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What is the Difference Between Search Ads and Display Ads?

by | Feb 22, 2025 | Design

In the world of digital advertising, search ads and display ads are two of the most popular formats businesses use to reach potential customers. Both methods can drive traffic and sales, but they operate in distinct ways and serve different purposes. Understanding the difference between search ads and display ads is crucial for businesses looking to develop a well-rounded advertising strategy.

What Are Search Ads?

Search ads, often referred to as pay-per-click (PPC) ads, appear on search engines when users enter specific queries related to a business’s products or services. These ads are text-based and are typically displayed at the top or bottom of search engine results pages (SERPs). When someone types a keyword related to your business, a search ad may appear, targeting that user based on their search intent.

For instance, if a user searches for “best web design services near me,” a search ad offering web design services would appear at the top of the search results. These ads are highly relevant to the user’s query, making them effective at capturing the interest of potential customers actively looking for a solution.

Search ads are auction-based, meaning advertisers bid on keywords relevant to their business. Each time a user clicks on an ad, the advertiser is charged. The amount charged per click can vary depending on the competition for the keyword.

For businesses, search ads offer the advantage of targeting users who have a specific need and are actively seeking a solution. This makes search ads one of the most effective ways to reach high-intent customers. Learn more about search ads and how they can benefit your business by visiting Agency Results Marketing’s PPC services page.

What Are Display Ads?

Display ads, on the other hand, are visual ads that appear on websites, apps, and social media platforms as banners, images, videos, or interactive media. Unlike search ads, display ads are not triggered by specific search queries but are shown to users as they browse the web. These ads can appear on a wide range of websites, from news articles to blogs and eCommerce sites.

Display ads are primarily designed for brand awareness and engagement. Rather than targeting users based on search intent, display ads use audience targeting strategies such as demographics, interests, and online behavior to reach potential customers. For example, if someone has recently visited a website about fitness or health, they might start seeing display ads for related products, like gym memberships or supplements, as they browse other websites.

While display ads are not as intent-driven as search ads, they still have the potential to drive conversions. Display ads are particularly useful for businesses looking to reach a broad audience or re-engage visitors who have already interacted with their brand. This form of advertising can be less direct but highly effective in increasing visibility and building a brand presence.

To explore more about display ads and how they can help your brand, check out Agency Results Marketing’s services for more insights.

Key Differences Between Search Ads and Display Ads

  1. Targeting:

    • Search Ads: Target users actively searching for specific products or services. The focus is on intent-driven marketing, as these users are already looking for a solution.
    • Display Ads: Target users based on their demographics, interests, and online behavior. Display ads are typically used for broader audience engagement and brand awareness.
  2. Ad Format:

    • Search Ads: Text-based ads that appear on search engine results pages.
    • Display Ads: Visual ads that appear on websites, apps, and social media platforms in the form of banners, images, or videos.
  3. Purpose:

    • Search Ads: Aimed at driving immediate actions such as clicks, conversions, or sales. They are highly effective for bottom-of-the-funnel marketing.
    • Display Ads: More focused on brand awareness, lead generation, and re-engagement. They are effective for top- and middle-of-the-funnel marketing.
  4. Costing:

    • Search Ads: Usually operate on a pay-per-click (PPC) model, where advertisers pay every time someone clicks on their ad.
    • Display Ads: Typically use a cost-per-impression (CPM) model, where advertisers pay based on how often the ad is shown, regardless of whether it is clicked.
  5. Effectiveness:

    • Search Ads: Often yield higher conversion rates since they are targeting users with specific, immediate needs.
    • Display Ads: Are more effective for building awareness and re-engaging users who have already shown an interest in the brand.

When Should You Use Search Ads vs. Display Ads?

Both search ads and display ads have their place in a comprehensive digital marketing strategy. The choice between search and display ads depends on the stage of your customer’s journey and your campaign goals.

  • Use Search Ads if:

    You want to capture users with high intent who are actively searching for solutions. This is ideal for businesses offering services or products that users are likely to search for directly, such as legal services, home repair, or SaaS products.

  • Use Display Ads if:

    You want to increase brand visibility, reach a broader audience, or engage users who have already visited your website. Display ads are ideal for businesses focused on awareness and those looking to nurture potential leads who may not yet be ready to make a purchase.

External Resources on Search and Display Ads

For a deeper dive into how search ads and display ads can work together, check out this helpful article from Google Ads that outlines the key differences and strategies for both types of ads.

Another useful resource is WordStream’s guide on search ads and how they fit into digital marketing strategies.