Search Ads vs Display Ads: Differences, Benefits and Use Cases
In digital marketing, the decision between Search Ads vs Display Ads can significantly impact your advertising strategy. Understanding the strengths, weaknesses, and ideal use cases for each can help businesses make more informed decisions. Whether you’re a marketer or a business owner, mastering the nuances of both ad types is critical for driving optimal performance and achieving your campaign objectives.
Why Understanding the Differences is Important
Knowing the unique advantages of search ads and display ads enables advertisers to:
- Make informed decisions about which ad types to use based on specific campaign goals and target audience attributes. Having clarity on ideal use cases guides ad investment.
- Allocate budgets effectively across search and display channels to match the campaign objectives and audience targeting for each. Optimizing spending can improve overall results.
- Combine both ad formats as part of a comprehensive digital marketing strategy. A coordinated approach can maximize reach and conversion potential across customer journey stages.
Search Ads and Display Ads: A Quick Comparison
Understanding the differences between Search Ads vs Display Ads can help marketers tailor their campaigns effectively. Here’s a quick comparison to illustrate the core distinctions:
| Criteria | Search Ads | Display Ads |
|---|---|---|
| Ad Format | Text-based, typically appearing on SERPs | Visual (images, videos, banners) shown across websites/apps |
| Targeting | Intent-driven based on keyword searches | Audience-driven based on behavior and interests |
| Objective | Lead generation, conversions | Brand awareness, retargeting, visibility |
| Cost Structure | Pay-Per-Click (PPC) | Pay-Per-Impression (CPM), PPC in some cases |
| Placement | Search Engine Results Pages (SERPs) | Google Display Network, social media, third-party sites |
| Conversion Rate | Generally higher due to intent | Typically lower but excellent for broad exposure |
| Audience Reach | Narrow and specific to search terms | Broad, reaching users across the internet |
What are Search Ads?
Search Ads are text-based ads that appear on search engine results pages (SERPs) when a user searches for keywords related to your products or services. They allow advertisers to target users who are actively searching for information or solutions. Search ads are highly targeted and are generally paid for on a Pay-Per-Click (PPC) basis, meaning you only pay when someone clicks on your ad.
The biggest advantage of search ads is their intent-driven nature. When a user types in a query, they are actively looking for information, a product, or a service. This level of intent means that search ads tend to have higher conversion rates compared to other forms of digital advertising.
For example, if someone searches for the “best laptop for gaming,” they are likely to be far along the buying journey. A search ad promoting a high-performance gaming laptop at this stage can directly influence the decision-making process.
The Benefits of Search Ads
- Reaching Users with High Purchase Intent: Search ads put your brand in front of users who are looking for your specific products or services. The fact that they are actively searching indicates a higher conversion potential if you meet their needs.
- Targeting Specific Keywords and Queries: You can target niche long-tail keywords tailored to your specific offerings and optimize different ad text and landing pages for various search queries. This level of relevance is powerful.
- Measurable Results and ROI Tracking: Search ads make it easy to track conversions and analyze performance data like click-through rate (CTR), impressions, clicks, cost-per-click (CPC), and keyword metrics. Their direct response nature provides clear ROI measurement.
- Lower Budget Requirements: Search ads can work well for businesses with smaller budgets looking to generate leads and sales. Costs are driven by bids and competition level for keywords, allowing flexibility.
Use Cases for Search Ads
- Supplementing Organic Traffic: Search ads help attract additional qualified visitors who are searching for your brand terms alongside your organic rankings. Paid search expands visibility.
- Capturing Relevant Leads and Customers: Whether it’s a B2B software company or a home insurance provider, search ads can drive high-quality leads by capturing users actively seeking solutions.
- Promoting Products with Short Sales Cycles: Search ads are ideal for advertising products that people tend to buy quickly after searching, such as discounted items, daily deals, downloads, and SaaS subscriptions.
- Reaching Local Audiences: Target local keywords to connect with customers searching for businesses in your area. Location extensions also help drive foot traffic to physical stores.
- Promoting Time-Sensitive Services: Search ads can help advertise services needed urgently by users, such as emergency plumbing services, tax prep help, medical appointment booking, and more.
What are Display Ads?
Display ads are image, video, and text ads that appear on third-party websites, social media platforms, and apps. They allow advertisers to reach new audiences by targeting users based on their interests, demographics, browsing behavior, and more. Display ads also provide more flexibility for visual storytelling.
Display ads work well when the goal is to reach a broad audience or increase visibility. For instance, a company launching a new product might use display ads to generate buzz and introduce the product to potential customers who may not even be aware that they need it yet.
The Benefits of Display Ads
- Increasing Brand Awareness and Visibility: Display ads promote your brand to new audiences across platforms where your brand may not already have an organic presence. Visuals and multimedia help grab attention and increase visibility.
- Creative Flexibility: Display allows for more formats, such as images, videos, GIFs, and native ads. This gives you more flexibility for visual storytelling and engaging users beyond text ads.
- Retargeting Capabilities: Remarket to users who previously visited your website, product pages, or blog by tracking users with cookies and showing them relevant ads as they browse elsewhere.
- Reaching Niche Audiences: You can target very specific user groups and demographics on social media, relevant blogs/websites, mobile apps, and niche placements. The display provides more audience segmentation options.
- Ad Format and Placement Options: Options like banner ads, native ads, video ads, mobile ads, and social media ads help you reach audiences at scale across multiple touchpoints. You can diversify placements.
