The Difference Between Display Ads and Search Ads

PPC | August 28, 2024

In the present era dominated by Information Technology, Internet advertising is recognized as one of the most significant pillars of the marketing communication mix. No matter the type of business you own, from small businesses to large conglomerates, the Internet presents an opportunity to reach your intended clientele. While advertising can be effectively executed through various forms of online promotion, two of the most prominent and effective methods are display ads and search ads. This article will delve into display ads vs search ads, comparing and contrasting these two approaches to provide the information needed to determine the most suitable type of advertising for your marketing needs.

The Difference Between Display Ads and Search Ads

What Are Display Ads?

Display ads are regarded as a type of web advertising that uses pictures, films, texts, and graphics to attract the public’s attention. While text-based search ads are almost solely click-based and built around the call to action, display ads are aesthetically driven and aim to capture the visitor’s attention through graphic design and great content.

  1. Visual Elements

    Display ads, with their mix of graphics, images, videos, and text, are designed to captivate users. Whether they appear as small banners or full-screen ads, their visual format gives advertisers the opportunity to create compelling messages that grab the viewer’s attention, making them an engaging form of advertising.

  2. Placement

    Web banners are banners that run across various sites, application interfaces, or social media pages. They are primarily placed within advertisement zones of these websites, including banners at the top or on the web page's side or interstitials interrupting one piece of content with another. The location of display ads generally depends on the ad network or platform, which assigns display ads after analysing a particular website to place the ad with the hope of receiving high visibility from the targeted audience.

  3. Targeting

    Display ads are among the most popular online ads, targeted at demographic, behavioural and contextual data. These are features an advertiser can take advantage of to maximize the chance of viewing their ads by potential consumers. For instance, a business that sells sports gear is likely to reach out to potential buyers who have been using products in the sports and health niche lately or have demonstrated, in any way, a keen interest in sports and other outdoor activities.

  4. Use Cases

    Display ads, with their ability to reach a large audience and their visually appealing nature, are particularly effective for brand awareness campaigns. They help to establish and reinforce the brand's presence in the market. Additionally, they are a powerful tool for retargeting, allowing advertisers to reach users who have previously visited their site or engaged with their content.

What Are Search Ads?

Search ads are a form of web advertising displayed at the search engine results pages (SERP). Unlike display ads, which are graphical in nature, search ads are textual and, more importantly, triggered by relevant keywords that users type into the search engines.

  1. Text-Based Nature

    Search ads usually contain the headline, a short written statement about the product or service being offered, and the URL of the advertiser's website. They are generally short and targeted to deliver to the user information that more or less corresponds to the search phrase. Traditionally defined display ads are less appealing to the eye than search ads because the latter are text-based but are generally more relevant to the search query.

  2. Intent-Based Targeting

    One of the key advantages of search ads is their ability to target users based on their specific search queries. When a user enters a search term, relevant search ads may appear at the top or bottom of the results page. This intent-based targeting helps advertisers connect with users who are actively seeking products or services similar to what the advertiser offers, making search ads a highly effective tool for reaching a ready-to-act audience.

  3. Placement

    As the name suggests, these are placed on the search engine results pages (SERPs), commonly at the top or bottom of the SERPs above or below the actual search results. The locations awarded to place search ads depend on the bid amount the advertiser is willing to offer, the quality of the ad, and the relation the ad has with the search terms used by Internet users.

  4. Use Cases

    A popular kind of paid advertising, search ads are very useful in generating responses from the desired users, more specifically, specific users who perform searches related to the provided keywords. Qualified because search ads reach users based on their search interest, they are highly appropriate for targeting users who are willing to make a purchase or perform a given activity, for instance, subscribe to a newsletter or get a quote.

  5. Audience Targeting

    The distinctive feature of display ads and search ads is in audience targeting methods. As with display ads, the objective is to cover as many people as possible, addressing users regarding demography, behaviour and context. This makes them perfect for impression-driven activities and when the goal is to reach out to the broad and a random public. The other advertising category, the search ads, works when the target audience searches for a particular product or service. Therefore, they are deemed to perform better regarding direct conversion.

  6. Ad Format

    Formats of display advertisements include images, videos, and rich media, which makes display advertisements more attractive to users. Search ads are brief and usually only text-based, and they aim to provide useful information to users, depending on what they are searching for. The difference in format reflects the different goals of each ad type: display ads are designed to attract consumers’ attention and familiarize them with the brand. On the other hand, search ads are intended to give relevant information that would appeal to the consumer and induce him to purchase the product.

  7. User Intent

    Unlike Full-page Ads, Display Ads pop up in the middle of the content the user is reading, and these users may not be searching for the product or service being advertised. Therefore, a display ad entails the presentation of a suitable image to attract the user's attention. On the other hand, search ads focus on users with a certain intent by performing a search query related to the advertising product or service. It makes the search ads even more efficient in getting high-convert audiences willing and ready to act.

  8. Performance Metrics

    The KPIs for display ads and search ads are also different. In display ads, the common measures are impressions, click-through rate (CTR), engagement time on the website, and so on. Search ads are usually evaluated based on click-through rates, conversion rates (the number of users who perform a certain action after clicking the ad), and CPC.

