Google Search vs. Display Ads for Lead Generation,Which Performs Better?

Choosing between Search and Display ads is one of the most important decisions in any online lead-generation strategy. Both have unique strengths—Search excels at capturing high-intent demand, while Display builds awareness at scale. Let’s break down performance metrics, best use cases, integration strategies, and how Lead Magno helps you leverage both effectively.

1. Search Ads: Capturing High-Intent Leads:

Search ads serve users actively looking for solutions. This intent translates into significantly higher CTRs and conversion rates compared to Display campaigns.

• Average CTR for Search across industries is 3.17%, compared to just 0.46% for Display .

• Average conversion rate (CVR) for Search is 3.75%, while Display only achieves 0.77%, and e‑commerce is even lower at 0.59% .

Search ads reach qualified prospects at the moment they’re ready to act—making them ideal for lead generation campaigns.

2. Display Ads: Building Awareness & Filling the Funnel:

Display ads don’t drive clicks like Search but are powerful for building awareness and retargeting:

• Google’s Display Network reaches 90% of internet users across 35 million sites .

• Retargeting Display ads can improve conversion likelihood by 70% .

• After seeing a Display ad, users search 59% more, which boosts conversions .

Display is best used for top-of-funnel visibility and building trust with audiences that aren’t actively searching yet.

3. Click-Through Rate Comparison:

Here’s a breakdown of CTR performance:

NetworkAverage CTRSearch3.17 %  Display0.46 %

Search ads benefit from the inherent user intent—they show up when users are looking for answers, making them more clickable than banner-style Display ads .

4. Conversion Rate Comparison:

Display ads don’t just lag in CTR—they also experience lower conversion rates:

• Search: ~3.75% overall; e-commerce is ~2.81%.

• Display: ~0.77% overall; e-commerce ~0.59% .

That’s a 6–7× difference in lead efficiency, making Search the go-to medium for direct lead capture.

5. CPC and Cost-Per-Acquisition:

Average costs per click:

• Search CPC: $2.69

• Display CPC: $0.63

However, Display’s lower conversion rates often mean a higher cost-per-acquisition (CPA)—average Display CPA is $75.51, compared to $48.96 for Search WordStream.

6. When to Use Each—and When to Combine:

• Use Search: When prospects are actively looking for your solution. It drives immediate, high-quality leads .

• Use Display: For brand awareness, reaching new audiences, and retargeting those who engaged but didn’t convert—90% reach with strong Display potential.

• Combine for Maximum Impact: Start with Display to build awareness, then retarget interested users via Search. Asif Ali advises a coordinated funnel using both .

7. Retargeting: Display’s Silver Bullet:

Retargeting bridges the gap between awareness and conversion:

• Display retargeting CTR: 0.7%, vs standard Display CTR of 0.07%.

• Retargeted users are 70% more likely to convert.

By serving ads to those who’ve engaged—website clicks, video views, or search—Display becomes a powerful conversion tool.

8. Strategic Funnel Integration:

An ideal funnel structure looks like:

1. Display Ads introduce your brand to broad audiences.

2. Retarget Display to re-engage interested prospects.

3. Search Ads capture intent-driven traffic for direct conversions.

4. Use Customer Match on Display to nurture existing leads.

This layered approach ensures your funnel covers every step from awareness to purchase.

9. Use Cases by Campaign Type:

• Search Ads: Best for service providers, B2B offers, and high-ticket items—users searching for “CRM software demo” are ready to convert

• Display Ads: Great for e‑commerce, visual products, app installs, and remarketing cold traffic—especially when used with creative ad formats .

10. Quality Score & Ad Relevance:

Search ads benefit from Quality Score, which boosts ad rank and lowers CPC when ads are relevant.

Display ads don’t use Quality Score directly, but prioritizing viewable, well-targeted creatives improves performance significantly .

11. AI Advancements in Ads:

Google’s ramping up AI across both networks:

• Search: AI Overviews will soon feature ads in search summaries .

• Display: Tools like Performance Max use AI to optimize across formats, boosting reach and impact .

AI automation is making ads smarter—especially when integrated through a platform like Lead Magno.

12. Choosing What Works Best for You:

• Budget-conscious? Start with Search for efficient CPA.

• Need visibility first? Begin with Display brand awareness.

• Want both?Use coordinated campaigns and retargeting.

Lead Magno aligns both channels into automated funnels—capturing Search leads and nurturing them with Display follow-ups.

13. The Lead Magno Advantage:

With Lead Magno, you get:

• Unified campaign setup for Search and Display

• Automated retargeting flows via Display

• Follow-up automation for Search form leads

• AI-triggered creative & bidding suggestions

• Dashboard to track CPL, CPA, and ROI across channels

No more juggling platforms—just coordinated, conversion-first campaigns.

14. Final Takeaways:

• Search ads outperform Display in CTR, conversion rates, and lead quality

• Display ads build awareness and excel at retargeting

• Using both in a smart, layered funnel maximizes ROI

• AI tools and platforms like Lead Magno automate and optimize your campaigns end-to-end

Next Steps:

1. Audit your current campaigns and adjust budget allocation

2. Add retargeting display ads to your Search campaigns

3. Use AI-powered tools (like Lead Magno) to automate bidding, creative, and audience targeting

4. Continuously A/B test ad types, messaging, and audiences

Ready to Master Search + Display Lead Funnels?

Let Lead Magno set up and optimize both campaign types, automate follow-ups, and track results transparently.

👉 Book your free demo today: leadmagno.com/zill