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Google Display Ads: Benefits and Costs Explained from Google Partner Agency

Quick Answer: Google display ads are visual advertisements that appear across Google’s Display Network, including websites, apps, YouTube and Gmail. Unlike Google Search Ads, which appear when users actively search for specific products or services, Display Ads help businesses reach potential customers while they’re browsing online.

What Are Google Display Ads
  • Google Ads Resources

Kunjal Shah

SEO Expert GEO Expert Marketing Expert

Quick Answer: Google display ads are visual advertisements that appear across Google’s Display Network, including websites, apps, YouTube and Gmail. Unlike Google Search Ads, which appear when users actively search for specific products or services, Display Ads help businesses reach potential customers while they’re browsing online.

If you’re a marketer, advertiser, or a business owner, check out this blog post to understand what Google Display Ads are, how and when they are helpful, and how you can leverage their potential for your business goals.

Before we move any further, let’s consider this scenario:

Imagine you’re looking for new office furniture. Somehow you searched for the furniture, but didn’t buy it. Later, while browsing another website, you see a visual ad from the same brand offering 20% off your purchase. But this time, you click the ad, return to the website, and complete the purchase, and this is how Google Display Ads work.

What Are Google Display Ads?

So, what are Google Display Ads? These are visual ads that appear across websites, apps, YouTube, Gmail, and more platforms when surfing online.

Unlike search ads, the user isn’t actively searching for your products/services at that exact moment.

If you’re new to this, the idea is pretty simple. You’re not waiting for someone to type a query that matches what you sell. Instead, you’re showing up while they’re reading an article, checking an app, watching a video, or simply browsing online.

That’s why Google Display Ads are best known for building awareness, reaching new audiences, and bringing back people who once already showed interest in your business.

How To Set Up a Google Display Ad Campaign?

Setting up a Google Display Ads Campaign is fairly straightforward once you know where to find the right settings. Here’s a simple step-by-step process to set up a Google Display Ad Campaign:

Step 1: Sign in to Google Ads: Sign in to your Google Ads account and click “New Campaign” to get started.

Step 2: Choose your Campaign Objective: Choose the objective you want to achieve through this ad. It could be anything between leads, sales, awareness, or reach.

Check out the scenarios below to understand how to determine your display ad objective:

Sales: Choose sales when your main goal is to get people to buy something. This works well for an e-commerce business, online stores, and businesses that want to drive purchases through their websites or apps.

To understand how it can help, let’s understand it by the means of an example: Suppose you run an e-commerce online store; you can make use of Google Display Ads to promote its new collection and encourage people to complete a purchase.

Leads: Choosing a leads objective can be fruitful when you want potential customers to contact your business or submit their details.

This can include anything from filling out the form, requesting a quote, booking a consultation, or making an enquiry. Let’s take the example of a dental clinic, which can encourage patients to book an appointment using Google display ads.

Website Traffic: Choose website traffic when you want to bring more visitors to your website. This can be useful when you’re trying to introduce people to your products, services, blogs, or other website content.

Take, for instance, a travel company that can lock in more clients by featuring its package page on Google’s Display Ads.

Brand Awareness and Reach: This is one of the most widely used use cases for Google Display Ads. With this, you can make your brand more visible to customers, so they can recognise it and share it with their friends and family.

It can be useful for many purposes, including product launches, events, or simple awareness campaigns.

App Promotion: Another use case for display ads is app promotion. They’re widely used to promote new apps and showcase their features to a broad audience. This targets a wider audience, thereby increasing the number of app downloads.

Step 3: Select “Display” as your Campaign Type

Once you’ve chosen your campaign objective, the next step is to select Display as your campaign type. This tells Google Ads that you want your ads to appear across the Google Display Network, including websites, apps, YouTube, and Gmail.

After selecting Display, you will walk through campaign settings, where you can choose your target audience, budget, bidding strategy, locations, and ad creatives.

Step 4: Define your “Target Audience”

In the next step, decide who you want your ads to reach. Google Display Ads offers several ways to narrow your audience, so your ads are more likely to reach people who may be interested in the products or services you offer.

You can target people based on:

State the demographics: Here come all the factors such as age, gender, parental status, and household income.

