When to Use Display Ads vs Search Ads in Your Marketing Strategy
Last updated
Last updated
In today’s digital world, advertising is an essential part of any successful marketing strategy. With many different ad types available, it can be confusing to decide which one will work best for your business.
Two of the most common forms of online advertising are display ads and search ads. Both have their strengths, but they are often used in different ways to achieve specific marketing goals.
In this guide, we’ll explore the key differences between display ads and search ads, and help you understand when to use each type to get the best results for your business.
Before diving into when to use each type of ad, let’s first understand what display ads and search ads are.
Display Ads
Display ads are visual ads that appear on websites, apps, and social media platforms. These ads can be in the form of banners, videos, images, or even interactive content. They are designed to attract attention and get your message in front of people, whether they’re actively looking for your product or not.
How do they work?
Display ads are shown to users based on their interests, behaviors, demographics, or even their previous interactions with your brand. You can target people who have visited your website, those who share similar interests to your current customers, or even people in a specific location.
Where do they appear?
Display ads are typically shown on websites that are part of an ad network, like the Google Display Network (GDN), which includes millions of websites, apps, and video platforms. Display ads can also appear on social media sites like Facebook, Instagram, and YouTube.
Search Ads
How do they work?
Search ads are shown when someone enters a query into a search engine, such as Google, Bing, or Yahoo. The ad is triggered based on the keywords the user types in. If someone searches for "buy running shoes," for example, your ad could appear if you are bidding on related keywords like "best running shoes" or "buy sneakers online."
Where do they appear?
Search ads appear on the search engine results page, typically at the very top or the bottom. The goal is to capture users who are actively searching for information, products, or services that match what you offer.
Display ads are a powerful tool, especially when your goal is to build awareness, engage potential customers, or retarget people who’ve interacted with your brand before. Let’s take a look at some of the best situations to use display ads.
Brand Awareness
Brand awareness is one of the top reasons businesses use display ads. If you’re launching a new product, service, or even a new brand, you want to get your name out there and make sure people recognize it.
Display ads are great for reaching a large audience and grabbing attention. Because these ads are visual, they can showcase your brand’s logo, colors, and messaging, which helps users recognize your brand over time.
Example: Let’s say you’ve launched a new coffee shop in town. You might use display ads to show eye-catching images of your coffee, highlight a special promotion, or simply remind people in your area about your new business. Even if the person isn’t actively searching for coffee right now, they’ll become more aware of your brand, and next time they crave coffee, they might remember your ad.
Retargeting and Remarketing
Another great use of display ads is retargeting or remarketing. This is when you target people who have already visited your website or interacted with your brand in some way but didn’t convert. With display ads, you can remind them of what they were looking at and encourage them to come back and complete a purchase.
Example: If a potential customer adds items to their shopping cart on your website but doesn’t check out, display ads can serve as gentle reminders. As they browse other sites, they might see a banner ad showing the exact products they left behind, nudging them to return and finish their purchase.
Broad Audience Targeting
Display ads allow you to reach a broad audience based on various factors such as demographics, interests, and behaviors. This is perfect when you want to build awareness among people who may not know your brand but fit your ideal customer profile.
Example: If you sell fitness equipment, you can use display ads to target people who are interested in fitness, health, and wellness. Even though they may not be searching for your specific products, these individuals are likely to be interested in what you have to offer. The goal is to create a presence and make people aware of your products.
While display ads are great for awareness and engagement, search ads shine when you need to capture high-intent traffic. People who use search engines are often actively looking for information or solutions. Search ads allow you to meet them where they are in their decision-making process.
Capturing High Intent Traffic
Search ads are ideal for reaching users who are actively searching for specific products or services. Since search ads are triggered by keywords, you’re reaching people who have a clear intent to buy or find something.
Example: If someone types "buy running shoes online," they are likely ready to purchase running shoes. If you sell running shoes, your search ad will show up at the top of the search results. This means you’re targeting someone who is already interested in buying your product and is looking for a solution.
Local Searches and Services
Search ads work especially well for local businesses or service providers who want to target people in a specific location. When users search for products or services “near me,” search ads allow you to appear right when they are ready to make a decision.
Example: If you run a local plumbing business, search ads targeting queries like “plumber near me” or “emergency plumber [city name]” will help you reach users who need plumbing services immediately. The user is likely to call or visit your site within minutes, making search ads a great option for local service-based businesses.
Competitive Targeting
Search ads also allow you to target competitors by bidding on their brand names or related keywords. This can be a smart way to capture customers who are already considering similar products or services.
Example: If you’re a smartphone manufacturer and want to target customers looking for a specific brand like Apple or Samsung, you can bid on keywords related to those brands (e.g., “best iPhone alternatives” or “Samsung Galaxy vs. [your phone brand]”). This can help you attract customers who are in the market for a new phone and might be interested in your brand.
Let’s take a closer look at the key differences between display ads and search ads. Understanding these distinctions can help you choose which ad type will work best for your goals.
Audience Targeting
Display Ads: Target users based on demographics (age, gender), interests (fitness, fashion), behaviors (previously visited your website), and even remarketing.
Search Ads: Target users based on specific keywords they search for. These are highly intent-driven, meaning the user is actively looking for something.
Funnel Stage
Display Ads: Often used at the top of the marketing funnel (TOFU), where the goal is to create awareness and generate interest.
Search Ads: Typically used in the middle or bottom of the funnel (MOFU/BOFU), where the goal is to capture users who are already considering a purchase or decision.
Cost and ROI
Display Ads: Generally, display ads have a lower cost per click (CPC) but a lower conversion rate compared to search ads. They are great for building awareness but might not always lead to immediate conversions.
Search Ads: Search ads typically have a higher CPC, but since you’re targeting users who are actively looking for a solution, the conversion rate is higher.
Now that you understand the key differences, let's go over when to use each type of ad.
Use Display Ads When:
You want to build brand awareness and reach a large audience who may not be actively looking for your product yet.
You’re interested in remarketing people who have interacted with your brand but didn’t convert.
You want to target specific demographics (age, gender, location) or people based on their interests and online behavior.
You’re aiming to engage people in the early stages of their decision-making process.
Use Search Ads When:
You want to target people who are actively searching for your product or service, with high intent to purchase or take action.
You’re focused on driving immediate conversions, such as sales or lead generation.
You have a clear understanding of the keywords people use when searching for your product or service.
You are targeting local searches or people who are in immediate need of your service.
In many cases, using a combination of both display and search ads can deliver the best results. Here’s how you can integrate both into a cohesive strategy.
Multi-Channel Approach
Using display ads for awareness and search ads for conversions creates a powerful strategy. For example, you can run display ads to reach a broad audience and get your brand in front of people. Then, when they start searching for solutions related to your product, you can target them with search ads that drive them toward a conversion.
Cross-Platform Campaigns
If you’re running ads across multiple platforms (e.g., Google Display Network, Facebook, YouTube), be sure to use both search and display ads. For example, someone may see your display ad on a website, and then later search for your brand on Google and click on your search ad.
Both display ads and search ads have their own advantages and ideal use cases. Display ads are great for building awareness, engaging a broad audience, and retargeting potential customers.
On the other hand, search ads are highly effective when it comes to targeting people with high intent who are actively searching for your products or services.
To get the best results, you should understand your business goals, the stage of your sales funnel, and the type of audience you want to reach. In many cases, using both types of ads in a complementary strategy can help you achieve long-term success and drive measurable results.
Search ads, on the other hand, are text-based ads that appear on search engine results pages (SERPs) when someone searches for specific terms. These ads are often found at the top or bottom of search results and are marked with a small "Ad" label.
