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Search is from Mars, Content is from Venus

Google’s search and content networks are both great sources of profitable traffic, but they are very different from one another. And in the same way that you wouldn’t want unrelated keywords grouped together in your account, you’re going to want to keep search and content in their own distinct campaigns.

But what is it that makes them so different?

Audience:
Traffic from the search network is coming from an active group of prospects. This is exactly what makes paid search advertising so unique: you get to show your ad to a prospect at the precise moment that they are seeking your product or service (depending on your keyword list of course).

On the other hand, traffic from the content network is much more passive. You’re getting your ad served at a moment when their attention is elsewhere, focused on the content of the site they’re on.

Performance:
This variance in user behavior between search and content leads to a large difference in performance. Due to the high level of motivation found in search traffic, the search network tends to have a much higher CTR than content. However, the number of impressions available on content tends to be vastly greater than available search impressions for a given keyword theme since AdSense can be found on so many sites throughout the web, so you can still pick up plenty of clicks from content despite the low CTRs.

read full article here.