Search vs. Display Ad Performance: Which Strategy Is Right for You?

Understanding the difference between search and display ad performance will help you use them both for more successful results. Search ads target users who search for specific products or services. They’re likely to have higher conversion rates, but higher costs as well. Display ads rely on visual placement to build brand awareness and pull in traffic, but they typically have lower conversion rates.

In the Wild West of the World Wide Web, search and display ad metrics are like panning for gold. There are no guarantees you’ll get what you’re looking for! But if you understand the good, the bad, and the ugly of both formats, you can rely less on chance and more on a thoughtful strategy.

Join us as we weigh the pros and cons of both types of ad campaigns. You may decide one ad type makes more sense for your business than the other. Or, you may decide a more balanced approach that incorporates and tracks both search and display ad performance makes more sense and allows you to adjust your strategy accordingly to get a higher return on your investment (ROI).

Let’s kick things off by answering common questions.

Frequently Asked Questions

What is display advertising?

Think of display advertising like billboards, but for the web. They’re ads with images, and might include banners and videos on websites and apps. They also target viewers based on their search intent, browsing history, and interests.

The Clorox banner below is a display ad.

What is search advertising?

Search advertising shows ads on search engine results pages (SERPs). The ads are typically text-based and are based on the searcher’s specific query. They can also make use of structured snippets or ad extensions to provide additional details to entice searchers.

The Bank of America and NerdWallet snippets below are search ads.

What is Google Display Network?

Google Display Network (GDN) is a vast collection of over two million websites and apps where display ads can have a temporary home. Display ad performance can be awe-inspiring for driving brand awareness, as GDN encompasses popular Google platforms like YouTube and Gmail, reaching over 90% of global web users¹.

What is the Google Search Network?

The Google Search Network (GSN) is a giant collection of all the websites and apps where search ads can show. The Google search results page is the top dog, but search ads can also appear on places like Google Maps, Google Shopping, and many other websites that partner with Google.

What are the key display ad metrics to watch?

The most important metrics for display ads are their impressions (reach), cost per thousand impressions (CPM), and conversions. How you measure display ad performance might depend on whether your goals are to increase brand awareness or other milestones like sales or sign-ups. 

What are the key search ad metrics to watch?

For search ads, you want to watch their click-through rate (CTR), cost per acquisition (CPA), cost per click (CPC), and conversions. 

Should I use display ads or search ads?

Display ads are more effective at getting more eyes on your brand and generating leads that (hopefully) turn into conversions down the road. Search ads are more effective at driving immediate conversions.

What is the typical targeted demographic for display ads?

Display ads target people who might not be actively searching for your product or service, but who have expressed interest in similar products or services before. The performance of display ads often comes through with time as they get the word out about your business, even if they have a relatively low conversion rate.

What is the typical targeted demographic for search ads?

Search ads target users based on search intent. The conversion rate is higher on average because the user is actively searching for your product or service.

What are the conversion rates of display and search advertising?

Across all industries, the average conversion rate for display ads is 0.55%, and the average conversion rate for search ads is 4.2%².

What is the average cost per click for display ads and search ads?

Across all industries, the average cost per click is $0.63 for display ads and $2.69 for search ads³.

Display Ad Performance: Pros and Cons

Display ad metrics can vary quite a bit depending on things like your industry, who you’re targeting, and how strong the ad is. That said, this approach definitely comes with its own set of pros and cons.

Pro: Drives Brand Awareness

Your ad pops up here and there. Folks might scroll past it at first but after a while, they start thinking, “Hey, I’ve seen this before.” That familiarity builds slowly. Kind of like recognizing someone from your gym before you actually know their name. This can be a long process. Mighty trees take time to establish mighty roots!

Con: You Might Not See Results Right Away

Let’s be honest: display ad performance can feel like a gamble at first. You run them, check the numbers, and wonder if anything’s actually happening. A lot of the time, people seeing your ads aren’t even looking for what you offer. So yeah, conversions tend to be slow. It can feel frustrating, and sometimes, it really might not be worth it.

Pro: They Grab Attention

People notice pictures and videos much faster than just words. Display ads use bright colors, cool photos, and sometimes fun stuff like little games to catch your eye. It’s a simple way to stand out when people are scrolling.

Display ad performance is about more than just showing your product: the ads need to catch people’s eye and make them curious. The trick is to create visuals that really grab attention and pull people in, helping nudge them toward buying.

Take this Razr Ultra video ad on the BBC homepage. It’s quick but shows the phone from all sides, giving you a good look in just a few seconds. It’s like a little teaser that makes you want to see more.

Con: Banner Blindness

If your display ad metrics aren’t up to snuff, it could be due to a phenomenon called banner blindness, which is when users intentionally or subconsciously ignore ads. Creating eye-catching visuals that stand out might help, but many seasoned internet users simply won’t give display ads the time of day. You can’t win ‘em all!

Pro: Deep  Demographic Targeting

Optimizing display ad performance can be done by putting your target audience under a microscope. You can set your display ads to reach ultra-specific users based on their age, gender, income, location, hobbies, and more. You can display ads based on users’ browsing behaviors, such as previously visited sites and interactions with similar ads.

