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Google Ads6 min readDecember 18, 2025

Search Ads vs. Display Ads: Choosing the Right Format

Learn the strengths of each Google Ads format and when to use them for maximum impact, conversions, and return on investment.

Search Ads vs. Display Ads: Choosing the Right Format

Google Ads offers multiple ad formats, but the two most widely used are Search Ads and Display Ads. At Feo Digital, we strategically combine the strengths of both formats when planning client campaigns. Understanding when to deploy each format is the key to maximizing your advertising ROI.

Search Ads: Capturing Purchase Intent

Search ads appear when users actively search for specific keywords. They capture high-intent traffic — people who are already looking for the product or service you offer. This format typically delivers higher conversion rates and is ideal for lead generation and direct response campaigns. The user is already searching for a solution, and your ad appears at the exact moment they need it.

Display Ads: Building Awareness and Remarketing

Display ads appear across Google's Display Network — millions of websites, apps, and videos. They use visual formats (image or video) and reach users while they consume content. Display ads are excellent for building brand awareness, reaching new audiences at scale, and most importantly, remarketing. You can re-engage users who visited your site but left without converting, keeping your brand top-of-mind as they browse other sites.

When Should You Use Each Format?

Ideal Scenarios for Search Ads

Use search ads when you want to capture existing demand. When users search for specific terms like "SEO agency near me", "e-commerce Google Ads management", or "best CRM software", search ads are the most effective format. They should be your primary choice whenever you need fast results and direct conversions from high-intent traffic.

Ideal Scenarios for Display Ads

Use display ads when you want to create demand or stay top-of-mind with previous visitors. They are effective when launching a new product or service, building brand recognition in a new market, or running remarketing campaigns to win back users who visited your site but did not convert.

Cost Comparison: CPC vs. Cost Per Conversion

Display ads generally have a much lower cost per click (CPC) than search ads — often 50–80% less. However, search ads typically deliver significantly higher conversion rates. This is why evaluating cost per conversion rather than cost per click is essential for determining true value. Cheap clicks do not always mean a good investment — what matters is what those clicks actually produce.

Conclusion: Use Both Formats Strategically

The highest-performing campaigns typically use both formats together in a coordinated strategy. Search ads capture existing demand from users who are ready to act, while display ads build awareness and remarketing keeps your brand in front of interested prospects until they are ready to convert. This integrated approach covers every stage of the marketing funnel and maximizes your total return on ad spend.

Frequently Asked Questions

What is the main difference between search ads and display ads?

Search ads are text-based and appear when users actively search for specific keywords — they capture existing demand. Display ads are visual (image or video) and appear across websites and apps in Google's Display Network — they create demand by reaching users while they browse content, rather than when they are actively searching.

Which ad format has a higher conversion rate?

Search ads generally deliver higher conversion rates because they reach users with active purchase intent. Display ads have lower direct conversion rates but excel at building awareness and supporting remarketing efforts. The most effective advertising strategies use both formats together for maximum overall impact.

What is remarketing and how does it work with display ads?

Remarketing shows display ads to users who have previously visited your website or interacted with your brand. It keeps your business top-of-mind as those users browse other websites, significantly increasing the likelihood they return and convert. Remarketing campaigns typically deliver much higher ROI than standard display campaigns.

How much do Google Display Ads cost compared to Search Ads?

Display ads generally have a much lower cost per click (CPC) than search ads — often 50–80% less. However, search ads typically deliver higher conversion rates. The key metric to compare is cost per conversion rather than cost per click, as that reveals the true value each format delivers for your business.

When should you use display ads instead of search ads?

Use display ads when your goal is brand awareness, when you want to reach users who are not actively searching for your product, or for remarketing to previous website visitors. Search ads are the better choice when you want to capture high-intent users who are actively looking for your specific products or services right now.

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