  9. Cost Structure

    There is an important cost difference between display ads and search ads cost models. Banner adverts may be charged on the cost per thousand impressions, which means advertisers are charged every time the ad is displayed, whether or not the image is clicked on. Search ads can be used with a cost-per-click (CPC) model in which the advertiser only pays each time a user clicks on the ad. This difference in cost structure reflects the different objectives of each ad type: display ads as an approach intended to deliver advertisements to a generic public. In contrast, search ads are designed to lead people into certain behaviours.

Display ads are used when:

  1. Brand Awareness

    Out of all the types, display ads are perfect for raising brand awareness and targeting many users. They are best used for calls for awareness, whereby an organization seeks to create an image and make its brands known in the market.

  2. Remarketing

    Registration ads are also useful for remarketing since advertisers can target people who visited their website or seen some content before. Thus, the potential buyer is already interested in the products or services being advertised, increasing the chances of making a sale.

  3. Reaching a Broad Audience

    Display ads are common when coverage is more critical than the specific search intention. This makes them desirable for companies that want to create brand recognition or introduce a new product in the market since the chances are high that a substantial number of people will come across the advert.

When to Use Search Ads

  1. Targeting Specific Intent

    Search ads, on the other hand, are very effective in targeting relevant, high-intent users who are searching for similar products and services. They can be quite effective for this purpose since customers are targeted according to their searches and are capable of producing the desired conversion rates on the spot.

  2. Driving Conversions

    Search ads are especially effective when it comes to immediate calls to action—making a purchase or filling out a form. Due to the targeted audience that is keen on the advertiser’s products or services, search ads are more influential than display ads.

  3. Operations in a highly competitive market

    Search ads can also target competitors directly by having your ads appear in searches made on search engines. By advertising next to or above the competitor’s adverts, the advertisers can be certain that individuals interested in the competitor’s products will also likely become interested in the advertiser’s products.

Combining Display ads with search ads

  1. Integrated Campaigns

    Utilizing both ad formats – display and search ads – in closely connected digital campaigns brings certain advantages. Such a channel enables the advertiser to achieve the greatest outreach and the best market coverage while focusing on the search ads, which deliver boiling leads directly into the advertiser’s hands.

  2. Synergy Effects

    The collaboration between display and search ads can also enhance the overall performance of the campaigns. As a cross-selling and upselling tool, Display ads can even enhance the performance of Search ads. By implementing display ads to create awareness, whereas search ads target potential customers with high intent to make a purchase, the advertiser gets a full-package marketing technique that leads to branding and the sale of products.

Conclusion

Lastly, it is seen that display ads and search ads can be effective depending on the context and imply different scenarios and should not be utterly dismissed in the framework of a comprehensive media strategy. When the goal is to generate exposure to the brand and float awareness about the brand, then display ads can be beneficial. At the same time, it is more appropriate to use search ads for people interested in targeting clients who are already searching for specific services and products. Unless a business is particular in its marketing needs, it can be helpful to understand the benefits of each type of advertisement and use them for the most successful results. If you want to get more from your advertisements, consider using Google Ads marketing services to improve the effectiveness of your advertisements.

FAQ

  1. Q: How do display ads target audiences?

    A: These kinds of banners focus on the audience based on demographics, past activity, interests, and website content. Some messages can be delivered based on the websites that a particular user has visited, the content that he or she has engaged in, or interest groups.

  2. Q: In what ways does search advertising focus on its intended audience?

    A: The search ads market is reached through the keywords used in a search engine by the targeted audience. Businesses can pay for specific keywords and have their ads appear in the sidebar of a search engine when users search for those terms.

  3. Q: What is the main aim of the display ads?

    A: The primary goals of display ads are user awareness, a large coverage area, and the use of graphics. They are also useful for retargeting when people have tested the water and shown interest in certain products or services.

  4. Q: What is the main purpose of search ads?

    A: The key function of search ads is to track users' intentions and willingness to buy. When these kinds of ads appear when a user specifically looks up something, they are more likely to make a click and potentially a sale.

  5. Q: How do display ads charge advertisers?

    A: Sponsored banners usually make advertisers pay based on impressions; thus, some people pay based on the number of times the advertisement appears, in thousands, for instance, CPM, which denotes ‘cost per thousand’.

  6. Q: In what way are the search ads billed to the advertisers?

    A: Almost all search ads work on a cost-per-click basis, which means the advertiser pays for the ad only when it is clicked. This method of working is inexpensive in terms of gaining traffic, as it is a performance-based model.

  7. Q: Which is better: which type of ads do you prefer, display ads or search ads?

    A: When it comes to targeting, the primary difference is between display ads and search ads, and the most effective depends on your goals. Display ads are perfect if you want to work extensively on the top of the funnel and use branding as your strategic goal. Search ads are equally effective if you want to go for intent and get action.

  8. Q: Can display ads and search ads be used together?

    A: Indeed, both display and search ads can be used to form the overall digital marketing strategy. With display ads, you establish interest within your audience; with search ads, you capture interest and action toward the conversion.

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hardik-mody

Hardik Mody

Hardik Mody is a Senior Manager in Digital Marketing. He plans and coordinates the marketing activities of ValueHits, a full-service Digital Marketing Agency in Mumbai, India. With his experience and Expert knowledge in the field, he identifies potential customers and develops marketing campaigns. Also, he is efficient enough to meet the client’s requirements and well-organized in handling multiple tasks.