Display ads are a foundational component of online advertising, appearing on websites, apps, and videos in a visual format—often as banners, squares, or responsive image ads. Unlike text-based search ads that target users actively looking for something, display ads aim to attract users passively as they browse online content. These ads are designed to generate brand awareness, retarget interested users, and sometimes encourage immediate conversions. However, one common question arises for businesses looking to invest in this type of digital marketing: Do you pay-per-click for display ads? The answer is nuanced and depends on the pricing model you choose within the advertising platform you're using, such as Google Ads.
Pay-Per-Click vs. Other Pricing Models
While pay-per-click (PPC) is a common billing method for display ads, it’s not the only option available. In PPC, advertisers are charged only when someone clicks on the ad, making it a performance-based model ideal for driving traffic to a website. This allows for more control over budgeting, since advertisers can set daily or campaign-level limits and only pay for actual engagement. However, advertisers can also choose other models such as cost-per-thousand-impressions (CPM), where they pay for every 1,000 times the ad is shown, regardless of whether users click. There’s also cost-per-acquisition (CPA), where payment is triggered by specific actions like purchases or sign-ups. Each of these models serves different campaign goals—PPC being particularly effective for lead generation and conversion-focused campaigns.
When Pay-Per-Click Makes Sense for Display Ads
Using PPC for display ads is beneficial when your primary goal is to bring visitors directly to your site, promote a product launch, or push a time-sensitive offer. It’s especially useful for retargeting campaigns, where ads are shown to users who’ve already interacted with your brand. Since these users are already familiar with your offering, the likelihood of clicking is higher, making PPC a cost-efficient model. However, PPC might not be the best approach if the objective is purely brand visibility. In that case, CPM might be more appropriate, as it allows your ad to reach a wider audience without being limited by clicks.
Platform Settings and Campaign Strategy
The flexibility of platforms like Google Ads allows advertisers to toggle between PPC and CPM based on campaign needs. Within the Display Network, you can select a bidding strategy that aligns with your objectives. For example, if your focus is conversions, you might opt for enhanced CPC or target CPA bidding, which still uses click data but optimizes for deeper engagement. These settings can be adjusted throughout the campaign as you gather data and refine your goals. Proper setup ensures that your campaign doesn’t just burn through budget but delivers measurable results tied to real user interactions.
Agency Insight and Campaign Management
Partnering with a professional marketing agency can help demystify the complexities of choosing the right payment model for your display ads. Experts can analyze your target audience, business objectives, and market competition to determine whether PPC, CPM, or CPA will yield the best outcome. Agencies like White Noise Digital bring years of experience in running multi-channel campaigns and can fine-tune strategies to make every dollar count. Their deep understanding of platform algorithms and user behavior ensures that campaigns remain efficient, scalable, and results-driven across both search and display networks.
Conclusion: Paying Per Click Is an Option, Not a Rule
In summary, yes—you can pay-per-click for display ads, but it’s not the only way to structure your ad spend. PPC works well when you’re focused on direct user engagement and driving immediate traffic. However, for broader awareness or branding goals, other models like CPM may be more effective. The key lies in aligning your campaign objective with the appropriate billing model. Whether you handle advertising in-house or through a trusted agency, understanding these distinctions ensures that your investment in display ads delivers the best possible return.