Interests and habits: Reach people based on their interests, hobbies, and browsing behaviour.

In-market audiences: Target people who are actively researching or considering products or services similar to yours.

Your data segments: Show ads to people who have already interacted with your business, such as previous website visitors.

Determine keywords and topics: Choose keywords or topics related to your business to help Google find relevant content where your ads can appear.

Ensure Placements: Select specific websites, YouTube channels, apps, or other locations where you want your ads to appear.

Step 5: Create Your Display Ads

Now it’s time to create the actual ad that people will see while browsing websites, apps, YouTube, or Gmail. Your ad should be visually appealing and clearly communicate what you’re offering.

Depending on the format you choose, you may need to add:

Images: Use clear, high-quality images that represent your products or services

Logo: Add your business logo so people can easily recognize your brand.

Headlines: Always keep the headlines short and attention-grabbing

Descriptions: Explain your offer or USPs in a few catchy words

Call-To-Action: Tell people what you want them to do, including “Shop Now”, “Learn More”, or “Get a Quote”.

Step 6: Google Places Your Ads Across Its Display Network

Once your campaign goes live, Google handles the placement for you, spreading your ads across a huge range of spots:

  • Websites: Millions of partner sites across the web, from niche blogs to major news outlets.
  • Apps: Mobile apps are opened dozens of times a day, so your brand shows up mid-scroll or mid-game.
  • YouTube: Placed alongside videos your audience is already watching.
  • Gmail: Sitting right in the Promotions or Social tab, next to emails people are already sorting through.
  • Other Google properties: A few additional Google-owned spaces that round out your reach.

Step 7: Users See and Interact With Your Ads

Here’s what actually happens once real people start seeing your ads:

  • Impressions: Every time your ad loads on someone’s screen, it counts as an impression.
  • Clicks: Someone’s curious enough to tap through and see more.
  • Engagement: For video or interactive formats, this covers things like hovering over an ad or watching a few seconds of it.
  • Conversions: The moment someone actually does what you wanted: buys, signs up, books a call.

Step 8: Measure and Optimize Campaign Performance

Once the campaign has had some time to run, these are the numbers worth watching:

  • CTR: How often people click after seeing your ad; a quick read on whether it’s grabbing attention.
  • Impressions: Your overall visibility, regardless of clicks.
  • Reach: Unique people reached, not just total views.
  • Conversions: How many people followed through with the action that matters to you.
  • CPA: What you’re paying, on average, for each conversion.
  • Conversion value: The actual dollar value those conversions brought .
  • ROAS: Revenue earned per dollar spent; the number that tells you if the campaign’s actually paying off.

For more insights, explore our Google Ads Guide to learn about campaigns, strategies, costs, and optimization.

What Are the Different Types of Google Display Ads?

Responsive Display Ads

Upload a few headlines, some descriptions, your logo, a handful of images; Google takes it from there. It automatically resizes and reshuffles the pieces to fit whatever ad slot is available on a given site. No design skills required, which is exactly why most beginners start here.

Uploaded Image Ads

Full creative control, no algorithm involved. You design the ad exactly how you want it and upload it in the required sizes yourself. Better suited for brands that already have a look they need to stick to.

Banner Ads

Static or animated, sitting along the top or side of a page. Nothing flashy about the format itself, but it’s been around forever for a reason: it works, and it’s cheap to produce.

Remarketing Display Ads

Someone visited your site, poked around, maybe added something to a cart, then left. These ads chase them across the web afterward with a reminder to come back.

One of the highest-converting formats simply because you’re talking to people who already showed interest.

Interactive and Rich Media Ads

Carousels, expandable banners, embedded video: anything that invites a person to actually do something with the ad instead of just looking at it. Takes more work to build, but it tends to hold attention longer than a plain image ever could .

What Are the Benefits of Google Display Ads?

Reach a Wider Audience

Millions of sites, thousands of apps, YouTube, Gmail; the Display Network covers a lot more ground than search ever will. If your audience is online anywhere, there’s a good chance they’ll come across your ad.

