In 2024, global ad spending is projected to reach $740.3 billion, and brands are increasingly weighing the benefits of display ads vs. video ads. Video advertising alone is set to hit $337.5 billion, while programmatic display ads are following closely, already reaching $207.4 billion in 2023. Major digital platforms like Google and YouTube make it easy to run both types of campaigns from a single platform. But the question remains — which format will help your brand better achieve its goals: display ads or video ads?
Display Ads: Enhancing Visibility to Audiences
The global display advertising market is projected to reach US$292.7 billion by 2026, which explains why advertisers are eager to enter this market. Let’s break down display ads in simple terms:
What Are Display Ads?
Display ads are digital advertisements that use text, images, or animations to promote your brand across websites, apps, and more. With platforms like Google, your display ads can reach millions of sites, apps, and even YouTube, ensuring they appear in front of your target audience.
By utilizing programmatic media buying, you can ensure that your digital display ads appear on related websites to your brand while only paying for engaged audiences within the scope of your target market.
These are the common formats and types of display ads:
- Static ads: Single images or text designed to promote the brand directly.
- Animated ads: Looping GIFs or image sequences that add motion to catch attention.
- Interactive ads: Ads that respond to user actions, like mouse movements, offering a more engaging experience.
Screenshot from Google Ads
These digital display advertising formats can appear in various placements, including:
- Pop-up ads: Small windows that overlay a webpage, either triggered by user actions or set to appear after a specific time.
- Overlay ads: Ads that appear over the main content but don’t cover the entire screen.
- Banner ads: Familiar rectangular or square ads located at the top, bottom, or along the sides of a webpage.
Key Benefits of Display Ads
Here are some key advantages to note when advertising on display networks of major platforms:
Lower CPM for Brand Awareness
Display ad campaigns offer lower cost-per-mille (CPM) than other formats, making them an efficient option for building brand awareness. For instance, Google Display Ads average a CPM of around $3.12, though this varies by industry. This is significantly lower than the typical CPM for YouTube video ads, which ranges from $5.70 to $12.36 for non-skippable ads — commonly used for awareness campaigns. This cost efficiency makes display ads a solid choice for long-term visibility at scale.
Constant Brand Exposure
Whether potential customers are browsing news sites, blogs, or shopping platforms, your brand remains in sight, reinforcing brand awareness over time. With the right media buying strategies, such as keyword and audience targeting, you can make sure that there is no wasted ad spend whenever your brand’s display ads are shown online.
Widespread Availability Across Platforms
Targeted display ads offer expansive reach, allowing you to place ads on a vast network of websites and apps without managing multiple campaigns across different platforms. For example, Google’s Display Network gives you access to over 35 million websites and apps, including Google-owned properties like YouTube and Gmail — all from a single campaign. This widespread availability maximizes your brand’s exposure with minimal management overhead.
Common Use Cases for Display Ads
- Retargeting: Beyond awareness, display campaigns excel in retargeting. They follow users who have previously interacted with your brand as they browse the web, serving as reminders to return and complete a purchase or take another desired action. This keeps your brand top of mind and can significantly improve conversion rates.
- Lead Generation: By targeting specific demographics or interest-based audiences, businesses can use display ads to drive traffic to landing pages or forms where users can submit their information in exchange for offers like ebooks, newsletters, or free trials. Paired with compelling calls-to-action, display ads can help brands build contact lists and generate valuable leads for nurturing and conversion.
Video Ads: Engaging Users for Brand Recall
Video ads began with traditional TV commercials, but with the rise of mobile video apps and platforms like YouTube, they’ve evolved into a dominant format for digital advertising. Today, brands can easily reach audiences on their mobile devices through platforms like TikTok, Meta’s Reels, and YouTube Shorts, specializing in short-form vertical videos.
Each platform offers unique opportunities for brands to engage audiences and drive brand recall. Many brands partner with established ecommerce video agencies to maximize the potential of these platforms, creating engaging video content that captures attention, strengthens brand recall, and drives conversions.
What Are Video Ads?
Video advertising is exactly what it sounds like — advertisements in video format. These ads can tell your brand’s story in engaging and memorable ways, whether through humor, relatability, or clear, concise messaging. A prime example is the video advertising that occurs in breaks during the Super Bowl — a peak retail advertising season where the best video ads from major brands compete for the top spots and key moments during the game.
Source: YouTube AdBlitz
In social media advertising, various video ad formats can be used for different campaign objectives:
- Bumper ads: These are 6-second ads that quickly appear on the screen and are non-skippable, shown before the YouTube video you selected.
- In-stream ads: When playing a video on YouTube, ads appear before, during, or after your selected video content. These ads play while you are streaming the video on the platform.
- Non-skippable in-stream video ads: These ads must be watched in full and typically last between 15 and 30 seconds. They are mostly used in CTV advertising for reach campaigns on YouTube.
- Skippable in-stream video ads: These are longer ads on YouTube that audiences can skip after 5 seconds.
- In-feed ads: These ads automatically play while browsing through your social media feed and may appear alongside related content or searches.
