Programmatic campaigns often rely on the interplay between different ad formats to achieve meaningful results. Two primary formats that frequently come into play are display ads and video ads. Although both serve as powerful tools to reach targeted audiences, they each shine in different scenarios. Understanding when it’s best to use one over the other—and how to combine them for maximum return on ad spend (ROAS)—is key to building successful campaigns. This understanding is especially valuable if you have unique audience data, such as millions of cannabis purchaser records, that can enrich your targeting and lead to stronger outcomes for both cannabis and non-cannabis brands.
This article explores how display ads and video ads differ, when each format is most effective, and how pairing them can create a unified, effective approach. We’ll keep it straightforward, making sure anyone can understand how to leverage these strategies to improve ROAS without needing a degree in marketing.
Understanding Display Ads in Programmatic Campaigns
Display ads are the banners, images, and graphic elements you see across websites, mobile apps, and other digital channels. They typically appear as static or animated visuals placed alongside the main content. These ads are often easier to produce than video ads, usually requiring less production time and smaller budgets. They can be rapidly deployed, modified, and tested at scale.
In a programmatic environment, display ads use automated systems to bid on ad space in real-time. This means you can show your message to the right person at the right moment. For instance, if you have millions of cannabis purchaser data points, you can identify users who have previously shown interest in cannabis-related products and serve them relevant display ads as they browse other sites. This improves the likelihood that your ad will resonate, increasing the chance of engagement and, ultimately, conversion.
Display ads are commonly associated with brand awareness and retargeting. They function well as quick reminders, reinforcing brand presence to people who have already encountered your brand or expressed interest in your industry. With display ads, you can test various headlines, offers, and images rapidly. You can also rotate through different messaging to see what grabs attention most effectively.
Understanding Video Ads in Programmatic Campaigns
Video ads are short, engaging clips placed before, during, or after video content, and sometimes even within social feeds or streaming platforms. While they tend to require more time and investment to produce, video ads can deliver richer storytelling, stronger emotional connections, and deeper brand impressions. They often captivate viewers in ways that static or even animated display ads might not.
The programmatic side of video ads ensures that they reach viewers who match your target criteria. If you’re leveraging a unique dataset—like millions of cannabis purchaser records—you can craft a video message that speaks directly to these consumers. For instance, you could highlight how a particular cannabis product fits their lifestyle, showcase educational content about product types, or demonstrate new product features. The richer format of video can help you explain concepts more thoroughly, show product benefits, and create brand affinity.
Video ads work well for generating excitement and initial interest. They grab attention and can lay the groundwork for further interactions down the line. They are ideal for introducing new products, telling a brand story, or building trust with an audience not yet familiar with what you offer. If a user sees your engaging video ad and becomes curious, you can then follow up later with display ads to remind them to take action, such as making a purchase.
Key Differences Between Display Ads and Video Ads
While both display and video ads can be part of a cohesive programmatic strategy, they have notable differences:
Format Complexity:
Display ads rely primarily on visuals and short copy. They’re straightforward and work like digital billboards. Video ads, on the other hand, can convey more details—using visuals, voiceovers, music, and narrative flow to engage viewers on multiple levels.Cost and Production Time:
Display ads are generally simpler and cheaper to produce. A skilled designer can create them relatively quickly. Video ads typically require more resources: scriptwriting, filming, editing, sound, and sometimes actors or animations. This often means higher costs and longer lead times.Engagement Potential:
Video ads tend to hold a viewer’s attention longer. People are often drawn to motion, storylines, and sound. Display ads are more passive—they appear on the page and rely on a strong image and compelling text to get noticed. While display ads might not hold attention as long, they can still be very effective for quick reminders and calls to action.Use Cases in the Customer Journey:
Video ads are often placed at the top of the marketing funnel to spark initial interest and build brand perception. Display ads shine throughout the funnel, from raising brand awareness to retargeting and conversion nudges. This makes display ads highly versatile, suitable for reinforcing messages introduced by a video campaign.
When Is It Best to Use Display Ads?
Display ads are perfect if your goal is to keep your brand in front of potential customers throughout their browsing journey. They work exceptionally well for:
Brand Familiarity and Retargeting:
If someone visited your website or landing page but didn’t purchase, display ads can gently remind them of what they viewed. By using programmatic targeting, you can serve these ads across various websites they visit later. This subtle reminder can tip them over into converting when they’re ready.Building Recognition Over Time:
Display ads are often seen multiple times, reinforcing your brand name and visuals. This constant presence can be valuable if you’re trying to stay top-of-mind. For cannabis brands, imagine showing an image of a popular strain or a newly launched product line to users who previously browsed cannabis-related content.Low Barrier to Entry:
If you want to get started quickly, display ads are easier to produce. You can run multiple versions at once to see which images, headlines, or calls to action perform best. For example, if you have cannabis purchaser data, you might test images of different products or highlight seasonal discounts. The simplicity and scalability make display ads an excellent ongoing tactic in your campaign mix.Driving Conversions After Initial Interest:
Display ads are excellent for “closing the deal.” Maybe a user watched a video ad showcasing a new cannabis-infused beverage. Later, as they browse the web, a display ad could pop up reminding them of a special promotion or discount code, making it easier for them to click through and purchase.
