Google Search Ads vs Display Ads vs Performance Max: Which Should You Use?

Google Ads offers multiple campaign types. Beginners often choose based on what Google suggests during setup or they spread their budget across everything hoping something works.

The right campaign type depends on buyer intent, budget, tracking quality, creative assets and where your business is in the funnel. Get it wrong and you spend money on the wrong traffic. Get it right and you capture demand efficiently.

For most Melbourne small businesses, the safest first Google Ads campaign is not the fanciest one. It is usually a focused Search campaign with clean tracking and tight intent.

This guide covers what each campaign type does, when each works, when each wastes money and what most Melbourne SMBs should start with.

Which Campaign Type Should You Start With?

Use Display if:

• You want to stay in front of past website visitors (remarketing)

• You have visual offers (events, hospitality, ecommerce)

• You want brand awareness, not immediate high intent leads

Use Performance Max if:

• Conversion tracking is clean and producing meaningful data. See our tracking setup guide first.

• You have strong creative assets (images, video, ad copy)

• Ecommerce product feed is solid

• You can tolerate less control in exchange for automation

For how these fit into budget allocation, see the recommended split in our Google Ads cost guide.

The Big Difference: Intent, Interruption and Automation

Search = Intent

Someone is actively searching for what you sell. "Emergency plumber Melbourne." "Dentist near me." "Google Ads agency Melbourne." These people have a problem and want a solution now. Your ad appears in the search results because you bid on relevant keywords.

Display = Interruption / Reminder

Someone is browsing a website, reading news, checking email or watching YouTube. Your ad appears as a banner, image or video because they match an audience you're targeting or they've visited your site before. They weren't searching for you. You interrupted them.

Performance Max = Automated Cross Channel

Google uses your conversion goals, creative assets and audience signals to serve ads across Search, YouTube, Display, Gmail, Maps and Discover. You provide the ingredients. Google decides where and when to show them.

Search gives you control over intent. Display gives you reach. PMax gives you automation, but with less visibility and control than a pure Search campaign.

Search Campaigns Explained

Search campaigns show text ads to people who are actively searching for what you offer. You choose keywords. Google shows your ad when someone searches for something matching those keywords.

Best for:

• Trades and emergency services ("emergency plumber Melbourne")

• Professional services ("accountant near me," "family lawyer Melbourne")

• Clinics and health ("dentist Richmond," "physio near me")

• Any business where people search with clear intent to hire or buy

What makes Search strong:

• High intent traffic (people are actively looking for a solution)

• Keyword control (you decide which searches trigger your ads)

• Clear data (you can see exactly which search terms drove clicks and conversions)

• Easier to diagnose and fix than automated campaign types

Risks:

• High CPCs in competitive markets (legal, medical, trades)

• Weak keywords or match types waste money. See our match types guide.

• Poor landing pages kill conversion rate. See our landing page guide.

• Search volume may be limited in very niche markets

If someone is already searching for the thing you sell, Search is usually where you prove the economics first.

Display Campaigns Explained

Display campaigns show image and banner ads across the Google Display Network, which includes millions of websites, apps and Google owned properties like YouTube and Gmail. People see your ads while browsing other content, not while searching.

Best for:

• Remarketing to past website visitors (people who clicked but didn't convert)

• Visual offers (events, food, fashion, experiences)

• Brand awareness during longer buying cycles (real estate, B2B, high value services)

• Supporting Search campaigns by staying top of mind

Risks:

• Low intent traffic (people are browsing, not buying)

• Cheap clicks that look impressive but don't convert

• Poor placements (your ad on kids' games or irrelevant sites)

• Expecting Search quality leads from a browsing audience

Display is usually not where a Melbourne service business should go first for urgent leads. It is better as a support channel once the main funnel is working.

Performance Max Explained

Performance Max is Google's goal based campaign type. You provide conversion goals, creative assets (headlines, descriptions, images, video) and optional audience signals. Google's AI then decides where, when and to whom your ads show across Search, YouTube, Display, Gmail, Maps and Discover.

