If you're weighing up search ads vs display ads, the short version is this: search ads catch people who are actively hunting for what you sell, display ads put your brand in front of people who aren't searching yet. Both can work. They just do very different jobs, and picking the wrong one is how budgets quietly disappear.
This guide breaks down what each format actually is, what they cost on average, where they shine, and how to decide which one (or both) deserves your money.
Key takeaways
- Search ads appear when someone types a query into Google. Display ads appear as banners and images on websites, apps and YouTube across the Google Display Network.
- The average CPC for search ads is roughly £1.23, compared with £0.59 for display ads.
- Search ads win when intent is high and the sales cycle is short. Display ads win when you need to build awareness or visually demonstrate a product.
- Search ads give you tight control over who sees your ad through targeting, which cuts wasted spend.
- Many businesses end up running both, but only after they're clear on what each campaign is for.
What search ads actually are
Search ads are the text adverts you see at the top of Google when you search for something. They're built from three main pieces: a headline, a description, and a display URL. You can bolt on ad extensions too, things like sitelinks, callouts and structured snippets, which give the person extra information before they even click.
The key thing about search ads is intent. Someone typing "emergency plumber Manchester" or "accountant for limited company" is already in buying mode. You're not interrupting them. You're showing up at the exact moment they've raised their hand and asked for help.
That's why search ads tend to convert. The audience has done the hard bit themselves.
What display ads actually are
Display ads are the image and video adverts you see scattered across millions of websites, news sites, blogs, apps and YouTube videos. They're visual rather than text-led, and they appear next to content someone is reading or watching, not in response to a search.
That changes the dynamic completely. The person seeing a display ad wasn't looking for you. You're putting yourself in their line of sight in the hope they'll notice, remember, or click through later.
Display is built for awareness, visual storytelling and remarketing. It's a softer sell, and you usually need more impressions to get a result.
The cost difference, and why it matters
This is where the maths gets interesting. The average CPC for search ads is £1.23. For display ads it's £0.59.
That's a big gap. A search click costs you roughly four times what a display click does.
The trade-off is conversion rate. Display ads have a lower average conversion rate than search, which makes sense, the audience is colder. But because the click is so much cheaper, display can still earn its keep, especially if you're working with a tight budget or trying to stretch ad spend further.
So it isn't "search is better, display is worse". It's "what are you actually trying to do, and which cost profile fits that goal".
Search ads vs display ads at a glance
| Factor | Search ads | Display ads |
|---|---|---|
| Where they appear | Google search results | Websites, apps, YouTube across the Display Network |
| Format | Headline, description, display URL, extensions | Images and video |
| Average CPC | £1.23 | £0.59 |
| User intent | High, the person is actively searching | Low, the person is browsing other content |
| Best for | Capturing demand that already exists | Building awareness and visual demonstration |
| Sales cycle fit | Short cycles, quick decisions | Longer cycles, considered purchases, remarketing |
When search ads are the right call
Search ads are the right move when:
Your product has a short sales cycle. If people decide quickly, say they need a locksmith, a same-day courier, a dentist, you want to be there at the moment of need. You don't need to keep advertising to them afterwards. Search captures the decision and that's the end of the journey.
You want tight control over who sees your ad. Search lets you target by age, gender, interests, location and more, so you only appear in front of people who are most likely to buy or use your service. That control is what makes search efficient. You're not paying to be seen by everyone, you're paying to be seen by the right people.
Your budget is small and you can't afford waste. Yes, search clicks cost more, but each one is worth more too. If you've only got a few hundred pounds a month, putting it behind high-intent searches is usually safer than spraying display impressions across the web.
You sell something people search for by name or problem. "Emergency electrician", "VAT registered accountant", "buy mountain bike helmet". If there's a clear query, search is built for it.
A practical example: a Manchester body shop running search ads for "car body repair near me" is meeting a customer at the exact moment of need. Display ads for the same business would mostlyy be wasted because nobody scrolls past a banner ad and books a panel respray on impulse.
