--- description: Through this article, we will learn about digital advertising along with its types and ways in which SMEs can use it to increase conversions and engagement. image: https://gdm-localsites-assets-gfprod.imgix.net/images/capterra/og_logo-e5a8c001ed0bd1bb922639230fcea71a.png?auto=format%2Cenhance%2Ccompress title: Display advertising and its importance for SMEs --- # What is display advertising and how can SMEs benefit from it? Canonical: https://www.capterra.in/blog/4177/what-is-display-advertising Published on 12/9/2023 | Written by Sukanya Awasthi. ![What is display advertising and how can SMEs benefit from it?](https://images.ctfassets.net/63bmaubptoky/5Oe2sj9MsWx5wVh0s7ZHsH/2cb0237e998f78e48c4cc89c86a67cef/What_is_display_advertising-IN-CA-Header.png) > Display advertising can be an effective way for businesses to increase their digital footprint. In this article, we will understand more about display advertising and its various types. Moreover, we will also take a look at how small and midsized enterprises (SMEs) can use display advertising to increase engagement with their target audience. ----- ## Article Content Display advertising can be an effective way for businesses to increase their digital footprint. In this article, we will understand more about display advertising and its various types. Moreover, we will also take a look at how small and midsized enterprises (SMEs) can use display advertising to increase engagement with their target audience.Press releases published this yearWhat is display advertising?Different types of display advertisingHow can businesses take advantage of display advertising?In conclusionThe number of internet users in India is growing. The proportion of individuals using the Internet has also possibly increased because of the growing affordability of smartphones and access to the Internet. Reaching this audience can be made possible for businesses by leveraging digital channels and using digital methods of advertisements like display advertising.In fact, businesses are already looking to increase their spending on display ads. ‘As of 2021, the expenditure on display advertising in India peaked to about US$1.6 billion. This was an 18 per cent increase from the display ad spending recorded in the previous year.’ according to a report by Statista. In this article, we will understand display advertising and how it can help SMEs reach and engage with their target audience.What is display advertising?A form of online advertising known as display advertising uses visual components, including pictures, videos, graphics, and animations to sell goods and services. These visual components are often presented as banners, sidebar advertisements, interstitial ads, or other visually appealing formats on websites, social media platforms, or mobile applications. Advertisers can utilise display advertising to possibly persuade potential clients to carry out a certain activity, such as asking for a quote or buying a product. When appropriately utilised, display advertising can be a potent tool for generating leads, managing the brand, and increasing website traffic.Different types of display advertisingIn the section above, we had a look at what is display advertising and what are display ads. In this section, we will take a look at the different types of display ads which are used for online display advertising.1. Banner ads One of the most popular kinds of display advertising is banner ads. These square or rectangular advertisements can be seen at the top, bottom, or sides of a website. Brand awareness strategies frequently include static or dynamic banner ads to attract the attention of potential customers.2. Contextual adsContextual advertisements are shown to the audience according to their user profile and web page's content. This includes who is watching the ad, where they are located, etc. Contextual advertising's main objective is to present advertisements pertinent to the users' search intent. This could increase click-through rates (CTR) and customer engagement. An example of contextual ads can be displaying cake ads on a webpage on gifting ideas. 3. Site-placed adsIn site-placed ads, the website that will host the display adverts for this sort of display advertising is selected by the advertiser or marketer. This strategy gives marketers more control over where their advertisements appear and allows them to pick websites that closely match their target market and campaign goals.4. Social media adsAs the name suggests, these ads are featured on social media websites for marketing and advertising purposes. Within the social stream, they may appear as sponsored posts, carousel advertisements, or video ads. Advertisements that are specially made for social media platforms are customised to the visual aesthetic and behaviour of the site.5. Retargeting adsRetargeting ads are also often known as remarketing ads. These advertisements are directed at website visitors who visited a website for purchase but did not convert. These ads intend to entice users to return to the website for purchase. These ads serve as a way to keep your brand in the thoughts of customers who have previously expressed interest in your business. This can be achieved by crafting an efficient and dynamic retargeting strategy and making use of retargeting software. How can businesses take advantage of display advertising?Small and mid-sized enterprises(SMEs) can possibly use online display advertising as a valuable tool to interact with their target audience and accomplish a variety of marketing goals. The following are some of the benefits of display advertising that might help SMEs with audience engagement:Increased brand awareness and visibility: By placing eye-catching advertisements on websites, social media sites, and mobile applications, display ads may help SMEs boost the visibility of their brands. A digital display advertisement may contribute to a consistent and recognisable brand image when done well and focused towards the desired demographic. As such, this digital exposure can increase brand awareness and familiarity for the users.Lead Generation: SMEs may use display advertisements to attract leads by providing incentives like webinars, discounts or marketing templates. Moreover, businesses can reach their target audience at any point in the decision-making process with the help of a well-planned digital advertising campaign.Visual Storytelling: Businesses can convey visually compelling messages and stories about their brands, goods, or services through display advertisements. You can engage your audience and give them a memorable brand experience by using eye-catching imagery and intriguing messaging. When it comes to this type of display ads, brands can be as conventional or out-of-the-box as they wish to be.Tracking results: Once the brands have launched an ad campaign, they may track clicks, pinpoint the platform where the conversion occurred, ascertain the point at which a prospect became a customer and identify the most successful campaigns. SMEs may also monitor the effectiveness of their display ad campaigns using analytics and monitoring solutions and keep track of indicators like click-through rates (CTR), conversion rates, and return on investment (ROI).In conclusionFor SMEs aiming to maximise their display advertising efforts, setting clear objectives, producing visually appealing and pertinent ad content, identifying a target audience, regularly analysing and optimising ad campaigns, and keeping up with industry trends are some of the best practices which can help businesses to make the most of display advertising. Several trends and changes can be anticipated to impact future online display advertising for businesses due to technological breakthroughs, shifting consumer patterns, and changing market norms. Businesses wanting to utilise display advertising in the following years should possibly remain flexible and responsive to these developments.Looking for display advertising software? Check out our catalogue\! ## About the author ### Sukanya Awasthi Sukanya Awasthi is a content analyst for Capterra, covering emerging technology trends with a focus on retail, construction and ERP. With an educational background in Computer Science, she brings 8 years of hands-on experience to her writing, translating intricate technical concepts into accessible and informative insights. Sukanya’s research and analysis is informed by nearly 200,000 authentic user reviews on Capterra and over 40,000 interactions between Capterra software advisors and software buyers. Sukanya also regularly analyzes market sentiment by conducting surveys of business leaders in the construction space, as well as retail leaders and consumers, so she can provide the most up-to-date and helpful information to small and midsize businesses purchasing software or services. Her work has been featured in Financial Express, Economic Times, and Bloomberg Quint, among other publications. 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