Microsoft found that Copilot ads result in fewer quick click backs than traditional search ads.
These performance benefits are attributed to the previously mentioned deeper engagement and conversational context in Copilot.
Why Performance Max Stands Out
According to Microsoft, Performance Max campaigns consistently outperform their other ad formats:
Responsive Search Ads (RSA): PMax delivers higher engagement compared to standard responsive search ads.
Shopping Campaigns: PMax shopping campaigns drive more conversions than traditional shopping campaigns.
Multimedia Ads: PMax shows with fewer quick click backs and more engaged users.
Microsoft highlights that this higher level performance comes from PMax’s ability to analyze the context of conversations within Copilot, serving more relevant ads.
Best Practices For Optimizing For Copilot In Microsoft Ads
Microsoft Ads recommends three key best practices to help advertisers maximize the potential of Copilot in the Microsoft Ads platform:
Use PMax for Maximum Coverage: PMax integrates assets and optimizes them across various formats, making it a good fit for reach, engagement, and conversions in Copilot.
“Optimize Once, Benefit Twice”: There’s no need to create separate campaigns for Copilot because it is enabled in existing search campaigns. Instead, Microsoft takes your optimized search campaigns and finds opportunities to display them within the Copilot chat experience.
Productivity with New Tools: To further improve campaign management and performance, Microsoft highlights the importance of using its latest tools, Performance Snapshot and Diagnostics, to get AI-powered insights and recommendations for the account.
The better the existing search campaigns are optimized, the better chance those ads will perform well in Copilot. Focusing on efficient search strategies now carries over to ads in Copilot.
Performance Max: Microsoft’s Best Practices For Setup And Optimization
Microsoft shared recommendations on how advertisers can get the most out of PMax, detailing deeper best practices for setup with key levers to drive better performance with advanced AI automation.
Audience Signals: These signals are crucial for directing the AI toward high-value prospects. Use tools like remarketing, custom audiences, and customer match, which provide signals and guidance to the algorithm.
Search Themes: These keyword-based signals provide important context to the AI, improving targeting accuracy and relevance.
Brand Exclusion Lists (Pilot): This feature, currently in testing, lets you exclude branded queries where you don’t want your ads to appear. It’s also useful for strategic targeting, such as avoiding competitor terms or focusing on conquesting opportunities.
Other areas to optimize for success include:
Budgets.
Bid strategies.
Goals and targets.
Web exclusions.
Assets.
Product feeds.
URL expansion.
Recommendations For Setting Up PMax Campaigns
To achieve the best results, Microsoft offered several actionable tips and outlined expectations for advertisers:
Time To First Impression
Retail campaigns typically show results within three days.
Non-retail campaigns may take up to four days.
Learning Period
Allow two to four weeks for the AI to fully optimize.
This phase requires patience and depends on factors like:
A conversion volume of 30+ in the past 30 days.
Conversion cycle length.
Industry type and seasonality.
Budget Recommendations
Allocate 25-30% of your Google Ads budget to Microsoft Advertising.
Provide two to three times the budget of historical standalone search campaigns for PMax to maximize effectiveness.
Best Practices
Ensure adequate budgets to avoid constraints.
Leverage audience signals and search themes for precise targeting.
Use the bid landscape tool to make informed decisions on target bids.
Strategically manage constraints like product or location focus during testing phases.
What’s Next For PMax
Microsoft continues to enhance PMax with new features on the horizon, including:
Goals focused on acquiring new customers.
Improved audience insight reports.
Expanded support for video assets.
Summary
Microsoft’s recent updates to Copilot and ad integration reflect a strategic push to redefine the advertising landscape with AI-driven conversational search.
With rising consumer trust in generative AI and enhanced ad relevance within chat experiences, businesses have an opportunity to connect with their audience in more meaningful ways.
Microsoft stands firmly behind Performance Max campaigns and their new AI tools to deliver efficiency and engagement in the ad platform.
By exploring these advancements, advertisers have the potential to stay ahead in an evolving AI ads ecosystem.
*All the data and information above are taken from the Microsoft Advertising Partner Pulse meeting in November 2024.
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