- Shorts ads: Exclusive to YouTube, Shorts ads appear on the Shorts feed between short-form video ads from other creators on the platform. Users can watch them like a Shorts video or swipe them away.
- Outstream ads: These video campaigns operate similarly to the previous ones on the list but are distributed outside the host platform. For example, if you primarily advertise on YouTube but want to extend your reach, you can choose to have your video ads shown within the Google Display Network as well.
Key Benefits of Video Ads
Running ads on YouTube and other video advertising platforms provides numerous advantages that can significantly enhance your advertising strategy. Here are some key benefits to consider:
High Engagement
The dynamic combination of motion, sound, and visual storytelling creates an immersive experience that static display ads often can’t match. Platforms like YouTube, Instagram, and TikTok, where users are accustomed to video content, see exceptionally high engagement rates. For instance, during high-profile events such as the U.S. election, view rates for video ads can exceed 60%, as audiences actively enjoy and engage with ad breaks.
Explaining Complex Concepts
One of the most significant advantages of video ads is their ability to break down complex ideas or products into digestible, easy-to-understand content. You can create a series of episodes using video ads like an anthology series or just do straightforward ones that tell the message right away. This can range from compiling UGC from brand ambassadors or an intricate story crafted by your marketing team to effectively promote your current promotions.
Impact Across the Funnel
Video ads are highly versatile and can be used effectively at different stages of the marketing funnel:
- Awareness: Connected TV (CTV) ads are transforming brand visibility, reaching over 90% of U.S. households equipped with smart TVs and streaming services. By showcasing your video campaigns here, you can create memorable first impressions with a wide audience.
- Consideration: TikTok is particularly effective for driving consideration. The trending hashtag #TikTokMadeMeBuyIt illustrates how content creators can partner with brands, effectively turning their authentic experiences into compelling video promotions. Notably, positive reviews influence 82% of users’ purchasing decisions, underscoring the impact of video content on this platform.
- Conversion: With clear calls to action, limited-time offers, or detailed explanations of how your product addresses a specific problem, your video ads can encourage viewers to take action and drive conversions. For example, consider this Monday.com ad, which directs viewers to a landing page to sign up by presenting a clear CTA within less than a minute of YouTube ad time.
Source: Google Ads Transparency Center
Common Use Cases for Video Ads
- Brand Recall and Engagement: Catchy jingles or striking one-liners in video ads boost brand recall, making it easier for viewers to remember your brand long after the ad has ended. By visually representing your brand, you create a lasting impression that resonates with your audience.
- Product Demos and Storytelling: Video ads excel at showcasing the unique features and benefits of your products in ways that static images or text cannot. For instance, you can create a demo video that illustrates how your advertising technology works or share a heartfelt story, such as a father and son bonding over a delicious burger at your restaurant. These narratives not only inform but also connect emotionally with viewers.
- Launching New Products: Through visually compelling video campaigns on Reels or Shorts, brands can introduce new products to the market in a way that captivates audiences and generates interest with a teaser campaign or a new product line reveal.
Display Ads vs. Video Ads: Key Differences
While both these digital and social media advertising types offer benefits, they each have strengths and limitations. Both serve unique roles in digital marketing, but they differ in several factors. Here’s a detailed comparison to assist you in selecting the right ad type for your campaign objectives:
Combining Display and Video Ads for Maximum Impact
Each ad format offers distinct advantages, and when used together, display and video ads can create a high-impact marketing strategy that boosts visibility, engagement, and conversions. Here’s how brands can leverage both formats for the best results:
- By combining display and video ads, brands can maintain a continuous presence across multiple platforms. Video ads capture attention through dynamic storytelling, while display ads serve as visual reminders that reinforce brand messaging.
- While video ads often generate higher engagement due to their multimedia elements, display ads provide an opportunity to offer additional details or direct calls-to-action. After capturing the viewer’s attention with a video ad, a follow-up display ad can guide them toward the next step — whether that’s learning more or making a purchase.
- Audiences vary in how they consume content. Some may prefer immersive video experiences, while others may respond more favorably to static images or banners. By using both display and video ads, brands can cater to different preferences, increasing the chances of reaching a broader audience and converting more potential customers.
- By using both formats, marketers can collect a wealth of data on user behavior and preferences. Tracking interactions with both video and display ads allows for more informed decisions on future campaigns. You can determine which format resonates more with your audience, fine-tune your messaging, and optimize ad spending accordingly.
Conclusion
Both display and video ads offer unique strengths and cater to different marketing objectives. Display ads provide a cost-effective way to maintain consistent brand exposure across the web, offering quick and easy access to information through visual reminders. On the other hand, video ads excel in driving engagement, storytelling, and explaining complex concepts, making them highly effective across various stages of the marketing funnel.
When deciding between the two, it’s important for brands to consider campaign objectives, audience preferences, and available resources. Whether you choose to focus on one format or combine both, aligning them with your goals and budget is key. Ultimately, using both display and video ads together creates a balanced strategy, ensuring your brand remains visible, relevant, and effective in capturing a wider audience and driving them toward meaningful action.
