Google Search Ads vs Google Display Ads: What’s the Difference and Which One Is Right for You?

What Are Google Search Ads?

Google Search Ads are text-based ads that appear when users search on Google or its search partners.

These ads are triggered by keywords, and they appear on results pages—typically at the top or bottom of the page. The key characteristic of Search Ads is intent. The user is actively looking for something related to your offer.

Use Google Search Ads if:

• You’re targeting people ready to buy, call, or inquire.

• You offer high-intent services like dental implants, home repair, tuition services, or SaaS software.

• You have a limited budget and want every click to be a qualified lead.

Pros:

• Higher conversion rates due to high intent.

• Strong ROI for bottom-funnel offers.

• Easier to track return on ad spend (ROAS).

Cons:

• Cost per click (CPC) is often higher, especially in competitive industries.

• Limited reach—ads only show when someone searches a matching term.

What Are Google Display Ads?

Google Display Ads are visual ads (images, banners, GIFs, or rich media) that appear across the Google Display Network (GDN). This network includes millions of websites, apps, YouTube, and even Gmail.

Display Ads are interruption-based. The user isn’t actively searching—they’re reading an article, watching a video, or using an app.

Use Google Display Ads if:

• You want to raise awareness for a new brand, product, or promotion.

• You’re doing retargeting (showing ads to people who visited your website but didn’t convert).

• You’re looking for broad reach with lower CPCs.

Pros:

• Significantly lower cost per click compared to Search Ads.

• Ideal for top-of-funnel awareness and remarketing.

• Great for visual storytelling (product images, brand creatives, etc.).

Cons:

• Lower intent. Most viewers aren’t ready to take action.

• Click-through rate (CTR) is usually lower than Search.

Discovery Ads vs Display Ads: What’s the Difference?

You might also encounter Discovery Ads, which are often compared to Display Ads. These ads appear in native placements across YouTube, Gmail, and Google Discover feeds.

The key distinction: Discovery Ads are natively styled and personalized based on user signals across Google. They feel more like social media ads and often deliver higher engagement than traditional Display Ads.

If you're running content-driven or lifestyle creative campaigns, Discovery Ads may outperform Display—especially on mobile.

Which Should You Choose Based on Your Goals?

Let’s break it down by campaign objective and recommended format:

• Direct lead generation (e.g. legal, dental, financial services): Go with Search Ads.

• Retargeting past visitors or cart abandoners: Use Display Ads or Discovery Ads.

• Brand awareness or event promotion: Start with Display Ads for broader reach.

• eCommerce product search campaigns: Focus on Search Ads or Shopping Ads first.

Cost Differences: Search Ads vs Display Ads

• Search Ads typically cost more per click, but those clicks are more valuable. For instance, if you’re targeting high-intent queries like “plumber near me” or “buy LED monitor Singapore,” you’re competing with others for top real estate. Expect a CPC of anywhere from $1 to $10+, depending on industry.

• Display Ads usually cost less per click—often as low as $0.50 to $1.00. But you’ll need to run broader audiences and layer in remarketing to drive conversions efficiently.

• CTR (click-through rate) is also higher for Search Ads—often 2% to 5%, while Display campaigns typically range between 0.3% and 1%.

• Conversion rates follow the same pattern. Search Ads tend to convert between 5% to 15%, depending on how tightly your keywords and landing pages are aligned. Display conversions often fall between 0.7% and 2%, unless you're retargeting warm audiences.

So while Display Ads may be more affordable per click, Search Ads tend to deliver stronger ROI per conversion.

Should You Run Both Search and Display Ads?

If budget allows, yes—especially if you have different audience types and funnel stages to cover.

Here’s a sample full-funnel setup:

• Top-of-Funnel (Awareness): Display Ads or Discovery Ads

• Middle-of-Funnel (Consideration): Retargeting with Display

• Bottom-of-Funnel (Conversion): Search Ads targeting specific keywords

For businesses with more mature campaigns, adding a Performance Max campaign can also help, as it blends Search, Display, YouTube, and Gmail placements under a single automated strategy.

Recap: When to Use Each

Let’s summarise when to prioritise Search vs Display in text form.

• Use Google Search Ads when your audience is:

  • Actively looking for a solution

  • Comparing providers or pricing

  • Ready to take action (call, buy, book)

• Use Google Display Ads when your goal is:

  • Brand visibility at scale

  • Retargeting people who didn’t convert

  • Promoting visual offers (event banners, limited-time sales, etc.)

Final Thoughts

Both Google Search Ads and Google Display Ads have their place. The smartest advertisers aren’t picking sides—they’re using both in a complementary way.

Search is about capturing demand. Display is about creating and nurturing demand.

If you’re unsure how to balance your ad spend or build a conversion-focused structure, start with Search, layer in remarketing through Display, and scale into awareness and discovery campaigns once your funnel is tested.

Need help deciding how to structure your Google Ads strategy?

We’ll audit your current campaigns or help you build one from scratch—with clarity around cost, conversion potential, and placement strategy.

→ Book your free strategy consult today.