Con: Ad Blockers

Although blocked display ads may not be counted as views or impressions, they do present a significant hurdle for marketers. Approximately 912 million web users use ad blockers⁴, so that’s nearly a billion people who won’t see your ad. With that said, there are 5.56 billion web users worldwide⁵, so there are still well over 4 billion users who can see display ads.

Pro: You’re Paying for Exposure

Although excellent display ad performance isn’t guaranteed, the average cost per click ($0.63) is much lower than that of search ads ($2.69). And, because search ads are often priced by cost per mille (every 1,000 views or impressions), rather than clicks that don’t always lead to conversions, you’re paying a lower price specifically for exposure.

Con: Lower Shopping Intent

Conversions are usually low when analyzing display ad metrics compared to search ad metrics. It makes sense, as search ads target people who are actively searching for your specific product or service, but low conversion rates can still be discouraging. Display ad performance focuses heavily on engagement, so conversions may not happen until much later, if at all.

Search Ad Performance: Pros and Cons

Dive into the strengths and weaknesses associated with search advertising.

Pro: Targets Active Shoppers

The core benefit of search advertising is that it targets web users who are currently searching for highly relevant queries. Let’s say someone who lives in Philadelphia needs a locksmith. A search for “locksmith” shows search ads for local locksmiths.

Like search engine optimization (SEO), search advertising can put you at the top of search engine results pages, making it highly likely that the searcher will click and convert. In short, search ads tend to produce immediate results compared to display ads that take more time to manifest.

Con: Lack of Compelling Visuals

Search ads are traditionally text-based, although Google does offer optional image assets and, more recently, video assets. These basic images can improve your chances of getting a conversion, but they’re not nearly as effective as display ads for driving brand awareness through the use of engaging visuals. Display ads allow for much more creativity.

Pro: Pinpoint Precision for Keyword Targeting

While display ad metrics can vary widely in scope, search ads can target particular queries. 

Let’s say someone needs to get their roof repaired in Los Angeles. Targeting the keywords “Los Angeles roofing company” would be more effective for search ads. 

Display ad performance would be poor for such a specific and timely search request, as the searcher isn’t going to visit an unrelated website that happens to be displaying your ad. Search ads receive immediate clicks because they address immediate needs.

Con: High Competition

There’s a lot of competition for prime spots on search engine results pages, especially for coveted keywords that are proven to rake in conversions.

For example, a search for “buy work boots online” shows search ads with images of boots from multiple retailers and brands.

And, if the searcher clicks on one of those search ads but fails to convert, you’re still paying for the click. Because display ad performance is based more on views and impressions, and because they tend to be cheaper in general, there’s not as much risk of being overshadowed by competitors with bigger budgets and stronger name recognition.

Pro: Trackability and Scalability

While display ad metrics can be challenging to track and quantify, search ad metrics are much more straightforward. When an ad leads to a lot of conversions, you know it. From there, you can reproduce that strategy by creating similar ads and targeting similar keywords. 

And, once a search ad campaign has proven to be successful, you’ll feel more comfortable investing more of your budget into it. Because display ad performance isn’t as straightforward, scaling your strategy can be a gamble. 

Con: Ad Blindness

Just like banner blindness, some savvy searchers will automatically skip the ads at the top of search engine results pages, instead scrolling down to organic results. 

On the other hand, there are many web users who instinctively click the first result in Google’s featured snippets or AI overviews, leading to zero-click searches.

So, are you more likely to get clicks through ads or organic search? Unlike display ad performance, which is based solely on generating views, the behavior of your audience can significantly impact whether a search ad campaign will be successful or fail.

For example, someone who needs a locksmith as soon as possible is more likely to click a search ad. In contrast, someone who needs a fancy recipe for an upcoming dinner party may scroll down the search engine results page until they find a recipe blog that focuses on fine dining.

Pro: Pay-Per-Click Model

Search ads do cost more, but you get what you pay for, which is a guaranteed action: clicks. Display ad metrics are based on views and impressions, but there’s no way to be 100% sure that your ad was viewed at all. Unlike display ad performance, search ad performance is measurable and binary; either you got a click or you didn’t.

Con: Cost and Risk

Although you’re guaranteed clicks, a click isn’t always a conversion. Conversion potential is super high, and that’s why the cost per click is, too. But you can waste cash in a flash if your ads aren’t consistently leading to conversions. That’s why partnering with a reputable paid advertising agency is critical.

Contact Us for a Free Consultation

Both display ads and Google ads require an expert’s touch. Attempting to navigate complex campaigns on your own is a surefire way to burn through your budget and end up with little to show for your efforts.

We consistently deliver exceptional search and display ad performances for our clients. Please review our case studies and client reviews. Whether you’re panning for quick gold or taking the long road to lasting brand awareness, we can help. Contact us now for a free consultation.

References:

1. https://support.google.com/google-ads/answer/117120?hl=en
2. https://databox.com/good-google-ads-conversion-rate
3. https://www.semrush.com/blog/google-ads-cost/
4. https://analyzify.com/statsup/ad-block
5. https://www.statista.com/statistics/617136/digital-population-worldwide/