For small business owners navigating the digital marketing landscape, understanding how different advertising channels work together can unlock major returns.

Paid search advertising, display campaigns, and retargeting each play a unique role in attracting and converting customers. However, the real power lies in integrating them into a cohesive strategy.

Let’s explore how they work together to cover the entire customer journey, from the first interaction to the final conversion, and why integration leads to stronger ROI.

1. What is paid search, display advertising, and retargeting?

Paid search advertising involves placing ads on search engine results pages when users type in specific keywords. This allows businesses to appear in front of people actively searching for their products or services. Display advertising, on the other hand, uses banner or visual ads across websites and apps to raise awareness and drive brand visibility. Retargeting is a strategy that shows ads to users who have previously visited your site but didn’t take action.

Each of these serves a different purpose in the sales funnel. Paid search focuses on capturing existing demand. Display advertising introduces your brand to new audiences. Retargeting brings back users who showed interest but didn’t convert.

When these strategies are aligned, they create multiple touchpoints throughout the buying process. That means more opportunities to connect with your audience, remind them of your value, and ultimately, convert them.

2. How does paid search capture high-intent users?

Paid search advertising is incredibly effective at finding people who are already looking for what you offer. For instance, someone searching “emergency plumber near me” is clearly in need of plumbing services now. By targeting specific keywords, businesses can place their ads directly in front of these high-intent users.

This method is effective for conversions because it targets users who are ready to take action. But even the best-paid search campaigns have a limitation. Studies show that 96% of users leave a website without converting on their first visit. That’s a large audience potentially lost if there is no follow-up strategy in place.

This is where retargeting and display come in. These channels allow businesses to continue engaging with users after the initial interaction, increasing the chances of bringing them back to convert later.

3. What role does display advertising play in the customer journey?

Display ads are especially useful at the top of the funnel, where awareness matters most. These visual ads are shown across a wide range of websites and apps, helping your brand get in front of users who may not know about you yet.

One of the major advantages of display campaigns is the cost. According to WordStream, the average cost per click for display ads is $0.63, compared to $2.69 for paid search. This makes display a cost-effective way to generate exposure at scale.

Display advertising also supports brand recognition. By showing your brand across devices and platforms, you can remain top of mind as users continue their journey, even if they don’t act immediately. This is especially useful in industries where the buying cycle is longer or involves more research.

4. How does retargeting help recover lost conversions?

Retargeting is designed to re-engage users who have interacted with your site but didn’t complete a desired action. Whether they browsed product pages, read your blog, or added items to a cart and abandoned them, retargeting allows you to reach these potential customers again with tailored ads.

Dynamic retargeting takes it a step further. It shows users the exact products or services they viewed on your website, making the message more personal and relevant. This level of customization significantly boosts the likelihood of conversion.

Retargeted users are 70% more likely to convert than those seeing your ads for the first time. That’s why retargeting is a crucial piece in your overall digital marketing puzzle. It ensures that you do not lose the interest of users who were already halfway down the funnel.

5. How can you combine these channels for maximum ROI?

One of the most effective tools for combining paid search with retargeting is Remarketing Lists for Search Ads (RLSA). This feature allows you to adjust your search ad strategy based on whether a user has already visited your site. You can bid more aggressively on these users or tailor the messaging to reflect their previous behavior.

Display campaigns can also benefit from search insights. By analyzing which keywords are driving clicks and conversions through paid search advertising, you can build more targeted display audiences. You can even shape your display ad creative based on what you know users are searching for, making it more likely to resonate.

Sequencing your campaigns can also improve performance. A user might begin by clicking a paid search ad, later see a display ad while reading a news article, and then encounter a personalized retargeting ad offering a discount. When they search for your brand again and convert, that entire sequence has worked together to make the sale happen.

A real-world example might look like this: A user searches for “running shoes” and clicks on a paid search ad. They browse a few products but leave the site. Later, they see a display ad while reading an article. A few days later, a retargeting ad shows them the exact pair of shoes they looked at, now with a promo code. They click again, search for your brand directly, and finally convert. Also, 90% of marketers say retargeting performs as well or better than search, which highlights how essential integration is.

6. How do you track and attribute cross-channel performance?

To truly understand what’s working and what isn’t, you need the right tracking tools. Using Google Analytics 4 (GA4), UTM parameters, and third-party data connectors can help map the user journey across all your campaigns. This enables you to see which channels are driving initial interest, which ones are re-engaging users, and which are converting them.

Cross-channel attribution ensures you’re giving credit where it’s due. Without it, you may incorrectly assume that paid search advertising alone is driving all the value, while retargeting and display are actually doing a lot of heavy lifting in the background.

7. What common challenges do marketers face, and how can you solve them?

Even with a strong strategy, there are a few common challenges. Ad fatigue can occur when users see the same creative too many times. Solve this by using frequency caps and regularly updating your visuals.

Data silos between platforms can make it difficult to get a full picture of performance. Using integrated analytics tools helps unify the data and provide clearer insights.

Privacy laws continue to evolve, making it more important than ever to rely on first-party data and gain explicit user consent for retargeting. This ensures compliance while maintaining trust with your audience.

Frequently Asked Questions

Below are some additional questions to consider:

What is the difference between retargeting and remarketing?

Retargeting typically refers to serving ads to previous visitors using third-party cookies, while remarketing is often used in email campaigns or through first-party data platforms.

Can I run display and search campaigns from the same platform?

Yes, platforms like Google Ads allow you to manage both paid advertising and display campaigns from a single interface, making it easier to coordinate strategies.

How long should a retargeting window last?

This depends on your sales cycle. For fast-moving products, a window of 7 to 14 days may be ideal. For longer decisions, like financial services, up to 30 or 60 days may be more effective.

Maximize your strategy with paid search advertising

When used alone, paid search advertising is a powerful tool for reaching users who are ready to act. But when combined with display campaigns and retargeting, it becomes part of a full-funnel strategy that improves reach, relevance, and return on investment. For small businesses looking to grow, integrating these channels is not just smart, it’s essential.

If you want your small business to experience the many benefits of this form of advertising, get in touch with paid search advertising services today.