Build Brand Awareness

Nobody converts off the first ad they see. But they remember it. With enough repeated exposure, your brand becomes familiar, and familiar brands are the ones people actually buy from later.

Reach Customers Before They Search

Search ads only catch people mid-hunt. Display gets there earlier, showing up based on someone’s interests or browsing habits, before they’ve typed a single word into Google.

Use Visual Storytelling

Some things just don’t land in text. A good image or video can communicate a product’s whole vibe in a couple of seconds, which is where display has a real edge over plain search copy.

Retarget Previous Website Visitors

Most people don’t buy on their first visit; that’s just how browsing works. Retargeting keeps your brand in front of them anyway, so when they’re finally ready, you’re the name they remember.

Support Different Stages of the Marketing Funnel

Run one campaign to introduce your brand to people who’ve never heard of it. Run another aimed at people who already looked at your product and just need a push. Display can do both at once, which search alone can’t really pull off.

Complement Your Search Advertising Campaigns

Search catches intent. Display builds the recognition that makes someone click your ad rather than a competitor’s when they finally search. Run them together, and each one makes the other work harder.

Scale Your Advertising Reach

Because the network’s already massive, growing a campaign doesn’t mean starting over; it’s mostly a matter of loosening the targeting or raising the budget and letting Google do the rest.

Google Display Ads vs Google Search Ads

How Search Ads Work

Someone types a query into Google, and your ad shows up right there in the results: Google search ads are text-based, tied directly to what they searched for. It’s intent-driven advertising in its purest form: the person is already looking; you’re just making sure they find you first.

How Display Ads Work

No search box involved here. Google places your ad based on who someone is and what they’re browsing: their interests, the sites they visit, pages they’ve looked at before. It’s less about catching a query and more about showing up in the right place at the right moment, even before someone’s actively looking.

Key Differences Between Search and Display Ads

Search is text, intent, and immediacy; someone’s already decided they want something. Display is visual, broader, and works earlier in the process, often before a person even knows they need what you’re selling. One catches demand; the other builds it.

When Should You Use Search Ads?

Anytime someone’s close to making a decision. If people are actively typing in queries related to what you offer, comparing options, ready to buy, or looking for a solution right now, search is where you want to be.

When Should You Use Display Ads?

Earlier in the game, mostly. Use it when you want to get in front of people before they start actively searching, or when you’re trying to stay visible to people who’ve already interacted with your brand once but haven’t come back yet.

Can You Use Search and Display Ads Together?

Yes, and honestly, that’s usually the smarter play. Display builds familiarity; search closes the deal. Run them side by side, and each one ends up doing a bit of the other’s job better.

Who Should Use Google Display Ads?

Ecommerce Businesses

Product images, seasonal promos, abandoned cart reminders, and display ads are practically built for online stores. Visual formats let you show the product rather than just describe it.

Local Businesses

A coffee shop, a gym, a repair service: display ads help these businesses stay visible to nearby people, even if they aren’t actively searching that day.

SaaS and Technology Companies

Longer sales cycles mean people need multiple touchpoints before they convert. Display ads help SaaS companies stay in front of prospects throughout the entire research phase, not just at the final decision stage.

Real Estate Businesses

Listings practically demand visuals; a photo of a property does more work than any headline could. Display ads let agents and agencies put those images directly in front of house-hunters.

Healthcare Businesses

Clinics, dental practices, wellness providers: these businesses can use display to build trust and awareness locally, especially for services people don’t think about until they suddenly need them.

Education and Training Businesses

Course enrollments, certification programs, online schools: display ads are useful for reaching people early, before they’ve settled on which program or provider they’ll actually go with.

Travel and Hospitality Businesses

Destinations, hotels, packages; travel is a visual decision as much as anything else. Display ads let these businesses show, not just tell, why someone should book.

B2B Companies

Slower buying cycles, more decision-makers involved; display ads help B2B brands stay visible throughout that longer process, keeping the brand familiar by the time a real conversation starts.

Businesses Launching a New Product or Service

Nobody’s searching for something that doesn’t exist yet in their mind. Display ads let you introduce something new to people before they know to look for it.

Google Display Ads Targeting Options

Demographic Targeting

Age, gender, parental status, household income: the basics, but still useful for narrowing down who actually sees your ad.

