Confused about when to use display ads vs search ads? Learn about the pros and cons of display advertising vs search advertising + how they work together.

There are approximately 2 billion websites and 5.6 billion daily Google searches. Given this massive internet traffic, now is a great time to take advantage of two of the most effective internet advertising methods: display and paid search. 

This article will define these two advertising methods, discuss their pros and cons, and explain how to utilize them to elevate your media strategy and create comprehensive ad campaigns.

According to Asa Crow, a Campaign Analyst at Pathlabs, display ads are visual ads placed on websites throughout the internet to showcase a service or product and link it to a specific website. 

Advertisers commonly use the Google Display Network, which hosts millions of websites where they can place their display ads. Within this display network, Google places ads at the top, bottom, or side margin of web pages or between content. 

These ads most commonly appear as banners and are a great way to grab user attention in various locations on the web. They can also come in the form of static images or videos. Compared to search ads, these are more budget-friendly on the programmatic side. 

To learn about search ads, we spoke to a Evan Jackson, a Paid Search Specialist. According to Evan, search ads are advertisements that specifically appear in search engine results.

When potential customers look for a service or product, they search on Google and receive different search results. Based on the keyword search query, paid search ads appear at the top of these results.

Suppose the advertiser wants to explore more programmatic advertising options with search ads. In that case, they may consider using dynamic search ads, where Google scans the advertisers’ website and automatically creates ads based on the web content. These are then matched and served to relevant searches. 

Search ads are a great way to target potential customers actively searching for what the advertiser is promoting. 

According to Asa, marketers should use display advertising to generate brand awareness. This playing field is attractive and helps advertisers target more users and encourage more conversions. 

Display advertising can also be advantageous when a brand has high visual appeal. In these cases, the attractive banner design or engaging content appeals to the user and pushes them towards clicking the ad.

Additionally, display ads can be retargeted. If there is a customer that engages with a website but does not convert, Google can re-display an ad to this customer on a different website to draw them back in. 

Downsides of Using Display Ads  

Just because display advertising is a standard agency method doesn’t mean it works for every campaign. 

According to Evan, display advertising is not very granular. Google can cast a wide net for these ads in the display network, which is great for awareness. However, more impressions do not particularly mean more conversions. 

Convincing the customer to finish their conversion takes time. According to Evan, retargeting is only successful after two or three tries. However, retargeting the ad multiple times, something many advertisers do, can become bothersome and even intrusive to the customer, discouraging them from buying the product.

When we spoke with Asa, he referred to display ads as a double-edged sword. Given the popularity of display ads, the sheer number of ads presented to a user throughout the day often results in display ads being ignored. 

According to Evan, search ads are an excellent bottom-funnel tactic. Although they can be expensive, they typically convert best, especially for established brands.

Advertisers should use search ads when they want to target customers with high intent to convert. Our CMO Mario calls these the “people leaning in.” 

Users who search for something on Google with relevant keywords are already actively trying to purchase a specific product or service. So with search ads, advertisers can bid on these exact keywords and have their ads appear immediately. 

Downsides of Using Search Ads

A critical difference between search and display advertising is that search ads do an excellent job targeting those leaning in. However, since search ads are limited to search engine results, they aren’t great for generating general awareness. Potential customers need to type in relevant keywords to trigger search ads. 

According to Evan, your search ads are much more likely to be seen if you have a super niche business or particular keywords you are bidding on. However, if you have a brand new business or general service, it will be easier for your search ads to get lost in the weeds.  

Luckily, those who don’t have much experience can rely on dynamic search ads to choose the right keywords and field ads for them. But, this requires a well-written webpage and a need for the advertiser to give up some control.

To utilize a full-funnel approach, agencies should use paid search and display advertising. According to Asa Crow, running search and display simultaneously maximizes reach and leads to great conversion rates. Display maximizes brand awareness, but search converts at a higher rate.

Many advertisers choose one over the other, but both are necessary for the best results. Creating a symbiotic relationship between the ad methods will pull customers from all parts of the funnel. 

If tasked with running a campaign for a sustainable outdoor clothing business, the advertiser would start by trying to target customers at the top of the funnel.

To begin, they may play to their strengths of visual appeal and field display ads on different websites to showcase the clothing options they offer. Customers browsing the web will see these ads and may be quick to click on them and convert. Those who don’t will at least have some awareness of the brand.

Then, suppose another display ad retargets the user. In that case, they may move further into the funnel and fully convert or at least develop a consideration to purchase the clothing.

If they finally form an intent to purchase the clothes, they will most likely look them up on a search engine. This is where search ads can come in. Based on the keywords they type in like, “sustainable clothing for outdoors”, “hiking clothes”, or “earth-friendly outdoor wear”, the search ads will be served to the customer and drive them to the business’s website to make the final purchase. 

As we can see in this example, display ads can help provide awareness at the start to target customers, while search ads can help with this final attempt to get the customer across the finish line and make the purchase. 

Of course, every ad campaign is different, but at the end of the day, search and display ads are some of the most common advertising methods. By utilizing both, it will pull in more traffic and ensure advertisers hit almost all potential customers in their funnel. 

For advertisers who are determined to use display and search ads, these are the best practices recommended by our team. 

Display Ad Best Practices

Know the target audience. Advertisers don’t want their ads to only show up in places where their potential customers may be browsing. The more info and data provided to the ad software, the more likely it targets the right audience

Make ads visually appealing. Display ads are already at risk of being looked past, so the more visually attractive the ad, the higher chance of engagement. 

Make ads brief and to the point. Nobody wants to read a paragraph worth of ad language. Keep it short and include a call to action. 

Add logo and branding. Even if customers that see a display ad don’t convert, they can form an impression that may encourage them to purchase the product or service in the future. Having a recognizable brand will boost their potential to remember the business. 

Paid Search Best Practices 

More audience info = better performance. When using Google Ads, advertisers need to provide the system with keywords, headlines, descriptions, etc. The more quality/relevance included, the better. 

Research and utilize popular keywords. To achieve high SEO and search ad performance, it is essential to look at what competitors are doing and consider the key terms customers may search.

Use as many relevant extensions as possible. Evan recommends using at least four site-link extensions, four call-out extensions, two structured snippet extensions, and a call or location extension, if possible. These additional features will make the ad stand out more. 

Consider using Dynamic Search Ads (DSA). DSAs are a great addition to ad campaigns and help fill the blank between standard display ad methods and SEO. DSAs only require an advertiser to provide their web domain and will then create automated search ads for potential customers. 

Curious about the benefits of working with a media execution partner? Get in touch with Pathlabs to see how we can become an extension of your team. 

Contributors: Jacob Treece, Elias Snyders, Mario Schulzke, Asa Crow, Evan Jackson