Best for:

• Ecommerce with strong product feeds and conversion tracking

• Accounts with clean tracking and at least 30 conversions/month

• Businesses with good creative assets (images, video, compelling copy)

• Scaling after Search has already proven the economics

Risks and limitations:

• Less keyword level control than Search (you can't choose specific keywords)

• Less transparent (harder to see which searches triggered your ads)

• Can lean into branded search (making it look like PMax is performing well when it's just capturing people who already knew your name)

• Optimises toward whatever you set as primary conversions. If those are weak (page views, button clicks), PMax amplifies the wrong signals.

• Creative quality matters more than many SMBs realise. Weak images and generic headlines reduce performance.

Search vs Performance Max: The Decision Most SMBs Get Wrong

This is the most common question we get and it connects to the Search vs Performance Max FAQ in our cost guide.

Recommended Campaign Split for Melbourne Small Businesses

This aligns with the recommended budget split in our Google Ads cost guide.

Which Campaign Type by Business Model?

For businesses choosing between Google Ads and Facebook/Instagram altogether, our Google Ads vs Facebook Ads comparison covers when each platform makes more sense.

Cost Comparison: Cheap Clicks vs Useful Clicks

Display clicks often cost 80-90% less than Search clicks. That looks attractive until you see the conversion rates. A $2 Display click that converts at 0.5% costs $400 per lead. A $15 Search click that converts at 8% costs $187 per lead. The "cheap" clicks are actually more expensive.

Cheap clicks are not cheap if they never become customers.

When Each Campaign Type Wastes Money

Search Wastes Money When:

• Match types are too broad with no negatives. See our negative keywords guide.

• Location targeting is too wide (advertising to all of Melbourne when you service 5 suburbs)

• Landing page doesn't convert. See our landing page guide.

• CPCs exceed what the business economics can support

Display Wastes Money When:

• Used for direct lead generation too early (before Search is proven)

• Creative is weak (generic stock images, vague messaging)

• Placements and audiences are poorly targeted

• Remarketing lists are too small (under 1,000 users)

• No frequency capping (showing the same ad 50 times to the same person)

PMax Wastes Money When:

• Tracking is wrong or primary conversions are weak

• Creative assets are poor (Google has nothing good to work with)

• The campaign is mostly capturing branded search (people who already knew you)

• The business expects keyword level control and transparency

• Budget is too small for the algorithm to learn effectively

The wrong campaign type can make a good budget look too small.

The Safest Rollout Plan

This builds on the staged approach from our Google Ads setup guide and first 30 days guide.

The safest path is not to avoid automation forever. It is to earn the right to use it by proving the fundamentals work first.

Common Beginner Mistakes

1. Starting with PMax because it sounds easier. PMax automates decisions, but it doesn't replace the need for clean tracking, strong creative and proper conversion setup. It's not an autopilot button.

2. Running Search and Display together accidentally. Google's setup flow can add Display expansion to Search campaigns by default. Check your campaign settings.

3. Expecting Display to produce Search quality leads. Display reaches people who are browsing, not searching. Judging Display by Search CPL standards will always be disappointing.

4. Judging PMax only by dashboard conversions. PMax can report strong conversion numbers that include branded search, soft conversions or weak actions. Look at actual lead quality.

5. Spreading budget across too many campaign types. Three campaigns with $500 each is worse than one campaign with $1,500. Focus first, expand later.

6. No creative assets for visual campaigns. Display and PMax need images, video and strong ad copy. Launching with generic stock photos produces generic results.

7. No remarketing strategy. Most visitors don't convert on the first visit. If you're not remarketing to past visitors, you're losing the easiest conversions available.

How to Choose: Decision Flow

Run through these questions in order.

1. Are people actively searching for your service?

Yes: Start with Search.

No: Consider Display, social or content marketing to build awareness before spending on Search.

2. Do you have clean conversion tracking?

No: Fix tracking before testing PMax.

Yes: PMax becomes a viable test option.

3. Do you have strong images, video and creative assets?

No: Avoid heavy Display or PMax investment. Both need visual assets to perform.

Yes: Display remarketing and PMax become stronger options.

4. Is your budget small (under $2,000/month)?

Yes: Do not split across multiple campaign types. Focus 90-100% on Search. See our minimum budget guide.

