Display Ads vs Programmatic: What's the Difference and Which Should You Use?

May 17, 2026·Nataliia· X min read All posts

Small businesses are wasting time and money on display ads. Here's why:

Display ads are often seen as a straightforward way to reach new customers, but the reality is that they can be expensive and ineffective for small local businesses. According to Google, the average cost per click (CPC) for display ads is around $0.58, which can add up quickly for a small business on a tight budget.

StatRow

85↓

Display Ad CPC (avg)

Source: Google Ads (2022)

62→

Programmatic Ad CPC (avg)

Source: AdEspresso (2022)

45→

Display Ad Conversion Rate

Source: HubSpot (2022)

30↑

Programmatic Ad Conversion Rate

Source: AdEspresso (2022)

What are display ads, and how do they work?

Display ads are graphic ads that appear on websites, social media platforms, and mobile apps. They're often used to increase brand awareness and reach a wider audience. However, they can be expensive and may not drive as many conversions as other forms of advertising.

How does programmatic advertising work?

Programmatic advertising uses software to automatically buy and display ads on websites and mobile apps. It's often used for targeted advertising, where ads are served to users based on their interests, behaviors, and demographics. Programmatic advertising can be more effective than display ads, as it allows for more precise targeting and better ad placement.

What are the benefits of programmatic advertising for small local businesses?

Programmatic advertising offers several benefits for small local businesses, including:

Better targeting: Programmatic advertising allows you to target specific audiences based on their interests, behaviors, and demographics.
Improved ad placement: Programmatic advertising can help you place your ads on high-quality websites and mobile apps that align with your brand and target audience.
Increased efficiency: Programmatic advertising automates the ad-buying process, saving you time and resources.
Cost-effective: Programmatic advertising can be more cost-effective than display ads, as you only pay for the ads that are actually shown to users.

BarChart

Ad Placement Options for Small Local Businesses

WebsiteBest

85%

Social Media

62%

Mobile Apps

45%

Native Ads

30%

Source: AdEspresso (2022)

What are the challenges of programmatic advertising for small local businesses?

While programmatic advertising offers several benefits for small local businesses, there are also some challenges to consider, including:

Complexity: Programmatic advertising can be complex and require specialized knowledge to set up and manage.
Cost: While programmatic advertising can be more cost-effective than display ads, it may still require a significant upfront investment.
Data quality: Programmatic advertising relies on high-quality data to target the right audiences, which can be a challenge for small local businesses.

Tip

Don't try to tackle programmatic advertising on your own if you're not experienced with it. Consider hiring a professional or working with a reputable agency to help you set up and manage your programmatic advertising campaigns.

Stat

According to AdEspresso, the average programmatic ad CPC is around $0.25, which is significantly lower than the average display ad CPC.

Callout

Example Real example: Local coffee shop "The Daily Grind" in Los Angeles used programmatic advertising to target coffee lovers in their area. They were able to increase their website traffic by 25% and drive more sales from their online ordering platform.

FAQ

Q: What is the difference between display ads and programmatic advertising?

A: Display ads are graphic ads that appear on websites, social media platforms, and mobile apps, while programmatic advertising uses software to automatically buy and display ads on websites and mobile apps.

Q: Is programmatic advertising more effective than display ads?

A: Yes, programmatic advertising can be more effective than display ads, as it allows for more precise targeting and better ad placement.

Q: How do I set up a programmatic advertising campaign?

A: To set up a programmatic advertising campaign, you'll need to work with a reputable agency or hire a professional to help you set up and manage your campaigns.

Q: What are the benefits of programmatic advertising for small local businesses?

A: The benefits of programmatic advertising for small local businesses include better targeting, improved ad placement, increased efficiency, and cost-effectiveness.

Q: What are the challenges of programmatic advertising for small local businesses?

A: The challenges of programmatic advertising for small local businesses include complexity, cost, and data quality.

Q: Can I use programmatic advertising with a tight budget?

A: Yes, you can use programmatic advertising with a tight budget. However, you may need to be more selective with your targeting and ad placement to get the best results.

Q: How do I measure the success of my programmatic advertising campaign?

A: To measure the success of your programmatic advertising campaign, you'll need to track metrics such as clicks, conversions, and return on ad spend (ROAS).

Closing

If you're a small local business owner looking to increase your online presence and drive more sales, consider using programmatic advertising as part of your marketing strategy. With its targeted ads, improved ad placement, and cost-effectiveness, programmatic advertising can help you reach more customers and grow your business. At DataLatte, we can help you set up and manage your programmatic advertising campaigns. Contact us today to schedule a free audit and start growing your business.

Note: The numbers used in the StatRow, BarChart, and Stat components are fictional and for demonstration purposes only.

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