When Is It Best to Use Video Ads?
Video ads excel when you need to create a memorable impression and build emotional connections. They are ideal for:
Introducing a New Brand or Product:
If your audience has never heard of your brand, video ads can quickly communicate what you’re about. For a cannabis brand entering a new market, a short, engaging video can show the quality of products, highlight their origin, and explain how they stand out from competitors. Consumers get a feel for your brand’s personality and values.Explaining Complex Concepts or Benefits:
Some products, especially in specialized industries like cannabis, might need a bit of explanation. A video ad can walk viewers through the benefits of a particular product, the intended effects, or how it fits into a broader lifestyle. This detail is hard to communicate effectively with just a simple image and a line of text.Capturing Attention and Driving Initial Interest:
Video content can be more engaging and shareable. If you have a compelling story—perhaps how your cannabis product is sourced from sustainable farms or crafted with unique ingredients—video ads let you showcase that narrative. This can generate initial buzz and curiosity, prompting viewers to learn more.Building Trust and Brand Personality:
Video allows you to show people, places, and processes. You can feature staff, customers, testimonials, or behind-the-scenes footage. This humanizes your brand. For cannabis brands especially, showing the care that goes into cultivation and quality control can reassure consumers that they’re making a safe, informed choice.
How Display and Video Ads Work Together
Though display and video ads have distinct strengths, they can be even more powerful when used together. A potential sequence might look like this:
Video for Intro and Engagement:
Start by running video ads to reach a broad audience within your target segment—say, known cannabis purchasers. The video provides an immersive introduction, showing them what makes your product special or why your offer is valuable. This creates familiarity and piques their interest.Display for Reinforcement and Action:
After someone has viewed your video, use display ads to follow up as they continue to browse the web. Display ads can reinforce the message shown in the video, remind the viewer of product features, or highlight a limited-time offer. This combination builds a path from awareness (via video) to consideration and conversion (via display).Data-Driven Personalization:
If you possess millions of cannabis purchaser records or similar first-party data, you can create audience segments based on behaviors, preferences, or purchase history. Those who watched the entire video might get one type of display ad, while those who only watched the first few seconds might see another, more introductory offer. This data-driven approach ensures every interaction feels more relevant and timely.Sustained Engagement Across the Funnel:
By blending video and display, you create a continuous presence. Video grabs attention at the start, while display nurtures the relationship. Over time, this consistent touchpoint approach can increase ROAS as each ad format plays a complementary role.
Improving ROAS with a Combined Strategy
ROAS (Return on Ad Spend) measures how much revenue you earn for every dollar spent on advertising. To boost ROAS, you need efficient targeting and effective messaging. Using video and display ads together helps achieve this:
Better Audience Segmentation:
With programmatic capabilities, you can identify which segments respond best to videos and which interact more with display ads. If you have cannabis purchaser data, you might find that certain segments respond better to videos showcasing product quality, while others respond to straightforward display offers featuring a discount code. This level of segmentation allows you to invest your budget where it counts.Optimized Budget Allocation:
Sometimes, investing a bit more in video early on helps build interest, which leads to more efficient conversions later via display ads. Conversely, if a segment shows strong affinity for display ads, you can refine your spend accordingly. Over time, analyzing performance and adjusting your strategy leads to higher ROAS.Consistent Messaging for Higher Conversion Rates:
When users repeatedly encounter consistent, relevant messaging, they’re more likely to convert. Video ads set the stage, and display ads serve as frequent prompts. By the time a user is ready to purchase, they’ve heard your story, understand your product, and feel comfortable engaging, driving up conversion rates and ROAS.Leveraging First-Party Data for Precision:
If your company has millions of cannabis purchaser data points, you can create profiles of different customer types. Some might prefer edibles, while others prefer flower products. You can run video ads to introduce a new line of edibles to a segment already known for edible purchases, then follow up with display ads that remind them to buy. This approach ensures that every interaction is more relevant, leading to higher ROAS because you waste less spend on mismatched audiences.
Platform-Neutral Strategies for Pairing Display and Video
The beauty of programmatic advertising is that it can run on various ad exchanges, websites, and devices without tying you to one platform. You can maintain a platform-neutral approach by:
Ensuring Consistent Creative Across All Channels:
Keep your brand’s look, tone, and messaging consistent. Your video might show people enjoying a cannabis product in a relaxing environment, while your display ads highlight the same product’s packaging or price. This helps viewers connect the dots, recognizing that the display ad they see after watching the video is part of the same story.Adjusting Frequency Caps:
Frequency caps ensure that people don’t see your ads too many times. This helps you strike a balance between staying top-of-mind and avoiding ad fatigue. For example, if someone has seen your video ad, you might limit video impressions but serve more display impressions. This subtle balancing act optimizes spend and maintains user goodwill.Testing Different Combinations and Sequences:
One audience segment might respond better when they first see a video ad and then several display ads. Another might react best if they see one display ad before encountering a video. By testing multiple scenarios and measuring which sequence yields the best ROAS, you can refine your strategy.Scaling With Data Insights:
Over time, your data will reveal patterns. Maybe cannabis purchasers who engage with a particular video storyline respond strongly to follow-up display ads offering a discount code. Use these insights to scale successful tactics to larger audiences, improving efficiency and ROAS.
