The realm of digital advertising is continually evolving with new terminologies and technologies, creating a rich tapestry of terms. Navigating this vast landscape can be challenging, especially when it comes to understanding specific terms like programmatic ads and display ads. This article aims to clarify these two frequently encountered concepts, exploring their meanings, distinguishing factors, and the rationale behind their use in online advertising.Uncover the nuances between programmatic and display ads in this insightful piece:The crux of the difference between programmatic ads and display ads lies in the purchasing process. Programmatic advertising leverages multiple ad exchanges, whereas display advertising operates through a singular ad network, such as Google Ads.Programmatic ads are digital advertisements acquired and positioned through software rather than manual methods. Programmatic ad buying software empowers advertisers to automate the acquisition of ad space, select optimal ad placements, target their audience, and more, all without the need for human intervention.This contrasts with the conventional approach of negotiating with representatives and manually requesting specific ad placements.Display ads are visually-oriented digital advertisements that may incorporate images, video, text, and audio. They come in various formats, including banner ads, video ads, and native advertising. Advertisers can distribute display ads across websites via networks such as the Google Display Network.The term “display” is commonly used to differentiate image and video-based ads from text-based ads on search engine results pages (SERPs). Display ads are visible as users navigate through websites, while search ads appear post-user search queries on search engines. An illustrative example of a display ad is a banner ad: 
The terms “programmatic” and “display” pertain to distinct facets of digital advertising.Programmatic pertains to the acquisition and placement of ads, while display refers to the ad format and its placement — visual ads distributed across a network of websites. As these two concepts address separate aspects of advertising, they can intersect in certain instances.Some programmatic ads are display ads, and vice versa. However, display ads can also be manually placed rather than programmatically. Additionally, non-display ad types can be programmatically purchased, such as search ads.Programmatic advertising is poised to become the future of online advertising due to its numerous benefits.Here are six key advantages of programmatic advertising:Programmatic advertising significantly reduces time expenditure by automating repetitive tasks, such as bidding and ad space requests. It also streamlines time-consuming analyses.Programmatic advertising provides advertisers with a broader range of targeting options and facilitates the use of advanced targeting strategies.With programmatic advertising, targeting can be based on:
Demographics: Information like age, gender, income, marital status, and more
Interests: Preferences and interests derived from user data and website visitation
Location: From broad areas like countries and regions to specific places like neighborhoods, addresses, and individual stores
Retargeting: Targeting users who have previously visited your website or shown interest in your products or services
Automation and software offer advertisers comprehensive insights into ad placements, costs, and performance, enhancing campaign transparency.Advertising software provides real-time performance reporting, allowing advertisers to see precise details and optimize campaigns accordingly.Automation enables advertisers to identify the best ad placements across a vast list of sites, capabilities that would be unattainable manually.Programmatic advertising enhances ad performance through automation, precise targeting, reporting, and optimization, while also saving time and money, thereby improving return on investment (ROI).Display ad spending in the U.S. is projected to exceed $92 billion in 2021. The investment in digital advertising is substantial due to its proven effectiveness. Display ads, in particular, offer several benefits:Display ads are visually engaging and can capture user attention, fostering positive brand perceptions.Display ads offer creative flexibility, allowing for the integration of images, graphics, video, animation, and text, with brand colors and logos.One of the most effective uses of display ads is to boost brand awareness. Users encounter your ads as they browse various sites, thereby introducing your brand to them.The visual nature of display ads also enables the quick conveyance of brand elements.Display ads offer a variety of targeting options akin to those found in programmatic advertising. You can use display ads for retargeting potential customers on the brink of a purchase decision, and tailor ads based on demographics, location, or interests.For instance, a pet store could showcase cat-themed ads to cat owners and dog-themed ads to dog owners.Compared to other advertising mediums, such as television or billboards, display advertising requires a relatively modest investment, both in ad production and campaign budgeting.Reach is primarily dependent on the ad network, but display ads can achieve extensive reach, introducing your brand to new users who may have never discovered you. For example, the Google Display Network alone can display your ads across over two million websites, apps, and videos, reaching more than 90% of global internet users.Online advertising, encompassing programmatic and display ads, is a vital component of digital marketing.Current statistics show that digital ad spending now accounts for over half of ad spending in the U.S., driven by its proven effectiveness. According to Google, its ad network yields an average ROI of $2 for every $1 spent.Maximizing the value of online advertising is best achieved by partnering with an experienced digital advertising agency. At WebFX, we have managed over 650 PPC advertising campaigns for our clients, earning us the status of a Google Premier Partner. Over the past five years, we have generated over $10 billion for our clients.Discover more about collaborating with our team of over 500 digital marketing experts by exploring our PPC management services or requesting a free quote online today.
