Do Dealer Display Ads Still Suck? Let’s Find Out!

By Ian Cruickshank, CEO of Leadbox

In today’s digital marketing landscape, display ads often get a bad rap. For years, I’ve encountered skepticism from dealerships and marketers alike about their effectiveness. Having spent over two decades in digital advertising—and currently leading the charge at Leadbox—I’ve seen firsthand how display ads can be transformative when used strategically. Despite their reputation for being intrusive, these ads remain an invaluable tool in the marketer’s arsenal.

Let’s take a deep dive into what display ads really are, why they matter, and how dealerships can leverage them to drive meaningful results.

What Are Display Ads?

At their core, display ads are any visual message presented to an audience without their explicit request. Unlike search ads, which require the user to initiate the interaction, display ads are served to consumers as they browse websites, scroll social media feeds, or watch videos. Think of them as the digital equivalent of billboards—grabbing attention and sparking curiosity.

Evolution of Display Ads

Back in the early days of digital marketing, display ads were simple. Static banners like the “big box” and “skyscraper” formats dominated the landscape. Then came animations, videos, and dynamic inventory ads, offering increasingly sophisticated ways to engage audiences. Today, we even see text-based display ads, courtesy of Google’s expanding portfolio.

The key takeaway? Display ads have evolved to encompass a wide variety of formats, ensuring there’s an option to suit every campaign and audience.

Why Display Ads Are Misunderstood (and Why They Work)

It’s no secret that many people find display ads annoying. They interrupt our browsing, distract us from tasks, and, let’s face it, can sometimes feel irrelevant. But here’s the paradox: display ads are frustrating because they work.

When executed correctly, display ads do more than just annoy—they distract. And distraction, in marketing terms, is an opportunity. Display ads introduce new ideas, products, or services to consumers who may not have been searching for them but are now intrigued.

The Magic of Interruption

Display ads operate on an “interruptive” model, meaning they capture attention in the middle of other activities. This intentional disruption is what makes them so powerful. Whether you’re introducing a limited-time offer, showcasing new inventory, or raising awareness about a service, display ads ensure your message reaches an audience that might not have otherwise encountered it.

The Role of Display Ads in Your Dealership’s Marketing Mix

Raising Awareness

One of the primary functions of display ads is to create awareness. For example, imagine your dealership is offering a tire sale—“Tires at Cost.” Who’s searching for that? Likely no one, unless they already know about it. Display ads help you bridge that gap by introducing the promotion to your audience and generating demand.

Generating Demand

Display ads don’t always drive immediate sales, and that’s okay. Their purpose often lies in planting a seed. They’re the first step in a marketing funnel that might include search ads, email campaigns, and follow-ups. This layered approach ensures that consumers are primed for conversion when they’re ready to act.

Use Cases for Display Ads in Dealerships

Here are some scenarios where display ads shine:

1. Announcing Special Offers
   Got a service deal or limited-time financing offer? Display ads are perfect for getting the word out, especially for promotions like “0% Financing” or “Tires at Cost.”
2. Introducing New Inventory
   Dynamic inventory ads allow you to showcase specific vehicles, ensuring potential buyers see relevant options tailored to their interests.
3. Promoting Events
   Whether you’re opening a new location or hosting a sale, display ads can help attract attention and drive foot traffic.
4. Retargeting Visitors
   Display ads are excellent for reminding visitors about vehicles they’ve viewed on your website, nudging them closer to a purchase.

What goes into a Display Ad?

Display Ads Components

To create a successful display ad, focus on these three components:

1. The Creative
   This is the visual or video element of the ad. It needs to grab attention quickly—think three seconds or less. Keep the design clean, the messaging clear, and avoid overcrowding the ad with text. For instance, when promoting a high-end vehicle like a Porsche GT3, a simple silhouette and a launch date can be far more effective than a detailed image.
2. The Target Audience
   Targeting is everything. Platforms like Google and Facebook allow for precise demographic, geographic, and psychographic targeting. For example, a Honda CR-V ad might target young families or outdoor enthusiasts, while a luxury car ad would focus on high-income individuals.
   Pro tip: Avoid lumping multiple campaigns into a single ad. Instead, create separate campaigns for different vehicles or offers to better tailor your messaging.
3. The Call to Action (CTA)
   Every ad should guide users toward the next step, whether that’s visiting a landing page, exploring inventory, or learning more about a promotion. Make your CTA explicit—e.g., “Click to View Inventory” or “Learn More About Our Offers.”

Landing Pages: The Missing Link

An often-overlooked aspect of display advertising is where the ad leads. Your landing page must align with the ad’s message. If your ad promotes a tire sale, the landing page should highlight the same offer prominently. Misaligned landing pages can confuse users and lead to lost opportunities.

Measuring Success: Beyond Clicks

One of the most common mistakes dealerships make is evaluating display ads solely on direct leads or sales. Display ads are not meant to close deals immediately—they’re designed to spark interest and drive awareness.

Upper-Funnel Benefits

Display ads contribute to the top of the marketing funnel, creating awareness and interest. Over time, this leads to lower acquisition costs as more consumers are primed to convert through search ads, email campaigns, or direct inquiries.

Caveats with Lead Ads

While platforms like Facebook and Google offer lead ad formats, their effectiveness varies. These ads often generate low-quality leads because they require minimal effort from the user. To maximize ROI, consider integrating lead ads with a broader strategy that includes nurturing and follow-ups.

Display Ads: A Powerful Tool When Used Right

Display ads are not a magic bullet, but when integrated into a comprehensive marketing strategy, they are undeniably effective. Whether you’re introducing a new promotion, targeting specific demographics, or retargeting previous visitors, display ads play a crucial role in capturing attention and driving action.

At Leadbox, we believe display ads don’t suck—they just need to be done right. By focusing on creative, targeting, and alignment, dealerships can unlock their full potential.