In 2024, U.S. brands spent $258.6 billion on online advertising, a 15% jump from the previous year, based on data from the IAB and PwC. That raises the question of display ads vs search ads. Display ads often build awareness, while search ads catch people actively searching.
Industry benchmarks show search ads usually get higher click-through rates, averaging between 3.2% and 6.6%. Display ads, by contrast, often land between 0.46% and 0.57%.
Still, display ads reach many internet users through the Google Display Network, making them strong for visibility while search stays stronger for conversion.
Search is a “pull” channel and displays a “push” to audiences. Businesses, from SaaS to agencies and AEC use both channels. This is why our Nexalab’s ads team has hands-on experience to back this up.
This article breaks down the differences with data and real examples. It helps you know when to pick a display or search or both. So, let’s break it down all here.
What are Display Ads?
Display ads are visual ads on websites, apps and social media. They include banners, videos or interactive elements across the web. These display ads rely on programmatic adtech.
What are Search Ads?
Search ads are text ads that appear on search engine results pages. They show up when people search for specific keywords. These ads look like organic results but include an ad label, headline, link and description.
For a detailed explanation of the Ads landscape, kindly check our review on advertising technology.
Key Differences Between Display Ads and Search Ads
Format
Search ads are plain text; a headline, link and description. They allow extras like sitelinks, but creative space is limited. Display ads, by contrast, use rich media (images or video) for more visual impact.
Want to see how your keywords actually perform? This Google Ads report breakdown explains what to track and why it matters.
Placement
Search ads show only on search engine results pages (SERPs). They appear when someone types a query, usually above or below organic results. Display ads can appear on many sites via networks, like Google’s Display Network alone covers 2M+ sites.
Intent
Search ads target users actively looking for something, which is what these people have intent. Display ads are “push” ads shown to audiences not actively searching. This means search ads drive conversions, while display ads build awareness earlier.
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CTR and CPC
Metrics differ a lot. For example; search CTR is about 3% vs ~0.5% for display, and CPC is about $2.70 vs $0.60. In practice, search ads get fewer clicks that tend to convert, while display ads buy cheaper reach with lower engagement.
Best for
Search ads are best for clear intent, like bidding on a sale. They work well for immediate conversions or capturing demand. Display ads suit broad outreach, like for brand awareness or retargeting past visitors.
When to Use Display Ads?
For any business, the key question is: when to use display ads vs search ads. Display ads shine in top-of-funnel outreach, which is great for brand or new product awareness. For example, display ads can spark interest in a product before someone even searches.
Display ads also excel at retargeting. Use them when visitors leave without converting. For example, if someone viewed a product page, display ads can remind them on other sites.
Display ads allow you to reach very specific audiences or themes. You can target by interest, site topics, or past behaviors. For example, a shoe brand might show ads on fitness blogs to reach likely buyers.
When to Use Search Ads?
Search ads work well when customers have a clear need. A SaaS firm could bid on a relevant keyword to capture ready customers. They capture leads who are ready to act.
They also excel for local or niche searches. For example, a firm might target ‘Sydney architect services’ in local searches. That way, your ad appears exactly when those users search.
However, ad strategy can be tricky, like when to decide using both or one of them. That’s where a digital marketing consultant Australia can help tailor the approach to your goals. This is why you can consider Nexalab ad management service to align ad spend with real outcomes.
Getting it all together
Every business is different; tie your strategy to real goals. Typically, we suggest letting data guide your display ads vs search ads choices. With clear metrics and a plan, you’ll see which mix works best.
Key Takeaways
- Search ads work best when users already know what they want, and you’re ready to meet that demand.
- Display ads are better suited for getting on someone’s radar early, especially if your product isn’t top-of-mind yet.
- The biggest difference between search and display isn’t format. But it’s user intent, and that’s what drives performance.
- What we’ve seen in practice: the most effective campaigns don’t pick display ads vs search ads sides. However, they map the ad type to the business stage and audience readiness.
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