Digital advertising has become one of the most important investments for Filipino businesses. With more people spending time online, companies have a growing number of opportunities to reach their target audiences. Yet with so many advertising options available, one common question arises: where should you put your money? For many, the choice comes down to search ads or display ads. These two types of campaigns are both offered by platforms like Google, and both have proven effective in different contexts. But they operate very differently, and the results they generate are not the same. Choosing which to prioritize can mean the difference between running an ad campaign that drives leads and sales, and one that drains your budget without delivering real results. Search ads are designed to appear in response to user intent—when someone is actively searching for a solution, product, or service. Display ads, on the other hand, function more like billboards across the web, catching attention while users browse. Neither format is inherently better, but they serve different purposes in the marketing funnel. For Filipino businesses, particularly small and medium-sized enterprises with limited budgets, knowing when to use search ads, when to use display ads, and how to balance the two is critical. In this article, we’ll break down how each type of ad works, the advantages and disadvantages of both, and how to decide where your digital marketing budget will work hardest.
1. What Are Search Ads?
Search ads are text-based ads that appear at the top or bottom of search engine results pages when users enter specific queries. They are powered by intent—if someone searches for “best dentist in Makati,” a dental clinic’s ad may show up right where that user is most likely to click. Search ads allow businesses to reach people at the exact moment they are interested in a product or service, making them ideal for driving conversions.
2. What Are Display Ads?
Display ads are image or banner-based ads that appear across websites, mobile apps, or YouTube. They don’t depend on user intent but instead rely on catching attention as people browse online. Think of them as digital billboards—great for visibility, storytelling, and brand recognition. Display ads can also retarget people who have visited your site before, reminding them of your products or services.
3. Benefits of Search Ads
The strength of search ads lies in their precision. They reach people who are already looking for what you offer, leading to higher-quality traffic. They are measurable, highly targeted through keywords, and provide faster ROI compared to many other ad formats. For businesses in industries with high intent—like legal, medical, or home repair services—search ads are often the most reliable way to generate leads.
4. Benefits of Display Ads
While display ads usually don’t deliver the same level of conversions as search ads, their power lies in visibility and reach. They are excellent for raising awareness, introducing your brand to new audiences, and building familiarity over time. Visual storytelling through graphics, photos, and video also helps businesses stand out, especially in industries like retail, travel, and lifestyle. Display ads are particularly effective for remarketing campaigns that re-engage users who have already shown interest.
5. Comparing Costs and Budget Efficiency
For many businesses, cost is a deciding factor. Search ads typically have higher cost-per-click (CPC) because competition for keywords can be intense. Display ads, by contrast, are usually cheaper per impression, giving businesses more visibility for less spend. However, the higher cost of search ads often results in higher-quality leads. The challenge for Filipino businesses is understanding how their goals align with costs. Companies evaluating ad investments often look at SEO rates in the Philippines alongside paid ad costs, recognizing that combining organic and paid efforts can deliver more sustainable growth.
6. When Search Ads Work Best
Search ads are most effective when businesses want immediate results or when they operate in industries where timing matters. For example, a plumbing service, a clinic offering urgent care, or an e-commerce shop running a flash sale benefits greatly from reaching customers exactly when they are searching. They also work best for competitive, high-value keywords where customer intent is strongest.
7. When Display Ads Work Best
Display ads are better suited for long-term strategies like brand building, awareness campaigns, and remarketing. A travel agency might use display ads to showcase beautiful images of Boracay, planting the idea of a beach getaway in viewers’ minds. Weeks later, when those viewers actively search for flights or hotels, the brand already feels familiar. Display campaigns are also useful for products that rely on visual appeal, like fashion, food, and lifestyle brands.
8. Measuring ROI from Search Ads
Search ads offer direct performance metrics, making it easier to measure ROI. Click-through rate (CTR), cost-per-click (CPC), and conversion rates provide clear indicators of success. If your goal is lead generation, tracking form fills, calls, or purchases tied directly to ad clicks shows whether your budget is well-spent. This clarity is one of the biggest advantages of search ads, particularly for small businesses with tight budgets.
9. Measuring ROI from Display Ads
Display ads are not always about immediate conversions, so measuring ROI requires a different lens. Metrics like impressions, brand lift, and assisted conversions tell the story. A user might see your ad on a news site, not click, but later search for your brand directly and convert. Without display ads, that touchpoint may never have occurred. Businesses that value brand recognition often see display campaigns as foundational for long-term growth.
10. Combining Search and Display for Stronger Results
The truth is that the strongest digital strategies rarely choose between search and display—they integrate both. Search ads capture demand when it already exists, while display ads create demand by planting the seed of interest. For example, a clothing retailer could use display ads to showcase a new collection and then rely on search ads to capture conversions when customers start searching for those items. This holistic approach ensures coverage across the marketing funnel.
Conclusion
Deciding whether to invest in search ads or display ads depends on your goals, industry, and budget. Search ads are best for intent-driven conversions, while display ads excel at building awareness and retargeting. For many Filipino businesses, a hybrid approach that uses both formats strategically is the most effective path forward. Search ensures immediate results, while display nurtures long-term growth. Budget allocation should be guided not just by short-term gains but by overall strategy and sustainability. Businesses also need to look beyond advertising alone. Understanding trends in SEO rates in the Philippines and combining organic strategies with paid campaigns often delivers the most cost-efficient results. For companies that want to maximize their advertising investment, partnering with a trusted digital marketing partner ensures smarter allocation, clearer measurement, and better returns. In the end, the choice isn’t between search or display—it’s about making both work together to amplify your message and drive results.