5. Do you already have traffic and conversion data?

Yes: Test remarketing and PMax carefully. No: Build traffic with Search first.

What We Recommend at Elev8d

Start with Search. Prove the offer, landing page and CPL work. Then add remarketing once you have traffic. Then test PMax once tracking is clean and conversion volume justifies it.

If your budget is under $3,000/month, keep it simple. One Search campaign, tight targeting, phrase and exact keywords, strong landing page and proper tracking. That single focused campaign will outperform three underpowered campaigns spread across Search, Display and PMax.

And if you're running PMax as your only campaign without clean tracking, stop and fix the foundation. Use our Budget Calculator to model what your budget actually produces at different conversion rates, then decide where to allocate.

FAQs

What is the difference between Search and Display ads?

Search ads show when someone actively searches for something (high intent). Display ads show while someone is browsing websites or apps (lower intent). Search captures demand. Display creates awareness or remarketing opportunities.

Is Performance Max better than Search?

Not inherently. PMax automates across more channels and can scale well, but it gives you less control, less transparency and depends heavily on clean tracking and strong creative. Search is usually the better starting point for most SMBs.

Should small businesses use Performance Max?

Only after Search is working, tracking is clean and conversion volume is meaningful (15-30+ per month). PMax without these foundations tends to amplify weak signals rather than produce strong results.

Should I start with Search or PMax?

Search. It gives you keyword control, clear data and easier diagnosis. Prove the economics with Search first, then test PMax as a scaling tool once you have confidence in your tracking and conversion quality.

Are Display ads worth it for local businesses?

Primarily for remarketing (following up with people who visited your site but didn't convert). Display for cold audiences is usually too low intent for local service businesses. It works better as a support channel, not a primary lead source.

Can Search and PMax run together?

Yes. Google says PMax is designed to complement keyword based Search campaigns. Many accounts run both. The risk is that PMax may capture some searches that Search would have captured, making attribution harder to read. Monitor carefully.

Does PMax replace Search campaigns?

No. Google positions PMax as a complement to Search, not a replacement. Search gives you keyword level control and transparency that PMax doesn't offer. Most well managed accounts keep Search campaigns running alongside PMax.

Which campaign type is best for Melbourne businesses?

For most Melbourne service businesses, Search is the best starting point. It captures people who are already looking for your service. Add Display remarketing once traffic exists. Test PMax once the fundamentals are proven. For the full budget allocation framework, see our Google Ads cost guide.

Next Steps: Pick Your Path

Path 1: Review Your Current Campaign Types

Open your Google Ads account. Check which campaign types you're running. Compare your budget split against the recommended table in this guide. Simplify if needed.

Path 2: Get a Campaign Structure Review

Not sure whether your budget should go into Search, Display or PMax? Send us your business type, budget and current tracking setup. We'll tell you which campaign type makes sense first. Request a free campaign review.

Path 3: Have It Managed Properly

If you'd rather have someone build the right campaign structure from day one, talk to our team about Google Ads management. We start with Search, prove the model and only expand into PMax and Display when the data justifies it.

Sources and Further Reading

Elev8d: How Much Do Google Ads Cost in Melbourne? - Including the recommended budget split and PMax FAQ

Elev8d: How to Set Up Google Ads (Step by Step) - Campaign type selection and settings guide

Elev8d: Google Ads First 30 Days - Week by week plan starting with Search

Elev8d: Conversion Tracking Setup Guide - Essential before running PMax

Elev8d: Google Ads Landing Pages - Why the page matters for every campaign type

Elev8d: Google Ads Budget Calculator - Model what your budget produces

Elev8d: Google Ads vs Facebook Ads - When each platform makes more sense

Google Ads Help: About Search Campaigns - Google's documentation on Search campaigns

Google Ads Help: About Display Campaigns - Google's documentation on Display campaigns

Google Ads Help: About Performance Max - Google's documentation on PMax campaigns

ACCC: Advertising and Selling Guide - Truthful claims requirements

General information only. Rules vary by situation, particularly around advertising claims, privacy, reviews and consumer law. If you're unsure about compliance, get professional advice.