Why is display advertising effective?

The selected answer options, It builds brand awareness and It drives conversions, are correct because these are two key reasons why display advertising is effective. Building brand awareness is one of the primary goals of display advertising, as it allows businesses to reach a wide audience through visually compelling ads, helping to establish familiarity with the brand and its offerings. Display ads, which can include images, videos, and other rich media, are designed to grab attention and create lasting impressions, which can influence potential customers over time. Additionally, display advertising drives conversions by targeting users who are in the consideration phase, nurturing them through a visually engaging experience. While display ads can increase awareness, they can also prompt users to take action, such as making a purchase, signing up for a newsletter, or engaging with content. The option You only ever pay when someone clicks on your ad refers to CPC (Cost per Click) pricing, which isn't specific to display advertising, as display ads can also be priced on a CPM (Cost per Thousand Impressions) basis. Similarly, the statement It is a text-only format is inaccurate, as display ads are typically rich media, including images and videos, rather than being limited to text.