In today’s online world, businesses utilise various online platforms to reach their target audiences. Among the many digital ad types these platforms have available, search and display ads stand out as some of the most used ad formats.
While both are effective in their own ways and serve different purposes, they take an alternative route in the way that they engage audiences. This brings us to the question that everyone asks — which one is better for my business, search or display ads?
This is a fair question as utilising the wrong one can result in wasted time and resources. This is what this article is all about. We will compare Display Ads vs Search Ads by explaining what each ad type is, their key differences and when businesses should consider using them.
What Are Display Ads?
Display Ads are visual adverts that appear on websites, social media platforms and apps. They are designed to quickly catch a user’s attention as they browse the internet. Display ads can come in various formats such as videos, banners or pop-ups and businesses often use them for brand awareness campaigns.
This ad type aims to engage users who are not actively searching for a product or service. For instance, a user might encounter a display ad for cooking utensils as they are reading a blog about culinary tips. This is what makes them different from Search Ads — the intent behind them, but more on this later.
Display ads are usually shown through ad networks such as the Google Display Network or LinkedIn Audience Network. These display networks allow advertisers to place their ads on partner websites, apps and other platforms that are part of the network. Thanks to the wide reach that this ad format offers, it is effective at engaging users who are not yet familiar with a brand.
What Are Search Ads?
Google Search Ads are text-based ads that appear on search engine result pages (SERPs) when a user enters a query related to the product/service the company advertises. For instance, if you search for “best smartwatches” on a search engine, you’re likely to see paid ads at the top of the results page featuring various brands offering that product.
This is where the beauty of Search Ad campaigns lies — in their ability to capture user intent. This ad type specifically targets individuals who are already actively searching for information, products and services. This makes them highly effective for generating conversions.
In addition, Search ads use an auction-type system. This is where advertisers bid against each other on keywords that are relevant to their business. However, the bid amount is not the only factor considered when determining which ads should display and in what order.
For example, when a user enters a query, the search engine evaluates several factors the bid amount, the relevance of the ad and its quality score to determine in what order it should show up. This process ensures that users see the most relevant ads for their search queries.
Key Differences Between Display Ads Vs Search Ads
Both ad types are a part of Google ads, but they have some key differences between them. Here is a quick rundown:
1. Targeting
The first difference between these two ad types comes in with the type of targeting they use. Display Ads use visuals to spread brand awareness and reach viewers who might not yet know of a product/service. Therefore, they make use of an audience-based targeting system that focuses on factors such as user interests, demographics and past browsing behaviours.
Due to this broad approach, this ad type is ideal for reaching users at the start of a marketing funnel. Whereas Search campaigns take a whole different route. Instead of using an audience-based targeting system, they employ keyword-based targeting. This allows advertisers to tailor their campaigns towards different user queries.
2. Cost
While the cost of a search and display ad can vary, search ads generally have a higher cost-per-click (CPC) due to the competitive nature of keyword bidding. Whereas Display Ads often operate on a cost-per-thousand-impressions (CPM) model. Usually, this is considered more budget-friendly for broader campaigns.
3. Creative Elements
Display Ads make use of visual elements such as images, videos and animations to quickly grab the scroller’s attention. On the other hand, Search advertising campaigns don’t have the same visual appeal as Display Ads. They apply a bigger focus on text-based advertising and user intent, making them an excellent option for capitalising on users with a high purchase intent.
4. Purpose & Campaign Goals
Display ads are great for building brand awareness and are often used in retargeting campaigns as well. That said, Search ads are specifically designed for campaigns focusing on a higher purchasing intent. This makes them ideal for directing users further up the sales funnel and generating leads/conversions.
5. Placement
Like many other factors mentioned on this list, ad placement is one component where these two ad types differ significantly. Display Ads appear across many websites, apps and various social media platforms. Whereas Search Ads only show up in search engines like Google where the user is already actively searching for specific products or services.
Pros & Cons of Display Advertising
Pros:
Broad Reach: Thanks to the Google Display Network, Display ads appear on multiple websites, apps and platforms. In other words, it allows businesses to target a wide audience, making it an excellent choice for brand awareness. It also means your ad has the potential to reach customers at different stages of the buying journey.
Visual Appeal: As mentioned earlier, Display Ads use several visual elements to quickly capture audience attention.
Retargeting: Display Ads are also great for re-engaging users who have visited your website before, but did not necessarily convert to a paying customer — retargeting campaigns.
Cons:
Lower CTR: Compared to Search Ads, Display Ads usually have lower click-through rates.
Banner Blindness: One potential con is that users have seen so many banners/pop-up ads that they ignore and dismiss them almost automatically. Due to this banner blindness, your display ads could potentially fall through the cracks.
Bothersome Reputation: In the past, Display ads were often overused which has resulted in them garnering a somewhat negative reputation. This is also where the banner blindness comes from that is mentioned above.
Pros & Cons of Search Advertising
Pros:
High Intent Targeting: Search Ads are designed to reach users who are actively looking for something. Thanks to the high purchase intent these users exhibit, there is a better chance of a conversion taking place.
Cost-Effective: The pay-per-click (PPC) model that this ad type uses ensures you only pay when someone clicks on your ad. This makes the model more cost-effective compared to other forms of advertising.
Fast Results: Search ads can generate traffic almost immediately after a campaign is launched.
Cons:
Costly Competitive Keywords: While Search Ads are generally considered cost-effective, they can quickly become an expensive endeavour due to the price of some competitive keywords. This is especially true if your ad is not correctly optimised.
Lacks Visual Appeal: Search Ads are solely text-based and lack the visual appeal of Display Ads.
When to Use Display Ads vs Search Ads
Choosing which ad type to pursue depends entirely on your campaign goals.
Display Ads make sense when:
Your main focus is building brand awareness or reaching a large/broad audience. According to research over 2 million websites are included in the Google Display Network.
Your goal is to reconnect with previous website visitors through retargeting campaigns.
You’re primarily advertising products or services that rely more on visual elements.
Search Ads make sense when:
You want to target users with a high purchasing intent.
Your goal is to drive immediate results, such as sales or leads.
You have a set of keywords that align perfectly with user search intent.
To Sum Up
Both Display and Search Ads are powerful tools in the world of digital marketing. Each of them have their own unique strengths, weaknesses and use cases. Display Ads primarily focus on building brand awareness through the use of visual elements.
Whereas Search Ads are unrivalled in gaining high-intent traffic and driving conversions. In the end, your choice of ad type will come down to your marketing goals and your type of business, as well as the audience it targets.
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