When display ads are the right call
Display ads are the right move when:
Your product or service is visual. If it sells through images and video, home decor, furniture, adventure holidays, restaurants, fashion, entertainment, display gives you the canvas to show it properly. A text headline can't do justice to a sofa or a zip-line tour. A photo can.
You're building awareness in a market that doesn't know you yet. New brand, new product, new region. Display gets your name in front of relevant audiences before they ever think to search for you. By the time they do search, you're already familiar.
You're remarketing to people who already engaged. Someone visited your site, didn't buy, and now you want to nudge them back. Display is perfect for this. Cheap impressions, repeated exposure, gentle reminder.
You've got a longer sales cycle. B2B services, considered purchases, anything where people need a few touchpoints before they're ready. Display keeps you in the picture across that decision window.
How to decide for your business
Walk through these questions honestly:
- Are people already searching for what I sell? If yes, search is probably your starting point.
- How long does it take someone to decide? Short and decisive points to search. Long and considered points to display, or a combination.
- Does my product need to be seen to be understood? If a photo or video does most of the selling, display has a real role.
- What's my budget? Smaller budgets usually do better on focused search campaigns than thinly spread display ones, unless you've got strong creative.
- Do I already have website traffic I'm losing? If so, display remarketing is one of the highest ROI things you can run.
Most businesses end up using both eventually, but layered, not lumped together. Search to capture demand. Display to build awareness and pull lapsed visitors back. Each campaign with its own goal and its own budget, not one undifferentiated pot.
The mistake that wastes the most budget
The single biggest waste we see is businesses running display ads expecting search-style results. They see the cheap CPC, get excited, pile in, and then wonder why the conversions don't follow. Display clicks are cheap because the intent is low. That's the deal.
The reverse mistake is running search ads with no plan for what happens after the click. A great ad sending traffic to a slow, vague landing page burns money fast. If you're paying £2.41 a click, the page that click lands on has to do its job. That's usually where a proper look at your conversion rate and how to calculate it earns its money back, often more than tweaking the ads themselves.
It's also worth auditing your campaigns regularly. Match types drift, audiences go stale, creative tires out. If you're spending on Meta as well, the same applies, here's a walkthrough of how to audit your Meta ad account and maximise ROAS that translates well to Google too.
A quick word on tracking
Whichever format you run, you need to know what's workinng. That means conversion tracking set up properly, landing pages that load fast, and a clear sense of cost per acquisition, not just cost per click.
A £0.59 display click that never converts is more expensive than a £2.41 search click that does. The headline CPC numbers are useful as a starting point, not a verdict.
Where IceBoxDesigns comes in
We run paid campaigns for UK businesses across both search and display, and we're honest with clients about where the money should actually go. Sometimes it's pure search. Sometimes it's a search and display split with remarketing layered on top. Sometimes it's neither, and the real issue is the landing page.
If you'd like a straight answer on what mix your business should be running, our paid advertising service is where to start. We'll look at your goals, your sales cycle and your budget, and put together a plan that fits, not a generic Google Ads package.
Frequently asked questions
Are search ads or display ads better for a small business?
For most small businesses with limited budget, search ads are the safer starting point because they target people already looking to buy. The CPC is higher at an average of $2.41 compared with $0.59 for display, but the intent is far stronger so each click is worth more.
Can I run search ads and display ads at the same time?
Yes, and many businesses do, but they should be separate campaigns with separate goals and budgets. Use search to capture active demand, and display for awareness or remarketing to people who already visited your site. Mixing them into one campaign makes it hard to tell what's actually working.
Why is the average CPC so much lower for display ads?
Because the audience is colder. Display ads appear next to content someone is browsing, not in response to a search, so the person hasn't shown buying intent. Lower intent means lower competition for the click, which means a lower cost. The trade-off is a lower conversion rate.
When should I avoid display ads?
Avoid display ads if your product needs urgency, has a very short sales cycle, and isn't visual, things like emergency services or specific local trades. In those cases your budget is almost always better spent on search ads that catch people at the exact moment they need you.
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