Display advertising is the practice of buying visual ad placements (banners, rich media, video) across websites and apps to reach audiences outside of search. In analytics terms, it’s a traffic acquisition channel that drives impressions, clicks, and downstream conversions. Properly tagged with UTM Parameters (e.g., utm_medium=display), it’s tracked like any other Campaign and measured by on-site behavior: Session starts, engagement, and Conversion Rate.
Why it matters
Display excels at scalable reach and top-/mid-funnel impact. It fills the remarketing and awareness gap that search can’t. In performance workflows, display warms up new users, who later convert through branded search or email—so plan your Attribution Model accordingly. On-site analytics should answer: does display bring qualified traffic (bounce, depth, time), does it assist conversions, and what’s the efficient cost for outcomes?
Core metrics & quick formulas
- CTR (Click-Through Rate): how many clicks per 100 impressions.
Formula:CTR = (Clicks ÷ Impressions) × 100%→ see Click-Through Rate (CTR) - CPC (Cost Per Click):
CPC = Cost ÷ Clicks - CPM (Cost per 1000 Impressions):
CPM = Cost ÷ (Impressions/1000) - CPA (Cost Per Acquisition):
CPA = Cost ÷ Conversions→ see Cost Per Acquisition (CPA) - Post-click on-site quality: bounce/engagement, pages per Session, and ultimate Conversion Rate.
Mini example
Campaign spend: $2,000; Impressions: 400,000; Clicks: 2,000; Conversions: 120
- CTR = 2,000 ÷ 400,000 × 100% = 0.5%
- CPM = 2,000 ÷ (400,000/1000) = $5.00
- CPC = 2,000 ÷ 2,000 = $1.00
- CPA = 2,000 ÷ 120 ≈ $16.67
Analyst’s checklist
- Tag consistently (
utm_medium=display) and land traffic on a focused Landing Page. - Segment new vs. returning User behavior to see if display is prospecting or nurturing.
- Compare last-click vs. data-driven Multi-Touch Attribution before judging ROI.
- Monitor frequency/creative fatigue via declining CTR and rising CPA.