Introduced in Beta in late 2016, Google’s new Responsive Display Ads (RDAs) have changed the way digital marketers have approached display ads. By creating a more flexible, content-driven ad that is easily manipulated into different areas of the web, Responsive Display Ads are a great addition to digital strategy.

But, are they better than their static or rotating display ad counterparts?

While Google still allows digital advertisers to upload static, rotating or video display ads in the Ads platform, there has been a definite move by Google to push advertisers toward responsive display ads. There are a few reasons behind this move by Google and they’re all good news for marketers that are looking to reach their target audience more effectively and with more relevancy.

Responsive Display Ad Example

RDAs allow the advertiser to upload up to 15 different images, five logos, create up to five short headlines, five descriptions and include a long headline. The result is an ad that features a hero image and text that fits the space where the ad is placed. The Responsive Display Ads also convert well into native advertisements, which are known to have higher interaction rates with consumers.

Google’s push to have advertisers utilize RDAs over static ads drives at two goals:

  • Ad targeting
  • Ad relevancy

Basically, the better targeted and more relevant an ad is to a consumer, the higher likelihood there is that it will be clicked on. Which means more business for you – the marketer – and more money for Google. The text-based nature of the Responsive Display Ads allows Google Ads to analyze the ad and optimize the right mix of an image, headline and description to generate more interaction.

Again, this all spells good news for marketers looking for results with display ads. But do they actually work better than other ads?

While research points to a resounding “yes,” there are some considerations to make. Responsive Display Ads are known to have higher impression rates (as Google prefers them) and stronger interaction (or Click-Through) rates than standard display ads. However, our own research here at MarketMatch proved the results to be just about tied at this time.

All that being said, Responsive Display Ads are not for everyone. There is a strong argument to be made that a brand loses quite a bit of brand power by advertising with responsive ads. Additionally, you lose the eye-catching movement of a video or rotating banner ad with RDAs.

Does your bank or credit union use Responsive Display Ads? Why or why not?