Why Your Display Ads Aren’t Converting (And How to Fix It)

If you’ve ever looked at your programmatic display campaign data and thought, “Why aren’t these display ads driving conversions?”, you’re not alone.

Display ads get a bad rap for being “awareness-only,” but the truth is: they can drive conversions when set up strategically. The problem often isn’t the channel itself, but how it’s targeted, optimized, or aligned with your audience’s behavior.

Let’s break down the most common reasons your display ads are underperforming, plus actionable fixes to turn low conversion rates into consistent results.

The Truth About Display Ads and Conversions

First, let’s clear up a myth: Display isn’t a “conversion-first” channel like search (where users actively hunt for solutions). Most display conversions happen post-view, meaning a user sees your ad, doesn’t click immediately, but later visits your site and converts (via a search, direct visit, or another touchpoint).

For example, a user scrolling a tech blog sees your display ad for a wireless headphone. They don’t click, but 3 days later, they search “best wireless headphones” and buy yours. That’s a display-driven conversion—you just need to track it (more on that later).

This doesn’t mean display can’t drive direct clicks and conversions, though. The issue usually boils down to misalignment: between your audience, your creatives, or how you’re nurturing users after they see your ad.

4 Common Reasons Your Display Ads Aren’t Converting (And Fixes)

Let’s tackle the biggest culprits...and how to fix them with programmatic tools.

1. Your Audience Targeting Is Too Broad (or Irrelevant)

This could be the #1 mistake. Advertisers use “spray-and-pray” targeting for display, casting a wide net in hopes of reaching “someone” interested. But broad targeting means your ads end up in front of users who don’t care about your product, leading to low engagement and zero conversions.

Signs this is your issue: High impressions, low click-through rate (CTR < 0.1%), and no post-view conversions.

How to fix it:

Narrow to intent-driven audiences: Ditch generic demographics (e.g., “25 to 34-year-olds”) for audiences with actionable intent. Use programmatic to target:

- Site visitors (retargeting): Users who’ve already been to your site (e.g., viewed a product page but didn’t buy) are 70% more likely to convert than new users.

- Interest-based segments: Focus on users actively engaging with topics related to your product (e.g., “fitness equipment buyers” for a workout app, “small business owners” for accounting software).

- Lookalike audiences: Use your best customers (those who’ve converted before) to build a “lookalike” group; programmatic platforms will find users with similar behaviors.

Test audience segments: Split your budget between 2–3 segments (e.g., retargeting vs. lookalikes) and double down on the one driving the most post-view or post-click conversions.

2. Your Creatives Are Static (or Don’t Speak to Your Audience)

Static banner ads (think: a plain image with text) blend into the background, especially when users are scrolling through articles or apps. Even if your targeting is on point, a boring ad won’t stop them long enough to engage.

Signs this is your issue: Low CTR, high bounce rate on landing pages (if users do click), and no post-view activity.

How to fix it:

Ditch static, test video or interactive creatives: Programmatic display supports more than just images. Video ads have 2x higher engagement than static ads, while interactive ads (e.g., a quiz, a “swipe to see more” feature) keep users involved longer.

- Example: A clothing brand could use a short video showing their new collection in action, or an interactive ad where users “try on” sunglasses by swiping.

Lead with value, not features: Your ad should answer “What’s in it for me?” For example:

- Bad: “Our CRM has 10+ features.”

- Good: “Cut your admin time by 50% with our CRM.”

Align creatives with your audience’s stage: If you’re targeting first-time visitors, focus on awareness (e.g., “Meet the app that simplifies budgeting”). If you’re retargeting cart abandoners, use urgency (e.g., “Your cart is waiting, 20% off ends soon”).

3. You’re Not Tracking Post-View Conversions (So You Miss Results)

As we mentioned earlier, most display conversions are post-view, but if you’re only tracking post-click conversions (users who click the ad and convert immediately), you’re missing 60–70% of your display-driven results. This makes your ads look like they’re underperforming when they’re actually working.

Signs this is your issue: Few to no post-click conversions, but steady traffic from direct or organic search (these could be post-view users).

How to fix it:

Set up conversion tracking for post-view activity: Use your programmatic platform’s pixel to track:

- Post-click conversions: Users who click the ad and convert within 30 days.

- Post-view conversions: Users who see the ad (but don’t click) and convert within 7–30 days (adjust the window based on your sales cycle, longer for big-ticket items like cars, shorter for impulse buys like snacks).

Use attribution modeling: Instead of giving all credit to the last click (e.g., a search ad), use a “multi-touch” model that credits display for its role in the user’s journey. For example, if a user sees your display ad, then clicks a search ad, both channels get credit for the conversion.

4. You’re Not Retargeting Users Who See (But Don’t Click) Your Ads

Even if a user doesn’t click your display ad, seeing it builds brand awareness. But if you don’t follow up with them, you’re letting a warm lead go cold.

Signs this is your issue: High post-view traffic to your site, but low conversion rates on those visits.

How to fix it:

Create a retargeting campaign for “view-through” users: Use programmatic to target users who’ve seen your display ad but didn’t click. Serve them a follow-up ad with a stronger offer (e.g., “Saw our wireless headphones? Get 15% off your first order”).
Pair display with email (if you have their info): If the user signed up for your email list before, send a follow-up email referencing the ad (e.g., “We noticed you checked out our new workout gear—here’s a free shipping code”).
Keep messaging consistent: Make sure your follow-up ads/emails use the same visuals or offers as the original display ad—this builds recognition and reminds users why they were interested.

A Quick Win: Test One Fix First

If you’re feeling overwhelmed, start with one change: Optimize your retargeting audience. Retargeting is the easiest way to see quick conversion wins with display, since you’re targeting users who already know your brand.

Here’s how to do it in 3 steps:

Use your programmatic platform to create a “site visitors” segment (exclude users who’ve already converted).
Serve this segment a retargeting ad with a clear CTA (e.g., “Finish your purchase” for cart abandoners, “Learn more” for product page visitors).
Track post-click and post-view conversions for 2 weeks. You’ll likely see a 20–30% lift in conversion rates compared to broad targeting.

How GatherStar Helps with High-Converting Ads

GatherStar’s programmatic platform takes the guesswork out of ad optimization, especially for advertisers focused on results. Our tools let you:

Target high-intent audiences (retargeting, lookalikes, interests) across 15K+ verified publishers.
Serve dynamic creatives (video, interactive) that adapt to user behavior.
Track both post-click and post-view conversions with real-time reporting, so you never miss a result.

Final Thought

Display isn’t a “set-it-and-forget-it” channel. It works best when you target users with intent, use creatives that stop them scrolling, and track the full journey (not just clicks). By fixing these common issues, you’ll turn your display campaigns from “meh” to a reliable conversion driver, one that complements your other programmatic efforts.

If you’re looking to craft more effective, AI-driven ad experiences, start with GatherStar today. And if you want dedicated expert support to maximize your results, reach out to the GatherStar team to explore how we can help elevate your programmatic campaigns.