You see ads of all types across the internet, but what goes on behind the scenes? Discover how search ads (like Google ads) and display ads (like video ads) drive customers to your website.
Search engine marketing (SEM) and display advertising hold big promise for your local business. Search ads capture existing demand, while display ads create and nurture demand.
Let’s take a closer look at how each of these ad types work in this post.
Read our free guide for SMBs, Where You Should Have Ads Online.
Search ads
Search ads target users who are already looking for the type of product or service that you provide.
They’re a good option for local businesses, especially because they provide a relatively high ROI, with businesses making $2 for every $1 spent on Google Ads.
Check out this behind-the-scenes look at how search ads work:
1. User search
The process begins when a user conducts a search for whatever product or service they’re looking for. Let’s take a search for “teeth cleaning,” for example.
2. Auction process
Once the user makes their search for “teeth cleaning,” Google begins the auction process on the backend (the user never sees this process taking place).
This process is what Google uses to determine which ads will appear for that specific search and in which order those ads will show on the page (or if any ads will appear at all!).
The ad auction happens each time an ad is eligible to appear for a search.
Don’t stress too much about your competition (other dentists who also offer teeth cleaning) bidding higher than you. Even if they do, it’s still possible for you to win the higher positioning—at a lower price–with the help of highly relevant keywords.
3. Ad rank calculation
Next comes the ad rank calculation, i.e., the formula Google uses to determine if your ad is eligible to show in the search results, and then if it is, where your ad will be ranked in relation to other eligible ads.
Your ad rank is calculated based on many different factors, including your bid, expected click-through rate, ad relevance, landing page experience, search context, competition, device, time, and even more.
4. Winning ads appear
Once the ad rank is calculated, Google will then display the eligible ads accordingly on the search engine results page (SERP) for the user to see.
5. User clicks
Then, the user (and potential new patient), will (hopefully) click on your ad.
6. Website landing
Once they click on your ad, they’ll be taken to the landing page you’ve set up for that corresponding ad. Like a page that details your teeth cleaning service with the option to call or fill out a form to book an appointment, for example.
7. Pay per click (PPC)
What’s the likelihood that a customer will choose your ad once it’s shown in the SERP? The data tells us the average Google ad conversion rate is 2.85%.
This may seem low, but the good news is that Search ads are pay-per-click ads. Meaning that you only have to pay when a user actually clicks on your ad.
Why do search ads work for local businesses?
A couple of reasons:
- They target users actively searching for what you offer.
- The PPC model is cost-effective and flexible.
- Search ads can drive immediate site traffic and conversions.
Display ads
Display ads work by increasing awareness before users actively search for your services. They combine text, images, and a URL that links back to your website.
Many of the display ads you see today are “remarketing” or “retargeting” ads. These are ads that “retarget” a customer who has been to your site before. This type of advertising is effective because 91% of users like to buy from businesses that remember their interests.
Here’s the process broken down:
1. User activity and interests
Users see display ads while they are browsing the web, exploring social media, or using apps.
2. Ad targeting and placement
While this is happening, display ad platforms (like Facebook or Google Display Network) will analyze user behavior and place ads based on it. So, say the user has made that “teeth cleaning” search a few times lately, or maybe they’ve even clicked on your website before, Google takes that data into account.
3. Ad auction and placement
Similarly to the search ads we just talked about, an auction will happen behind the scenes to determine which ads will appear based on their attributes.
4. Display ad appears
Similarly to the search ads we just talked about, an auction will happen behind the scenes to determine which ads will appear based on their attributes.
5. User clicks
If your ad is appealing to the user, they’ll click on it.
6. Website landing
Which then brings them right to your local business website.
And boom! You’ve just successfully converted a display ad. If you want to give your ad an even better chance at converting, try running video ads, which have an average conversion rate of 4.8%.
7. Pay per click or impression
When it comes to the cost of display ads, you pay either a cost per click (CPC) or the cost per mile/thousand (CPM)—a model where you pay for every thousand times your ad is viewed or “impressed.”
Why do display ads work for local businesses?
There are a few reasons why you might choose to run display ads:
- They build awareness by showing ads to the right users.
- Retargeting remembers users’ interests, bringing them back to your ad.
- Display ads visually engage users to differentiate your local business.
Overall, display ads make up 30% of ad revenue, with 21% attributable to video ads.
Why together is better
Conversion is always the ideal end result with search and display ads! The user experience should be seamless, with your ads weaving their way naturally into every stage of the customer journey.
Use both search and display ads for a powerful, efficient digital marketing strategy. Search ads attract high-intent users who are looking for your services. Meanwhile, display ads build awareness, target a bigger audience, and allow for retargeting—you’re top of mind for future purchases.
Both ads lend your local business a holistic outreach approach. You increase your likelihood of connecting with users at the right times and places — and in the right ways.
Additional Tip: Enlist social ads alongside search and display ads to extend your reach. Users spend nearly 2.5 hours a day on social media.
Contact Hibu for ads that get results
At Hibu, we’re happy to get your ads up and running. Our search and display ad services—both of which are powered by Hibu One—maximize visibility, nurture leads, and accommodate your budget.
We partner with you to pinpoint your ad campaign's nitty-gritty details, from budgeting to metrics to ad design and beyond. And we craft your local business smart ads that are primed to convert!
Contact us at 877-237-6120 or complete our Get Started form for a free consultation.