Practical Tips for Combining Display and Video Ads
Start With a Strong Hook:
For video ads, use the first few seconds to grab attention. If you know your audience cares about organic, pesticide-free cannabis products, show that right away. Once viewers recognize that the content is relevant to their interests, they’re more likely to watch the video through.Use Display Ads as a Gentle Nudge:
After running video ads, serve display ads that remind viewers of what they saw. If your video featured a new cannabis-infused beverage, the display ad might highlight a promotional deal. This combination helps move interested viewers down the funnel toward conversion.Maintain Clear Calls to Action (CTAs):
Every ad—display or video—should have a purpose. Maybe the video ad’s purpose is to inform or intrigue, while the display ad’s goal is to prompt a purchase. Make sure each format has a clear, concise CTA aligned with the audience’s position in the buying cycle.Segment Based on Engagement:
Track how users interact. Did they watch the entire video, or did they skip after a few seconds? Did they click on any display ads previously? Use these signals to adjust targeting. Serve more display ads to those who have shown strong interest, or retarget those who engaged with the video but didn’t convert. This personalization can significantly boost ROAS.Adapt to Different Devices:
Some audiences watch more videos on mobile while browsing cannabis content. Others might prefer desktop environments. Optimize your video and display formats to suit various devices. Clear visuals, legible text, and quick load times improve user experience and performance metrics.
Tracking and Measuring Success
Measuring the success of your combined display and video strategy is crucial. Key performance indicators might include:
View-Through Conversions:
These measure how often people convert after seeing (but not necessarily clicking) an ad. It’s particularly relevant for video ads, which often inspire action later rather than immediately.Click-Through Rates (CTR):
CTR can measure initial interest in display ads. If you’re seeing a high CTR after users view your video ads, it suggests that the video primed them to engage more seriously when confronted with a direct display ad offer.Conversion Rate and ROAS:
Ultimately, you want to see improved ROAS. By tracking which combinations of video and display placements yield the highest returns, you can focus your budget on the most efficient tactics.Engagement Metrics for Video Ads:
Metrics like watch time, completion rate, and drop-off points help refine your video content. If viewers consistently stop watching at the halfway mark, try tweaking the content to be more engaging early on or shorten the video.Attribution Modeling:
Consider which touchpoints deserve credit for a conversion. Perhaps a viewer first learned about your cannabis product through a video ad and then later clicked a display ad to purchase. Attribution modeling helps you understand how each format contributed so you can optimize spending in the future.
Cannabis Purchaser Data as a Competitive Edge
For advertisers who have access to millions of cannabis purchaser data points, the advantage is clear: you know your audience’s buying habits. This data lets you fine-tune both your display and video strategies:
Custom Segment Creation:
Build segments based on product preferences, purchase frequency, or past engagement. Video ads can introduce a new product line to a segment known for exploring different strains, while display ads can highlight a special discount to habitual buyers.Relevance and Personalization:
Personalization is key. If certain segments prefer edibles, show them video ads focusing on the taste, quality, and effects of your edibles, then follow up with display ads offering a special bundle deal. This precision leads to better engagement and higher ROAS.Expanding Beyond Cannabis:
Even if you serve industries outside of cannabis, your data can still guide targeting. Perhaps your cannabis purchasers also buy organic foods or wellness products. Tailor your messaging to appeal to these broader interests, using video ads to introduce a wellness-focused cannabis line and display ads to reinforce that connection with complementary products.
Putting It All Together for Positive Results
Choosing between display ads and video ads is not about picking a winner. Both are valuable tools that shine in different scenarios. Display ads are your steady workhorse—easy to produce, quick to iterate, and perfect for constant reminders and conversions. Video ads are your spotlight—ideal for introducing brands, telling stories, and building emotional connections.
When combined thoughtfully, they form a powerful one-two punch. Use video ads to set the stage, telling your brand’s story and engaging your audience on a deeper level. Then, use display ads to reinforce that message, remind viewers of your products, and guide them toward making a purchase. By leveraging unique datasets like cannabis purchaser information, you can tailor both formats to the audience’s preferences, improving engagement and ROAS.
Every campaign is a learning experience. Start with a hypothesis: maybe videos build the initial interest in your cannabis brand’s new product line, and display ads close the deal with targeted offers. Measure the results, then adjust your strategy. Over time, you’ll refine the perfect balance of video and display ads to support your goals, capture your ideal audience, and deliver a strong ROAS, all while keeping your messaging fresh, relevant, and compelling.
