Paid Search vs Paid Social
Intent-based demand capture versus interruption-based audience targeting — which deserves more budget?
Paid search (Google Ads, Bing Ads) shows ads to people actively searching — they have expressed intent right now. Paid social (Meta, LinkedIn, TikTok, X) shows ads to people based on who they are — demographics, interests, job titles, behaviours — and interrupts their feed. Both convert, but they behave differently. Paid search captures existing demand; paid social creates it. Smart businesses use paid search as the bottom-of-funnel harvester and paid social to fill the top of funnel with new audiences.
Side-by-Side Comparison
| Factor | Paid Search | Paid Social |
|---|---|---|
| Audience intent | High — actively searching | Low — passively scrolling |
| Conversion rate | 3–8% | 0.5–2% |
| Cost per click | Higher — AUD $1–$50+ | Lower — AUD $0.30–$5 |
| Targeting model | Keywords and intent | Audiences and interests |
| Creative format | Narrow — text ads, Shopping | Broad — video, carousel, story, feed |
| Funnel stage | Bottom — demand capture | Top/middle — demand creation |
| Attribution | Direct click-to-conversion | Multi-touch, obscured by privacy changes |
| Audience ceiling | Search volume bound | Platform user-base bound (huge) |
The Verdict
Paid search and paid social address different parts of the funnel and shouldn't be treated as either/or. Paid search harvests existing demand — users are already looking for what you sell, so the job is just to be there when they search. Paid social creates demand — users didn't know they needed you, so the job is to interrupt, engage, and eventually drive them to search or land on your site. The right split depends on category. For businesses with high search volume on commercial keywords (e-commerce, local services, B2B software): 60–70% paid search, 30–40% paid social. For businesses where buyers don't actively search because the category is new or niche: reverse that split. For most Australian SMBs running both channels, start with paid search to capture existing demand, then layer paid social once the unit economics on search are understood. Running only one or the other leaves half the funnel unworked.
When to Choose Each
Choose Paid Search if
- Your category has high commercial search volume
- You sell to buyers who actively research before purchasing
- You have commercial-intent keywords with clear conversion paths
- You run e-commerce, local services, or B2B with clear buying terms
Choose Paid Social if
- You're launching a new product category or brand
- Your buyers don't actively search — the category is new or niche
- You want to retarget website visitors, email subscribers, or lookalikes
- You have strong creative assets (video, carousels) to stand out in feed
Use both if
- Nearly every business running meaningful paid budget
- Paid search for demand capture; paid social for demand creation
- Paid social for brand and awareness; paid search to close the deal
- Retarget paid-social-driven site visits with paid search brand terms
Frequently Asked Questions
Paid search typically has higher immediate ROI because intent is higher and conversion follows faster. Paid social has better blended ROI when included in a full funnel because it creates the demand that paid search later captures. Measuring only last-click attribution makes paid search look better than it actually is at a whole-funnel level.
For some categories, yes — if your business relies purely on high-intent buyers who actively search. For most growth-focused businesses, no — you cap out on search volume and miss the audience who doesn't know you exist yet. Paid social is how you expand beyond current demand.
LinkedIn, almost always, despite higher cost per click. Targeting by job title, company size, and seniority is unmatched on other platforms. Meta can work for lower-consideration B2B with lookalike audiences, but LinkedIn remains the B2B default.
Meta (Instagram + Facebook) for most categories due to scale and targeting breadth. TikTok for younger audiences and brands with strong video creative. Pinterest for home, fashion, and lifestyle discovery. Split depends on audience and creative — run tests before committing budget.
Rule of thumb: start 70/30 paid search to paid social for most SMBs with commercial-intent keywords. Adjust based on category and goals. If building brand awareness, tilt heavier to social. If capturing immediate demand in a mature category, tilt heavier to search. The worst answer is choosing only one without testing.
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