In 2025, choosing between Search Ads and Display Ads in Google Ads is a crucial decision for digital marketers. Both formats are effective—but only when used at the right time, with the right goal, and for the right audience.
- 1. What Are Google Search Ads?
- 2. What Are Google Display Ads?
- 3. Key Differences Between Search and Display Ads
- 4. When to Use Search Ads
- 5. When to Use Display Ads
- 6. Cost and Performance Expectations
- 7. Combining Search and Display Ads for Better Results
- 8. Bidding and Budget Strategy
- 9. Tools to Support Search and Display Campaigns
- 10. Common Mistakes to Avoid
- 11. Case Study: Booking.com
- 12. Which Ad Format Is Best for You?
- References
This article explores the differences between Search and Display Ads, when to use each, how they impact performance and budget, and how to combine them into a powerful full-funnel strategy.
1. What Are Google Search Ads?
Search Ads are text-based ads that appear on the Search Engine Results Page (SERP) when users type relevant keywords into Google. They’re triggered by user intent and show only when someone is actively searching.
Example: A user types “affordable web hosting,” and Search Ads show paid results before organic listings.
These ads run on the Google Search Network, which includes:
- Google Search
- Google Maps
- Google Shopping
- Google Play
- Search partners like YouTube
Search Ads focus on capturing existing demand and work best for people ready to take action (Google Ads Help, 2023a).
2. What Are Google Display Ads?
Display Ads are visual ads—usually banners, images, or rich media—that appear across websites, apps, and YouTube within the Google Display Network (GDN). This network reaches over 90% of global internet users (Google, 2023a).
These ads are shown to users passively as they browse content, rather than through search queries. They’re effective for building awareness, retargeting, and reaching people who match certain audience profiles.
Examples of placements include:
- News websites
- Blogs
- YouTube videos
- Gmail Promotions tab
- Mobile apps
(Google Ads Help, 2023b)
3. Key Differences Between Search and Display Ads
| Feature | Search Ads | Display Ads |
| User Intent | High (active search) | Low (passive browsing) |
| Ad Format | Text only | Images, banners, video |
| Placement | Search results pages | Websites, apps, YouTube |
| Targeting | Keywords, location, device | Audience, interest, demographics |
| Goal | Conversion | Awareness, remarketing |
| CTR | Higher (3–5%) | Lower (0.5–1%) |
| CPC | Higher | Lower |
(WordStream, 2023)
4. When to Use Search Ads
A. For High-Intent Searches
Search Ads are best when users are actively looking for a product or service.
Example keywords:
- “Buy running shoes online”
- “Top HR software for SMEs”
- “Affordable car insurance Phnom Penh”
These queries suggest a user who is ready to convert.
B. For Direct Response Marketing
Use Search Ads to:
- Generate leads
- Drive online sales
- Encourage sign-ups
- Promote local services
C. When Budget is Limited
If your budget is small, Search Ads help you reach people most likely to convert, making them more cost-efficient.
5. When to Use Display Ads
A. To Build Brand Awareness
Use Display Ads when launching a product or expanding reach. They’re ideal for:
- New brands
- Seasonal promotions
- Market expansion
B. For Retargeting
Display Ads are effective for showing ads to users who visited your site but didn’t convert.
Example: A user browsed your online store but didn’t check out. Display Ads can remind them of the product as they browse other sites.
C. To Target Specific Interests or Demographics
With Display Ads, you can reach users based on:
- Age
- Gender
- Income
- In-market behaviour
- Custom intent (e.g., people researching “digital cameras”)
(Google Ads Help, 2023c)
6. Cost and Performance Expectations
Search Ads
- CTR: 3% to 5% (higher due to intent)
- Average CPC: $2–$4
- Conversion Rate: Often higher
Display Ads
- CTR: 0.5% to 1%
- Average CPC: Often below $1
- Conversion Rate: Lower unless retargeting is used
(WordStream, 2023)
7. Combining Search and Display Ads for Better Results
Step 1: Capture Intent with Search Ads
Start with Search Ads to target people looking for your offering.
Step 2: Remarket with Display
Use Display Ads to stay in front of users who visited your site or clicked your Search Ads but didn’t convert.
Step 3: Expand Audience with Display Targeting
Add affinity or in-market segments to reach similar users and expand awareness.
Step 4: Use Consistent Messaging Across Both
Keep your brand, offer, and call to action consistent to build trust.
8. Bidding and Budget Strategy
| Goal | Recommended Strategy |
| Immediate conversions | Search Ads with Target CPA or Maximise Conversions |
| Long-term brand growth | Display Ads with Maximise Impressions or CPM |
| Retargeting | Display Ads with Target ROAS |
| Awareness + performance | Run both with separate budgets |
Use the Google Ads Performance Planner to simulate results based on your strategy.
9. Tools to Support Search and Display Campaigns
| Tool | Purpose |
| Google Ads Editor | Manage campaigns in bulk |
| Semrush | Keyword and competitor research |
| Canva | Create display banners |
| Google Analytics 4 | Track cross-channel conversions |
| Google Tag Manager | Manage event tracking |
10. Common Mistakes to Avoid
❌ Mixing Search and Display in the same campaign without strategy
❌ Using Display Ads without audience filters
❌ Neglecting conversion tracking across both networks
❌ Failing to test different creative formats
❌ Using the same message for passive and active users
Set up separate campaigns and adjust creatives and goals accordingly.
11. Case Study: Booking.com
Booking.com combines Search Ads to capture travel-intent queries (e.g., “hotels in Siem Reap”) and Display Ads to retarget users browsing their listings.
This strategy led to a 38% increase in conversions and 20% lower cost per acquisition across channels (Google, 2023b).
12. Which Ad Format Is Best for You?
| Situation | Recommended Ad Type |
| Lead generation | Search Ads |
| Product launch or awareness | Display Ads |
| Small local business | Search Ads |
| Retargeting website visitors | Display Ads |
| Full-funnel strategy | Both, with audience separation |
Note
Search and Display Ads are not rivals—they’re teammates. Search Ads are perfect for capturing demand from people ready to act, while Display Ads are excellent for building brand visibility and re-engaging past visitors.
When planned and executed strategically, a combination of both can help businesses reach the right person, at the right time, with the right message—maximising impact across every stage of the customer journey.
More Read
References
Google Ads Help. (2023a). About Search campaigns. https://support.google.com/google-ads/answer/1704371
Google Ads Help. (2023b). About Display campaigns. https://support.google.com/google-ads/answer/2404191
Google Ads Help. (2023c). Targeting settings for Display campaigns. https://support.google.com/google-ads/answer/117579
Google. (2023a). Google Display Network overview. https://ads.google.com/intl/en/home/campaigns/display-ads/
Google. (2023b). Booking.com: Reaching travellers with Search and Display. https://www.thinkwithgoogle.com/intl/en-apac/marketing-strategies/search/booking-case-study/
WordStream. (2023). Google Ads Benchmarks for 2023. https://www.wordstream.com/blog/ws/2023/04/17/google-ads-benchmarks
