Microsoft Advertising: A comprehensive guide

Microsoft Advertising: A comprehensive guide

Ad formats include:

Single-image ads for clean, native placements.

Multi-image carousel ads for showcasing multiple products.

Feed-based ads for dynamic catalog-based advertising.

Video placements for rich media engagement.

Successful MSAN campaigns require a strategic approach. 

Start with brand search remarketing audiences, as these users are more likely to engage. 

High-quality creatives – featuring clear headlines, compelling calls to action and high-resolution visuals – are critical for capturing attention.

Performance patterns differ from search campaigns, with lower cost-per-clicks and earlier touchpoints in the purchase journey. This makes MSAN ideal for brand awareness and top-of-funnel objectives.

Optimization is key for sustained success in MSAN. 

Regularly refresh creatives to prevent ad fatigue and refine audience targeting to focus on valuable prospects.

Begin with manual bidding to gather data, transitioning to automated strategies as conversion history grows.

Analyze device performance and time-of-day trends to allocate budgets effectively.

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Video and Connected TV ads

Microsoft’s newer ad formats focus on video and connected TV (CTV) advertising, providing diverse opportunities to engage audiences across premium publishers and platforms.

These video ads are served on high-traffic properties, including:

MSN’s content network.

Microsoft Casual Games.

Activision Blizzard gaming platforms.

Major publishing partners such as:

Huffington Post.

People.

CBS Sports.

Other premium content sites.

Microsoft offers two primary video ad formats:

Instream: Ads that play before, during or after video content.

Outstream: Ads that appear within article content or elsewhere on a webpage.

Microsoft’s entry into the streaming television space allows advertisers to reach cord-cutters and streaming audiences through full-screen video experiences on popular platforms like:

Netflix.

Roku.

discovery+.

Other major streaming services.

The key advantage of CTV ads is their TV-like experience. These ads typically achieve high completion rates as viewers engage in a lean-back, content-consumption mode.

Advertisers can achieve significant volume with these formats but should proceed cautiously, monitoring data closely, as they are relatively new with limited long-term case studies.

Upper-funnel formats like video tend to require substantial budgets, so starting with just $500 may not be effective. 

Success depends on a well-thought-out media plan and strong creative assets.

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Vertical ads

Vertical ads are Microsoft’s tailored approach to industry-specific advertising, designed to display the most relevant information for specific sectors rather than using a one-size-fits-all format. 

These ads are built to match how consumers search and shop within particular industries, showing the most critical information pre-click.

In the travel sector, vertical ads display essential details such as cruise itineraries, hotel prices, and tour options directly in the ad. 

For financial services, they highlight features like credit card rewards and insurance coverage, simplifying complex decision-making for users. 

Automotive advertisers can showcase inventory with specifications, pricing and images, delivering a virtual showroom experience right within the search results.

Vertical ads are easy to implement. Despite their sophisticated functionality and appearance, they require minimal effort from advertisers. 

Microsoft’s system leverages existing product feeds and data catalogs, with AI handling the creation and optimization of these industry-specific ads.

Tracking and tagging in Microsoft Ads

Proper tracking setup is essential for measuring success and optimizing your Microsoft Ads campaigns. 

The platform provides multiple methods to track conversions and user behavior, catering to various needs and technical setups.

The universal event tracking (UET) tag is Microsoft’s primary tracking solution, comparable to Google’s global site tag. 

This JavaScript snippet must be installed on all pages of your website and serves two key functions:

Tracking conversions and goals.

Building remarketing audiences.

Setting up the UET tag is a critical first step when starting with Microsoft Ads. 

Without it, tracking conversions or creating remarketing lists is impossible. 

It should be placed in the header of every webpage, preferably using Google Tag Manager for simplified management.

Microsoft Ads supports several conversion tracking options:

UET tag-based conversions

Track specific page visits (e.g., thank-you pages).

Monitor user actions (e.g., button clicks, form submissions).

Track custom events and variables.

Measure transaction values.

Offline conversion imports

Upload offline sales data.

Track phone call conversions.

Import CRM data.

Match offline conversions to specific ad clicks.

To accurately attribute performance, Microsoft uses the Microsoft Click ID (MSCLKID) as a URL parameter. 

It is strongly recommended that you activate auto-tagging under account-level settings. This eliminates the need for manual tagging, reduces tracking errors and saves time.

Clarifying misconceptions about Microsoft Ads

‘It’s just a smaller version of Google Ads’

While Microsoft Ads shares similarities with Google Ads, it is not a scaled-down version. 

Unique features like LinkedIn targeting, its audience network and distinct search partners set it apart. 

Also, user behavior on Microsoft Ads often differs, which makes it worthwhile to develop Microsoft-specific strategies rather than simply duplicating Google Ads campaigns.

‘The traffic quality is lower’

This misconception is unfounded. Microsoft’s search network tends to attract users with higher household incomes and greater education levels on average. 

Its strength in professional and B2B searches makes it especially valuable for business-focused advertisers.

‘The volume is too low to matter’

Although Microsoft’s overall market share is smaller than Google’s, it still reaches millions of users daily. 

On desktop devices and in specific markets, Microsoft’s share can climb to 30%, offering access to a significant untapped audience that’s often more affordable to reach.

‘It’s only worth it for B2B companies’

While Microsoft Ads excels in B2B advertising, it is also effective across many other sectors. 

Ecommerce, services and consumer products can perform well when advertisers understand their audience and leverage Microsoft’s unique targeting options.

‘It’s too complicated to manage another platform’

Modern PPC management tools simplify handling multiple platforms. 

While importing campaigns from Google Ads is an option, treating Microsoft Ads as a distinct channel with tailored optimizations typically delivers better results. 

The potential ROI often justifies the additional management effort.

‘It can replace Google Ads’

This is a risky assumption. Microsoft Ads should complement, not replace, Google Ads. 

While Microsoft Ads offers excellent ROI and access to unique audiences, Google’s dominant market share remains irreplaceable for most businesses. 

A strategic approach that leverages the strengths of both platforms is ideal.

Why you should avoid using the Google Ads import for Microsoft Ads

While the Google Ads import feature in Microsoft Ads appears convenient, it often results in suboptimal performance. 

Based on my experience, relying on this tool is a primary reason many believe “Microsoft Ads do not work.” 

Here’s why creating dedicated Microsoft Ads campaigns is a better approach:

Campaign structure should be more focused

Microsoft Ads operates with lower search volume compared to Google, requiring a more concentrated campaign structure:

Combine similar low-volume ad groups.

Focus on top-performing keywords rather than broadly targeting new terms.

Group related products or services together rather than segmenting too granularly.

Allocate budgets tightly to ensure meaningful data collection.

Importing Google’s expansive structure often leads to excessive low-volume ad groups and keywords that fail to gather sufficient data for optimization.

Leverage Microsoft-specific features

Simply importing campaigns misses out on Microsoft Ads’ unique features, including:

LinkedIn targeting for precise B2B campaigns.

Microsoft-exclusive audience segments for refined targeting.

Unique platform-specific ad formats that improve user engagement.

Industry-specific vertical ads tailored for key sectors like travel, automotive and finance.

Tailored optimization approaches are essential

Microsoft Ads requires adjustments to achieve optimal results:

Use higher starting bids to gather data more quickly.

Adopt aggressive bid management to compensate for lower volume.

Pay attention to device performance patterns, as these often differ from Google.

Use unique demographic and audience targeting options.

While the Google Ads import tool may initially save time, building campaigns specifically for Microsoft Ads allows you to fully take advantage of its features. 

Ultimately, this delivers better long-term results and ensures the platform’s potential is fully realized.

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