequency so the same person isn’t overwhelmed.
- Match the format to the goal – awareness, consideration, or conversion.
Choose the right display format for your goals
There’s no single best type of display advertising – the winning approach usually blends a few formats: banners and responsive ads for reach, retargeting for conversion, and native or video to build trust along the way.
Book a free 30-minute strategy call with Market IQ Consulting. We’ll recommend the display formats that fit your goals and budget, and show you where retargeting can recover the conversions you’re currently missing – no pitch decks, no hard sell.
Frequently asked questions
What are the main types of display advertising?
The main types are banner ads, responsive display ads, retargeting ads, native ads, video display ads, and rich media ads. Each suits a different goal, from broad awareness with banners to conversion-focused retargeting that re-engages past visitors.
Which type of display ad converts best?
Retargeting ads usually convert best because they reach people who already visited your site and showed interest. Since the audience is warm, these ads typically deliver the lowest cost per conversion of any display format.
What is the difference between display ads and banner ads?
Banner ads are one type of display ad – the classic static image format in fixed slots. Display advertising is the broader category that also includes responsive, native, video, retargeting, and rich media ads.
Are display ads worth it for small businesses?
Yes, especially retargeting and responsive display, which are affordable and effective. Display builds awareness and brings back visitors who didn’t convert. For small budgets, start with retargeting since it targets your warmest, most likely-to-buy audience.
What is a native ad?
A native ad is a display ad designed to match the look and feel of the surrounding content, appearing as a sponsored article or in-feed post. Because it blends in, it earns higher engagement, but it must be clearly labelled as sponsored.
How do I make display ads that convert?
Use a single clear offer and call to action, strong visual design, and the right format for your goal. Prioritise retargeting for conversions, test multiple creatives, cap frequency, and send clicks to a landing page that matches the ad’s promise.