Use Cases for Display Ads
- Brand Launch: Display ads are an excellent way to introduce a new brand or product to a wide audience.
- Visual Product Promotion: Display visuals and videos to showcase products where visuals matter more, such as clothing, jewelry, travel destinations, food, etc.
- Increasing Brand Awareness: Use display ads on niche websites and placements to build awareness among relevant audiences who may not actively seek or know your brand yet. Get on their radar.
- Reaching Users with Long Sales Cycles: Engage high-value users across the buyer’s journey with display ads as they research and compare expensive or considered purchases. Stay top of mind.
- Expanding to New Geographies: Use geo-targeting to reach users in locations where your brand doesn’t rank well organically yet. Introduce your brand to new markets.
Key Differences Between Search Ads and Display Ads
Targeting and Intent
- Search ads target users who are actively searching for products, services or information related to your business. These users have high purchase intent as they are looking for solutions or information to fill a need.
- Display ads reach users based on interests, demographics, behaviors, and placement targeting. They are better for increasing brand awareness among passive users who may not be actively searching, and their intent is lower than that of search ads.
Placement and Visibility
- Search ads appear on SERPs, above or below organic results, when a user searches for relevant keywords. They are highly visible to searchers scanning the page for information.
- Display ads appear on third-party sites, apps, and networks based on placement targeting criteria set by the advertiser. Their visibility depends on factors like ad placement on the page, format, and the engagement of the creative assets.
Ad Formats
- Search ads typically appear as text-based listings, often with a title, description, and URL. The focus is on providing relevant and concise information to users.
- Display ads can take various visual formats, such as banner ads, video ads, or interactive ads. The emphasis is on creating eye-catching and engaging visuals to capture the user’s attention.
Conversion Rates and Click-Through Rates
- Search ads tend to have higher conversion rates, as searchers already have buying intent when clicking on them. The motivation to purchase is higher.
- Display ads generally have lower conversion rates immediately, but they can be more cost-effective for brand building. The focus is on awareness and engagement rather than direct response.
Cost Structure
- Search ads are typically priced on a cost-per-click (CPC) basis, where the advertiser pays each time a user clicks on the ad.
- Display ads are often priced on a cost-per-impression (CPM) basis, where the advertiser pays for every 1,000 impressions (views) of the ad.
Performance Metrics
- Search ads are generally more effective in driving immediate clicks and conversions, as users are actively searching for relevant products or services.
- Display ads may have lower click-through rates but can be effective in building brand awareness and driving long-term conversions.
Search Ads vs Display Ads: Key Factors to Consider
Campaign Goals and KPIs
First, identify your campaign goals and key performance indicators (KPIs) you want to impact—like lead generation, traffic growth, brand lift, etc. This clarity will inform your ad strategy.
Target Audience and Buyer Journey Stage
Select ad types based on your target customer profiles and their stage of the buyer journey. Use search ads to convert ready-to-purchase customers and display ads to nurture potential buyers.
Budget Constraints
Factor in costs per click and impression, level of competition for keywords/placements, ad capabilities per platform, and your budgets. Allocate the budget accordingly.
Strategies for Using Search and Display Ads Together
Complementary Approach
Use search ads to convert users at the bottom of the funnel while display ads increase awareness at the top. Tailor strategy by funnel stage.
Cross-Channel Optimization
Remarket across search, display and social while sequencing ads across stages. Support the customer journey with cross-channel consistency.
Analyze Performance Data
Closely review metrics and attribution data across search, display and other channels to identify optimization opportunities and make improvements.
Final Thoughts
In the battle of Search Ads vs Display Ads, there isn’t a clear winner. Each type has its unique strengths, making them suitable for different marketing objectives. Search ads are excellent for driving direct conversions, thanks to their intent-driven nature, while display ads shine in raising awareness and retargeting potential customers. By leveraging both, businesses can create a well-rounded, effective advertising strategy that caters to all stages of the customer journey.
Frequently Asked Questions
What are the main differences between search and display advertising?
The main differences are that search ads target users who are actively searching with high intent to purchase, while display ads increase brand visibility among audiences through placement targeting. Search ads appear on SERPs while display ads appear across websites, apps and social platforms.
When should I use search ads?
Use search ads when wanting to capture relevant searches and traffic with higher intent. They work well for supplementing organic reach, generating leads, promoting urgent services, and advertising products with shorter sales cycles. Optimize search ads for converting ready buyers.
When should I use display ads?
Use display ads when your goal is brand awareness and visibility. They are ideal for visually-driven products, targeting niche markets, reaching new geographies, and engaging users across a longer buyer’s journey. Display nurtures potential buyers.
How can I track the performance of search and display ads?
Key metrics for search ads include impressions, clicks, CTR, conversions, cost per conversion, ROI, and keyword metrics. For display, measure impressions, clicks, CTR, viewability, frequency and conversion actions. Compare ROI across channels.
Should I use search or display ads for retargeting?
You can use both search and display ads to retarget visitors to your website. Search retargeting targets users based on past queries, while display remarketing shows ads across sites based on past site behavior and engagement levels.
What bid strategies can I use for search and display ads?
For search, you can set manual CPC bids, target CPA, maximize clicks, and enhance CPC bidding. For display, there are options like target CPA bidding, CPM bidding, viewable CPM, and maximize conversions bidding. Test strategies.
How much do search and display ads cost?
Search and display costs are based on bidding models. For search, you typically pay per click based on your bids and competition for keywords. For display, you pay per impression or click, depending on the bidding model. Actual costs vary based on targeting and competition. Monitor and optimize costs.