Affinity Audiences

People are grouped by lifestyle and interests, fitness enthusiasts, foodies, tech lovers, based on their long-term browsing habits, not just a single search.

In-Market Audiences

These are people actively comparing options right now, close to a purchase decision, even if they haven’t landed on your site yet.

Your Data and Remarketing Audiences

Anyone who’s already interacted with your business, visited your site, used your app, or shown up on your customer list can be targeted again here.

Contextual Targeting

Instead of targeting people directly, this targets the content itself, showing your ad on pages related to specific keywords or topics relevant to your business.

Placement Targeting

Pick the exact websites, apps, or YouTube channels you want your ad to show up , rather than leaving it entirely up to Google’s algorithm.

Custom Audience Segments

Build your own audience from scratch based on specific interests, behaviors, or even the kinds of apps and sites people use, which is useful when the pre-built categories don’t quite match who you’re .

What Is Remarketing in Google Display Ads?

How Display Remarketing Works

Google drops a tracking tag on your site, and once someone visits, they get added to a list. From there, your ads follow them around the web, across other sites, apps, and YouTube, wherever the network reaches, reminding them of whatever they looked at before they left.

Website Visitor Remarketing

The broadest version of remarketing. Anyone who’s been to your site gets shown ads afterward, regardless of what specific page they landed . Simple but effective for keeping your brand in the back of their minds.

Product and Service Remarketing

More targeted than general visitor remarketing. If someone viewed a specific product or service page, they would see ads for that exact item afterward, not just a generic reminder that your business exists.

How Google Display Ad Pricing Works

There’s no fixed rate here either; Display runs on the same auction system as Search, just with pricing that looks very different once you dig into the numbers.

Since Display is priced mostly on impressions rather than clicks, costs stay noticeably lower than Search, and Indian CPCs tend to run 70-85% lower than US averages across the board, including Display.

Where your ad lands on the price scale still depends on industry, targeting, and how tightly you’ve set up your bidding.

CPC vs CPM vs CPA

  • CPC: You pay per click, which suits campaigns built around driving traffic. In India, Search CPC typically runs ₹20-150 (roughly ₹20-₹152), but Display CPC sits well below
  • CPM: You pay per thousand impressions, better suited for visibility and brand-awareness plays.

Indian Display campaigns average around ₹50 CPM (about ₹51), a fraction of the roughly ₹42 average Display CPM seen globally, and far below the cost of similar visibility through Search.

  • CPA: You pay for actual conversions, which is what most businesses care about once they move past pure traffic or awareness goals.

CPA in India varies sharply by sector; jewelry and accessories campaigns tend to see CPAs around ₹1,000-1,500 (roughly ₹1,007-₹1,515), while electronics can run ₹2,000-3,000 (about ₹2,014-₹3,069) given how long people take to decide on a purchase in that category.

Factors That Affect Display Advertising Costs in India

  • Industry: The spread is enormous. Overall Search CPC in India ranges roughly ₹8-25 (₹8-₹25), but Display runs even lower since it’s impression-priced; expect your effective cost-per-click equivalent to sit well under ₹10 (about ₹10) in most categories, with finance and insurance still landing at the pricier end even on Display.
  • Audience: Broad awareness targeting on Display keeps CPMs close to that ₹50 (₹51) average.

Narrow down to a specific in-market or custom audience, and costs climb since Google’s serving your ad to a smaller, more competitive pool.

  • Location: Metro markets cost more than those in smaller cities. CPCs on high-intent keywords in major cities run 40-70% higher than Tier 2 city equivalents for the same search. Display sees a similar, if less extreme, gap between metro and non-metro placements.
  • Campaign objective: A Display campaign built for pure brand recall usually costs less per impression than one optimized toward conversions, since Google factors in the higher-value action you’re asking the algorithm to chase.
  • Targeting: Broad, automated targeting keeps CPMs closer to the ₹50 (₹51) average. Layering in specific placements, custom segments, or in-market audiences narrows the pool and usually increases cost.
  • Ad quality: Higher relevance and better-performing creative earn lower costs from Google, not just better placement; a well-optimized Display ad often beats a poorly targeted one on cost per result, even with the same budget.
  • Bidding strategy: Manual CPC bidding gives more control but demands closer monitoring. Automated strategies like Target CPA or Maximize Conversions tend to become more efficient once they’ve had time to learn. As with Search, Google Ads pricing is ultimately determined by Ad Rank, a combination of your bid and Quality Score, so a strong Quality Score can offset a lower bid either way.

