The Evolution of Display Advertising: Trends and Predictions

The Evolution of Display Advertising: Trends and Predictions

Display advertising is essential for brand visibility and targeting audiences. Analyzing these trends improves display ad strategies.

By: Menahil Shahzad | 6 mins read
Published: Mar 12, 2024 12:31:49 AM | Updated: Apr 19, 2024 12:46:41 AM

Is your business still relying on text-based ads to promote business? It is getting old. 

Now it is time to shift gears and make your ads more appealing and converting. 

In this regard, display ads help your digital advertising journey shine. 

In 2021, Consumers got tired of display ads and ranked them as their second least trusted. 

But guess what? 

In 2022 Marketers still believe in them, more than 40% said display ads were developing the most innovative opportunities for advertisers. 

According to Statista, experts predict that this spending will reach over $78 billion by 2026. 

So let's take a deep dive and see what the evolution of Display Advertising will bring for us in 2024 and the near future. 

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What is Display Advertising? 

Display advertising, which comes from the beginnings of banner ads, has evolved into a dynamic force in online marketing. Originally limited to static banners, it now embraces diverse formats, captivating users with interactive and visually compelling content.

Businesses strategically deploy display advertising on platforms like social media, websites, and mobile apps to effectively reach target audiences. 

Visual elements like images, videos, or interactive media aim to enhance brand visibility, drive traffic, and foster user interaction, providing a more engaging experience than traditional text-based ads.

Its ability to offer a visually appealing and interactive experience resonates with users, increasing the likelihood of brand recall and user engagement. 

Learn about online media buying and negotiation in this blog. 

As users spend more time online, businesses use display advertising to connect with their audience personally across various platforms.

Display Advertising

For instance, a fashion retailer showcasing a new collection can employ display advertising through visually stunning banner ads or interactive content featuring models. 

These promotions strategically placed on fashion-related websites, social media, or popular mobile apps ensure the target audience encounters the content during their online activities.

Evolution of Display Advertising:

Display advertising has undergone a remarkable evolution, starting with basic banner ads in the 1990s and progressing to today's sophisticated and diverse landscape.

The late 90s introduced rich media ads with animations and videos, while the 2000s saw the integration of display ads into social media platforms. 

Evolution of Display Advertising

The mid-2010s witnessed the rise of programmatic advertising, allowing for real-time bidding and personalized targeting. Native advertising, video ads, and interactive formats like AR and VR have further shaped the landscape. 

This evolution mirrors advancements in technology and changing consumer behaviors, making it crucial for marketers to stay informed and adapt to the dynamic world of digital advertising.

Types of Display Advertising:

There are mainly five types of display advertising 

Types of Display Advertising



Use Case 



Banner Ads 

They are commonly used for online advertising, displayed at the top, bottom, or sides of web pages.

Features of banner ads include static or animated images, available in various sizes (e.g., leaderboard, rectangle).

Banner ads can be in the form of  Leaderboard (728×90 pixels), and Rectangle (300×250 pixels).

Video Ads

These are short video clips played before, during, or after online video content.

In-stream (within the video player) or out-stream (in content or sidebar).

Examples can be YouTube, Instagram, and other streaming platform commercials.

Pop-Up Ads

They are used in windows that open suddenly, overlaying webpage content.

They are triggered by clicking a link, entering a site, or scrolling down.

Examples can be Promotional messages and special offers.

Native Ads

They are used to blend seamlessly with platform content for a non-disruptive experience.

Its feature is to match the visual style and format of surrounding content.

Examples can be sponsored articles, videos, and social media posts.

Interstitial Ads

Mainly used for full-screen ads appearing between content transitions, offering an immersive experience.

Its feature is to cover the entire screen and require user interaction to dismiss.

Mobile app ads, transitions between web pages or app screens.

Display Advertising Trends in 2024:

Ads you see on websites, known as display ads, contribute to about 12% of the visits to those sites. This makes them a crucial advertising method for any marketer. Here are some important trends to watch out for in display ads this year.

Display Advertising Trends 2024

Rise of Video Display Advertising:

In today's world where people have short attention spans, using short video ads is a top trend to get your message across. Whether you're on social media, websites, or streaming services, videos interestingly grab attention and share information.

It is predicted that using video ads on social media is especially important as spending on this type of advertising will hit $79.28 billion in 2024.

These display video ads let you tell stories, show how a product works, and connect with people emotionally. Since video content is widely liked on different platforms, adding these to your plan can boost how much people notice and interact with your brand.

Programmatic Display Advertising:

Programmatic Advertising is like having a clever helper for your ads. It uses algorithms to automatically buy ad space and show your ads to the right people at the right time. 

In 2023, the value of advertising sold programmatically was estimated to be around 546 billion U.S. dollars. Predictions suggest that this number will increase and reach about 779 billion by 2028.

Programmatic display ads make things more efficient by cutting down on manual tasks and placing ads where they work best using up-to-the-minute information. 

