Microsoft Advertising remains the underappreciated gem in the digital advertising landscape.
While Google Ads dominates search globally, Microsoft’s ad platform has quietly built a significant presence. In desktop search, it commands over 30% of the U.S. market.
Source: Statista
This reach shouldn’t be surprising, as Microsoft Ads extends beyond Bing to a network that includes Yahoo, AOL and numerous partner sites.
For advertisers fixated solely on Google, this represents a missed opportunity to reach millions of users, many with higher-than-average household incomes and active engagement in B2B research.
With digital advertising costs rising on Google’s platform, smart advertisers increasingly turn to Microsoft Ads as a vital component of their PPC strategy.
Whether you’re looking to expand your reach, reduce your cost per acquisition or tap into Microsoft’s unique targeting capabilities, understanding this platform is essential for any serious digital marketer.
What is Microsoft Advertising?
Microsoft Advertising (formerly known as Bing Ads) is one of the newer PPC platforms among search engines.
While Google launched Google Ads (originally AdWords) in 2000, Microsoft took a few more years to develop its own solution.
Initially, Yahoo served ads on MSN, but by 2006, Microsoft began investing more heavily in its own advertising technology.
In 2010, Microsoft took over Yahoo Search, selling ads across both Yahoo and Bing.
The platform was rebranded as Microsoft Advertising in 2019, a name that appears set to stay.
The special thing about Microsoft Ads, compared to Google, is that Microsoft integrates several previously independent platforms for advertising, while Google primarily relies on its search engine and YouTube.
The Microsoft Advertising Partner Network consists of:
Microsoft products: Bing, MSN, Edge and Outlook.
Partnerships: Yahoo and Ecosia (a search engine focused on sustainable projects which uses Microsoft search results).
While it might seem overwhelming at first glance, it’s important to understand Microsoft Ads and its historical path to growing such a network.
Google’s dominance as a search engine is undisputed. Its search market share is 80-90% or more, depending on the country or market. This trend continues on mobile.
To compete and attract media buyers, building and growing a network over time is essential.
Focusing solely on Bing would not have worked for Microsoft, especially since products like YouTube are difficult to replace.
Rather than attempting to replicate Google directly, Microsoft chose to develop its own PPC platform by:
Forming partnerships.
Adding ad placements.
Establishing search partnerships and collaborations over time.
Microsoft Ads vs. Google Ads
A common question is how Microsoft Ads compares to Google Ads.
While both platforms share many concepts and structures, there are key differences in the details.
Microsoft Ads typically offers lower CPCs and less competition than Google Ads, making it a more budget-efficient option for advertisers.
It excels in B2B advertising, particularly with its LinkedIn targeting, which allows for precise targeting by company, job title and industry.
While its audience tends to be older and more business-focused, Microsoft Ads offers fewer campaign types than Google’s broader network, including YouTube and Display advertising.
Although Microsoft’s overall reach is smaller, it often provides better value, especially in markets where Google’s rising costs and competition make profitable campaigns more challenging.
This is why Microsoft Ads is an essential complement to Google Ads, particularly for advertisers in B2B and finance sectors.
Microsoft Ads campaign types and ad formats
Search campaigns
Search campaigns are the foundation of Microsoft Advertising.
They connect advertisers with users at the crucial moment when they are actively searching for relevant products or services.
While the basic concept is similar to Google Ads, success requires an understanding of Microsoft’s unique features and requirements.
Campaign structure and setup
A well-structured campaign begins with thoughtful organization.
Instead of grouping everything into one campaign, divide efforts by product lines or business goals.
Use focused ad groups with 10-20 closely related keywords to enable more relevant ad copy and improve quality scores.
Clear naming conventions are essential for maintaining clarity as your account grows.
Also, dynamic search ads can be used to automatically target specific pages or categories, offering an efficient way to discover new keyword opportunities.
Ad formats and extensions
Responsive search ads (RSAs) are now the standard format in Microsoft Ads.
With up to 15 headlines and four descriptions, they provide flexibility for Microsoft’s AI to test combinations and optimize performance.
While expanded text ads are being phased out, Microsoft compensates with a wide range of ad extensions.
Beyond the standard sitelinks, call and location extensions, it offers unique options like action extensions, which can give your ads a competitive edge.
Another standout format is multimedia ads which help brands stand out in search results with visually striking advertisements.
Unlike traditional text ads, these combine compelling imagery, brand logos, and optimized ad copy to create high-impact placements in premium positions – both in the mainline and sidebar of search results.
A key advantage of Multimedia Ads is their ability to maintain existing text ad positions while adding visually enhanced touchpoints to engage potential customers.
These ads automatically adapt their format to match user search intent, seamlessly combining headlines, descriptions, images and logos into layouts optimized for driving engagement and conversions.
Keyword strategy and management
Success in Microsoft Ads search campaigns depends on smart keyword selection and management.
Instead of relying solely on broad match keywords, use a balanced approach.
Start with exact match for proven performers and phrase match for controlled expansion.
Broad match can be effective but requires careful negative keyword management.
Regularly analyze search terms to find opportunities and exclude irrelevant terms.
Bidding and optimization
Microsoft Ads provides various bidding strategies to suit different goals.
Manual CPC offers full control.
Automated options like Enhanced CPC or Target CPA can deliver better results once you have sufficient conversion data.
Starting with slightly higher bids can help gather data quickly, allowing for performance-based optimization.
Monitor device performance closely, as desktop users on Microsoft’s network often behave differently than on Google, and adjust bid modifiers accordingly.
Also, note that smart bidding works differently on Microsoft due to lower traffic and conversion volumes, which can limit the algorithm’s effectiveness.
Don’t expect a smart bidding strategy to perform well if you lack the data for it. Keep your campaign setup simple to concentrate data and improve algorithm performance.
Shopping campaigns
Microsoft Shopping campaigns enable retailers to showcase products directly in search results with rich details like images, prices and merchant information.
Although often overshadowed by Google Shopping, Microsoft’s platform offers competitive CPCs and serves as a valuable additional revenue stream for ecommerce businesses.
A key advantage is that Microsoft integrates its Merchant Center within the advertising platform, eliminating the need to use a separate platform.
Advertisers can choose between standard Shopping or Performance Max campaigns to launch product ads, which appear on Bing’s search results page or shopping tab.
Product ads, alongside search ads, are core formats in Microsoft Ads and are essential for any ecommerce business seeking to maximize its reach and revenue.
Microsoft Audience Network
The Microsoft Audience Network (MSAN) complements traditional search advertising by enabling brands to reach audiences through premium native placements.
Unlike standard display advertising, MSAN delivers ads that integrate seamlessly into the user experience across platforms such as MSN, Outlook.com, Microsoft Edge and select publisher partners.
MSAN’s unique targeting capabilities, including LinkedIn integration, set it apart.
Advertisers can target audiences by company, industry or job function, offering precision unmatched on other platforms.