Difference Between Google Search Ads and Display Ads

If you run ads on Google Ads, you have probably seen two main types of ads: Search Ads and Display Ads. Both are part of the same advertising platform, but they are used for different goals in digital marketing.

Understanding the difference between Google Search Ads and Display Ads helps you improve your campaign results, reach the right audience, and create a more effective advertising strategy.

Search Ads vs Display Ads

Here is an exploration of the difference between Search Ads and Display Ads and how each one is used in online advertising.

Feature	Google Search Ads	Google Display Ads
Platform	Google Ads Search Network	Google Display Network
Intent	High user intent	Low/passive intent
Format	Mostly text ads	Image, banner, video
Targeting	Keywords	Audience, interests, demographics
Placement	Search engine results pages	Websites, apps, YouTube
Cost	Higher CPC	Lower CPC
Best For	Conversions and leads	Brand awareness and remarketing

takeaway:

• Search Ads capture existing demand from users actively searching for solutions.
• Display Ads create demand by introducing your brand to new audiences.

Search ads generally deliver higher conversion rates (~4.2%), while display ads average around 0.55% conversion rate because they target users earlier in the buying journey.

What Are Google Search Ads?

Google Search Ads are text-based advertisements that appear at the top or bottom of search engine results pages (SERPs) when users search for specific keywords.

They run on the Search Network, which includes Google search results and partner sites.

Example search query: “best CRM software”

You will typically see sponsored results labeled “Ad” or “Sponsored” above organic results.

Characteristics of Search Ads

• Triggered by keywords
• Appears on SERP pages
• Usually text-based
• Uses Pay-Per-Click (PPC) bidding
• Targets high-intent users

Example

Why Search Ads Work

Search ads capture existing demand because users are actively searching for solutions.

This is known as intent-driven marketing.

What Are Google Display Ads?

Google Display Ads are visual ads that appear on websites, mobile apps, YouTube, and Gmail through the Google Display Network (GDN).

The Google Display Network includes over 2 million websites and reaches more than 90% of internet users worldwide.

Unlike search ads, display ads are shown based on audience targeting rather than search queries.

Characteristics of Display Ads

• Visual formats (images, banners, videos)
• Displayed across websites and apps
• Audience-based targeting
• Often used for remarketing

Example

You visit an e-commerce site and later see ads for the same product on a news website. That’s display advertising in action.

Search Ads vs Display Ads: Core Differences

1. User Intent

The biggest difference is user intent.

Search Ads → Pull marketing
Display Ads → Push marketing

Search ads appear when users actively search for solutions, while display ads appear when users are browsing unrelated content.

Type	Intent
Search Ads	High intent
Display Ads	Low or passive intent

2. Ad Format

Search ads are usually text-based, while display ads use visual creatives.

Format	Search Ads	Display Ads
Text	✔	✔
Image	✖	✔
Video	✖	✔
Interactive	✖	✔

Display ads often include:

• Banner ads
• Animated graphics
• Rich media
• Video ads

3. Targeting Method

Search ads target keywords, while display ads target audiences.

Targeting	Search Ads	Display Ads
Keywords	✔	Optional
Demographics	✔	✔
Interests	Limited	✔
Behavior	Limited	✔
Remarketing	✔	✔

Display advertising excels in behavioral targeting and retargeting campaigns.

4. Placement and Reach

Search ads appear only on search results pages, while display ads appear across the web.

Placement	Search Ads	Display Ads
Search engines	✔	✖
Websites	✖	✔
Apps	✖	✔
YouTube	✖	✔

Display ads therefore have much broader reach, while search ads are more targeted.

5. Cost and Performance

Search ads typically have:

• Higher CPC
• Higher conversion rates

Display ads typically have:

• Lower CPC
• Lower conversion rates

Average benchmarks:

Metric	Search Ads	Display Ads
Conversion rate	~4.2%	~0.55%
CPC	~$2.41	~$0.59

Marketing Funnel: Where Each Ad Type Works Best

A strong PPC strategy uses both ad types across the marketing funnel.

Top of Funnel (Awareness) – Best: Display Ads

• Brand awareness -Display ads introduce your brand to new audiences.
• Product discovery -Helps users learn about your products or services.
• Audience building -Builds a pool of potential customers for future campaigns.

Middle of Funnel (Consideration) – Best: Display Ads + Retargeting

• Remarketing campaigns -Reconnect with users who previously visited your site.
• Content promotion -Shares helpful content to engage potential customers.
• Lead nurturing -Guides interested users toward making a decision.

Bottom of Funnel (Conversion) – Best: Search Ads

• Purchase intent -Targets users ready to buy with keyword-based ads.
• Lead generation -Drives signups, inquiries, or contact form submissions.
• Booking or signups -Encourages immediate action from interested users.

Advantages and Disadvantages

Here we explain the key advantages and disadvantages.

Advantages of Search Ads

• High conversion rates
• Strong keyword targeting
• Captures purchase intent
• Immediate traffic

Disadvantages of Search Ads

• Higher CPC
• Limited reach
• Highly competitive keywords

Advantages of Display Ads

• Massive reach
• Strong visual branding
• Lower cost per click
• Effective for remarketing

Disadvantages of Display Ads

• Lower conversion rates
• Ad blindness
• Requires strong creatives

When to Use Google Search Ads

Search ads are ideal when:

• You want immediate conversions
• You target high-intent keywords
• You sell problem-solving products
• Your marketing goal is lead generation

Example industries:

• SaaS
• Local services
• eCommerce
• Legal services

When to Use Google Display Ads

Display ads are ideal when:

• You want brand awareness
• You launch a new product
• You run retargeting campaigns
• You have a long sales cycle

Example industries:

• eCommerce
• Education
• Automotive
• Travel

Best Strategy: Combine Search and Display Ads

The most successful PPC campaigns use both ad types.

A typical strategy:

• Use Display Ads to generate awareness
• Retarget visitors with Display remarketing
• Convert them using Search Ads

This creates a full-funnel paid media strategy.

Best Practices for Search and Display Campaigns

Search Ads Best Practices

• Use high-intent keywords
• Optimize Quality Score
• Create compelling ad extensions
• Align ads with landing pages

Display Ads Best Practices

• Use strong visual creatives
• Test multiple banner formats
• Use remarketing lists
• Refresh creatives regularly

Entities Related to Search and Display Advertising

Technologies and platforms:

• Google Ads
• Google Display Network
• Google Analytics
• Google Tag Manager

Digital marketing concepts:

• Pay-Per-Click (PPC)
• Remarketing
• Conversion Rate Optimization
• Audience Targeting
• Search Engine Marketing (SEM)

Conclusion

Understanding the difference between Google Search Ads and Display Ads is essential for building an effective PPC strategy.

Search ads capture existing demand, while display ads build brand awareness and nurture audiences.

The most successful marketers don't choose one over the other they combine both to guide customers through the entire marketing funnel.

Frequently Asked Questions