By reaching possible customers with accuracy, programmatic display advertising makes your message get to those who are most likely to take action, making the most out of your investment.

Learn about programmatic advertising fraud here. 

Dynamic Advertising:

If video isn't an option, especially for retail businesses with extensive product catalogs, consider Dynamic Content Optimization (DCO) or Dynamic Product Ads (DPA). These solutions allow you to quickly create numerous high-quality ads without compromising on quality. 

Dynamic ads use consumer data to incorporate appealing creative elements like text, visuals, and featured products. They seamlessly integrate into social media platforms and, on average, outperform traditional static ads by 50% to 90%. 

Creating dynamic creatives is easy with a solid template, product features in a spreadsheet, and a creative design platform with automation features. Input your product details, set up the template, and generate hundreds of ads in minutes.

Contextual Advertising:

Contextual display advertising has emerged as a top trend in 2024, revolutionizing digital marketing strategies. This approach involves delivering targeted ads based on the context of the content being viewed, ensuring that the message aligns with the user's interests and the surrounding content.

 Contextual advertising is safer for brands. You have control over where your ads appear by selecting topics, subtopics, and keywords. This minimizes the risk of your ads appearing on inappropriate or extremist websites.

One example illustrating the effectiveness of contextual display advertising is done by keeping the below scenarios in view.

Where an outdoor adventure brand strategically places its ads within articles or websites related to hiking, camping, or travel. By doing so, they reach an audience actively engaged in content related to their products, maximizing the chances of resonating with potential customers.

 This trend capitalizes on relevancy, creating a more seamless and personalized user experience while optimizing ad performance.

In-App Ads:

In-app ads are gaining prominence as apps replace mobile websites, a trend expected to persist. 

Statistics show that 21% of Millennials open an app more than 50 times a day. In 2022, the spending on app advertising reached $336 billion, with a projected 14% year-over-year growth. 

This shift prompts advertisers to redirect their display ad budgets from mobile websites to in-app campaigns.

Social media apps stand out as a primary target, given that 99% of social media users access these platforms through apps.

However, it's not limited to social media alone. Gen Z, for instance, predominantly uses their mobile phones for entertainment, with YouTube being their top choice over TikTok. Following entertainment, they engage in gaming and even use apps for educational purposes.

Various display ad formats are available for these apps. For example, investing in YouTube ads allows for display image advertising. 

The HelloFresh app serves as an illustration, with ads appearing as users scroll through their suggested feed, providing a way to reach YouTube users without relying on video ads.

Future Prediction for Display Advertising:

Future Prediction for Display Advertising

Augmented Reality (AR) and Virtual Reality (VR) Domination: 

AR and VR technologies will continue to revolutionize display advertising, providing immersive experiences that captivate audiences.

 As these technologies become more accessible and affordable, advertisers will increasingly leverage AR and VR to create interactive and engaging ad campaigns. 

Consumers will enjoy trying products virtually before making a purchase decision, leading to higher engagement rates and improved conversion rates.

AI and Machine Learning Optimization: 

AI and machine learning algorithms will play a role in optimizing display advertising campaigns.

 Marketers will rely on AI-driven insights to refine audience targeting, personalize ad creatives, and optimize ad performance. 

By harnessing the power of AI, advertisers will unlock new levels of efficiency and effectiveness in their display advertising efforts, driving higher ROI and better outcomes.

Integration with E-commerce: 

The seamless integration between display advertising and e-commerce platforms will deepen, offering consumers a frictionless path from discovery to purchase. 

With just a click, users will be able to transition from viewing an ad to exploring products on an e-commerce website, streamlining the shopping experience. 

As e-commerce grows, display advertising will play its role in driving sales and enhancing brand visibility across various online marketplaces.

5G-Powered Innovations:

 The widespread adoption of 5G technology will usher in a new era of display advertising characterized by faster internet speeds and lower latency. 

Advertisers will capitalize on 5G capabilities to deliver more sophisticated and interactive ad experiences, such as live streaming, gaming, and AR/VR content. With the ability to reach consumers in real time with high-quality multimedia content, 5G-enabled display ads will offer unparalleled engagement opportunities.


In conclusion, the evolution of display advertising is propelled by advancements in technology and shifts in consumer preferences. 

In 2024, video display advertising will dominate, captivating audiences across platforms. Programmatic buying ensures precise targeting, while dynamic and contextual ads personalize user experiences, boosting engagement. In-app ads gain prominence with the surge in mobile usage, especially among younger demographics.

Augmented reality (AR) and virtual reality (VR) technologies offer immersive experiences, while AI optimization drives efficiency and personalization. 

Integration with e-commerce platforms facilitates seamless transitions from discovery to purchase, enhancing the shopping experience. 

Additionally, the rollout of 5G technology promises faster speeds and lower latency, enabling more sophisticated ad formats and real-time interactions.

 Adapting to these trends is essential for marketers to stay competitive and maximize the impact of their display advertising efforts. 

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