Determining whether search or display ads are ‘better’ in 2026 depends on the campaign objective, as they function via fundamentally different mechanisms: search ads target users actively seeking specific information, while display ads aim to build awareness by showing visuals to a broader audience.
As of December 2025, Google Ads remains the dominant platform for both in Australia. Search ads, utilising the Google Search Network, operate on an auction system where advertisers bid on keywords. In 2026, Performance Max campaigns now integrate with both Search and Display, using AI to optimise bids and ad placements across both networks. Display ads, delivered via the Google Display Network, reach users across millions of websites, apps, and YouTube. Currently, the Display Network offers various targeting options including demographic, interest-based, and remarketing lists. Google’s Privacy Sandbox initiatives, rolling out throughout 2026, are impacting display ad targeting by phasing out third-party cookies, shifting focus to first-party data and Google’s Topics API. The cost of both ad types varies significantly based on competition and targeting, with search typically more expensive per click. Australian businesses must also adhere to ACCC guidelines regarding misleading or deceptive advertising in both formats.
Ultimately, both search and display ads operate as auction-based systems within a broader AI-driven advertising ecosystem, each designed to reach users at different stages of the buying journey.