Common Google Display Ads Mistakes to Avoid

Targeting Too Broadly

Trying to reach everyone usually means reaching no one effectively. Narrow it down, or the budget gets burned on people who were never going to convert anyway.

Using Low-Quality Creatives

A pixelated image or a cluttered layout undercuts even the best offer. People judge an ad’s credibility in about a second.

Ignoring Mobile Users

Most display traffic is mobile these days. An ad that only looks good on desktop is quietly losing a big chunk of its audience.

Sending All Traffic to the Homepage

If the ad’s about a specific product, send people to that product page, not a homepage where they have to go hunting for what brought them there in the first place.

Focusing Only on Impressions

Impressions look good on a report, but they don’t pay the bills. Without tracking clicks and conversions too, it’s easy to mistake visibility for actual results.

Ignoring Conversion Tracking

Without it, there’s no real way to know which ads are working and which are just burning spend. It’s one of the easiest things to set up and one of the most skipped.

Not Reviewing Placements

Left unchecked, ads can end up running on low-quality or irrelevant sites. Checking placement reports regularly helps catch that before it wastes budget.

Using the Same Creative for Every Audience

A message that works for someone hearing about your brand for the first time won’t land the same way with someone who has already abandoned a cart. Different audiences need different creatives.

Changing Campaign Settings Too Frequently

Display campaigns need time to gather data and optimize. Tweaking settings every few days resets that learning process and usually does more harm than good.

Failing to Optimize Based on Performance

Set it and forget it doesn’t really work here. The campaigns that perform best get regular check-ins: adjusting bids, swapping creative, refining targeting based on what the data’s actually showing.

Bottom Line

Google Display Ads can be a useful addition to your digital advertising strategy when you want to reach people beyond Google Search. From building brand awareness and reaching new audiences to bringing previous website visitors back, there are several ways you can use Display Ads.

The key is to choose the right objective, audience, ad format, and budget for your campaign. Once your ads are running, keep monitoring performance and make changes based on the data.

If you’re looking for a skilled team to handle your Google Display Ad Campaign, look no further than local2online, as we’re a Google Partner Agency with 14 years of experience in offering Google Ads marketing services . Get in touch with us and hand over your Google ad stressors to experts.

Frequently Asked Questions About Google Display Ads

What are Google Display Ads used for?

Google Display Ads are mainly used to reach people across websites, apps, YouTube, Gmail, and other placements.

Businesses can use them for different purposes, such as increasing brand awareness, bringing website traffic, generating leads, or driving sales.

How much does it cost to run Google Display Ads?

There is no fixed cost for running Google Display Ads. You can decide how much you want to spend based on your campaign budget.

The actual amount you pay can vary depending on factors such as your targeting, competition, and campaign settings.

Can I target a specific audience with Google Display Ads?

Yes. Google Display Ads allow you to choose your audience based on factors such as demographics, interests, in-market behaviour, and your previous website visitors.

You can select the targeting options that make sense for your campaign.

What is the difference between Google Search Ads and Display Ads?

Search Ads generally appear when someone searches for a product or service on Google. Display Ads, on the other hand, can appear while people are browsing websites, using apps, watching YouTube, or checking Gmail.

So, Display Ads can help you reach people even before they actively search for your business.

Are Google Display Ads good for brand awareness?

Yes. Display Ads can be useful for brand awareness because they allow you to show visual ads to a large number of people across the Display Network.

Even when someone doesn’t click on the ad, they can still see your brand and become familiar with it.

Can Google Display Ads bring sales and leads?

Yes, they can. The results depend on factors such as your offer, audience, ad creative, landing page, and campaign setup.

You can also track conversions to see whether your ads are generating leads, purchases, bookings, or other valuable actions.

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