What Is the Difference Between Search Ads and Display Ads?
What Is the Difference Between Search Ads and Display Ads?
Google Search Ads appear in search results when people actively search for keywords, delivering high-intent clicks at $1–$50 CPC with 2–5% conversion rates. Display Ads appear as banners across 2 million+ websites in Google’s Display Network, delivering broad reach at $0.50–$3 CPM but only 0.5–1.0% CTR. Search captures existing demand while Display creates awareness and supports retargeting.
How Do Search and Display Ads Compare?
| Feature | Search Ads | Display Ads |
|---|---|---|
| Placement | Google search results | 2M+ websites, apps, YouTube |
| Format | Text-based (RSAs) | Image, video, responsive |
| User intent | High (actively searching) | Low (passive browsing) |
| Average CTR | 3–7% | 0.4–0.8% |
| Average CPC | $1–$50 | $0.50–$3 |
| Average CVR | 2–5% | 0.5–1.0% |
| Best for | Capturing demand | Creating awareness, retargeting |
| Budget priority | Primary (60–80% of budget) | Secondary (10–20%) |
Search Ads should be the foundation of most Google Ads accounts because they reach people with demonstrated purchase intent. Display Ads complement Search by maintaining visibility during the consideration phase and retargeting people who did not convert on their first Search click.
When Should I Use Search Ads?
Use Search Ads when people actively search for your product, service, or category. This includes: direct product searches (“CRM software”), comparison searches (“best CRM for startups”), problem searches (“how to manage customer data”), and brand searches (your brand name). Search Ads work for virtually every business type because they target demonstrated intent. If someone types a query into Google, they are actively seeking information or a solution — your ad appears at the exact moment of need.
When Should I Use Display Ads?
Use Display Ads for three primary purposes. First, retargeting — showing banner ads to people who visited your website but did not convert. Display retargeting is one of the highest-ROAS Google Ads tactics, delivering 2–5x better conversion rates than cold Display prospecting. Second, brand awareness — reaching a large audience at low CPM to build familiarity before they search. Third, competitive conquesting — placing your ads on competitor websites or industry publications where your target audience browses.
Should I Run Both Search and Display Campaigns?
Yes, but with clear budget prioritization. Allocate 60–80% of budget to Search (capturing active demand) and 10–20% to Display (retargeting and awareness). Never combine Search and Display in the same campaign — the audience intent and performance benchmarks are fundamentally different. Run them as separate campaigns with separate budgets and optimization strategies. Performance Max campaigns combine Search and Display automatically, which works well for e-commerce but makes performance analysis difficult for other verticals.
How Does Display Advertising Compare to Meta Ads?
Google Display Network and Meta Ads serve similar awareness and retargeting functions but through different channels. Meta reaches users in social feeds (higher engagement, more immersive), while Display reaches users on third-party websites (broader reach, lower CPM). Meta Ads typically deliver higher CTR and engagement. Display Ads deliver broader reach at lower cost per impression. For retargeting, both are effective — the best approach uses both channels to maintain omnipresent visibility. Leo optimizes between Google Display and Meta for retargeting, ensuring maximum coverage without excessive frequency.