What’s better – search ads or display ads in 2026?

ROI answers

Search ads appear when Australians actively search for products or services on platforms like Google, utilising keyword targeting, while display ads leverage visual creatives across a network of websites and apps, focusing on audience demographics and interests.

  • AI-Powered Bidding: Current systems include fully automated bidding strategies across both ad types, optimising for conversions based on machine learning.
  • Privacy-Centric Targeting: In 2026, Google and Meta now features enhanced privacy controls, requiring first-party data integration for effective personalisation.
  • Dynamic Creative Optimisation (DCO): Both platforms utilise DCO, automatically testing ad variations to maximise performance based on user behaviour.
  • Enhanced Location Targeting: Geofencing and hyperlocal targeting are now standard, allowing businesses to reach customers within specific Australian postcodes or even building perimeters.

As of early 2026, the ‘better’ option depends heavily on your business goals. Search ads generally deliver higher intent and quicker ROI for direct response campaigns, but are often more competitive and expensive. Display ads excel at brand awareness and reaching wider audiences, and are becoming increasingly effective with improved targeting capabilities, though require longer campaign durations to optimise. Australian businesses must also be aware of the evolving digital privacy landscape and ensure compliance with updated ACCC guidelines regarding data collection and usage.

Rather than navigating these complex technical requirements yourself, you can simply reach out to our team. At ROI.com.au, we can take care of all this for you—visit our contact page to get started.


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