Microsoft Ads & AI: What advertisers need to know

It’s not all about Google in the world of AI ads. Microsoft has been building one of the most interesting ad systems available today.

AI ads that are backed by LinkedIn data, baked into emerging AI options and ready for a conversational future of Search. Microsoft Ads is no longer a mere sidekick; it’s the smart option for marketers ready to embrace AI.

In this article, we’ll power through the key attributes and features of AI in Microsoft Ads, leaving you ready to take on your next big campaign with clarity and confidence:

• AI in MS advertising: What's already here?
• Bing + ChatGPT - a new kind of Search behaviour
• What makes Microsoft's AI offering unique
• How to prepare and optimise your PPC for Microsoft AI-assisted ads

AI in MS advertising: What's already here?

Before we delve deeper, it’s time to get up to speed with what is already on offer from Microsoft ads.

Automated bidding strategies
With the complexity of managing thousands of different ad bids at just the right time, in just the right way, AI comes in to help. Outcome-first campaign types like Performance Max use AI to optimise bids across channels for conversions. This massively speeds up the process of taking care of bids for larger, more complex campaigns.

Responsive search ads with AI suggestions
On the dynamic creation front (where ads are created from scratch by AI, using guide phrases and inputs selected by you, the marketer) Dynamic Search Ads (DSA) now use query signals to dynamically generate ads.

AI intent signals for targeting
If you go back a few years, PPC was still focusing its targeting exclusively on keywords. In the modern world, (and certainly at Microsoft) ads are being targeted based on real time behavioural and contextual signs from audiences. This makes the targeting automatically more relevant and timely to each user, increasing the relevance of your ad exposure, and decreasing the amount of guess-work from you, the marketer.

Audience targeting via LinkedIn profile data
MS Ads uses LinkedIn profile signals combined with AI intent data to improve audience targeting. This is a totally unique pairing in the world of PPC, with only Microsoft providing this LinkedIn-specific data set to its users. This makes it ideal for marketers targeting CEO’s, Millennial (and older) audiences and corporate demographics especially relevant.

Smart Shopping campaigns
Like the majority of PPC platforms, Microsoft offers an AI-driven Shopping option, with Performance Max (AI-driven multichannel campaign) becoming increasingly commonplace among users.

Conversational ads (Chat + Copilot integrations)
As is the trend for the future of PPC, search is increasingly conversational. Microsoft has its own chatbot in the form of Copilot. This environment yields 25 % more relevant ads and 53 % higher purchase likelihood within 30 minutes for many marketers (source).

New ad formats built for conversational AI
On top of this, you can find ads that are blurring the lines between clearly defined ads for a shopping-specific experience and a more integrated user experience, encouraging AI-driven interactions. These take the form of Showroom ads (interactive, immersive shopping experience within Copilot) with Dynamic filters that quickly refine options mid-conversation.

Bing + CHATGPT - a new kind of Search behaviour

Let’s focus on the future of PPC. Users increasingly pose longer, conversational queries to tools like Copilot and ChatGPT rather than traditional keyword searches. Today, traditional SERPs give way to curated, AI‑summarised answers.

In the current transition period, where users are using both styles of search, PPC managers must adapt creative and targeting for AI-assisted journeys as well as classic search results. In short, you’ve got to cover both!

Ads embedded within conversational search often enhance the experience (and can simplify your roll-out of conversational search based updates to your existing campaigns). 46 % of users reported improved experience when noticing ads in AI search, and 26 % even reported increased brand trust (source).

What makes Microsoft's AI offering unique

Most PPC platforms offer some form of AI integration. But what makes Microsoft’s offering so unique and powerful?

The answer lies in its deep integration with LinkedIn and LinkedIn’s data sets. This allows for precise, professional targeting that is distinct from Google. Microsoft offers a cross‑platform inventory spanning search, productivity apps, gaming, Windows, Edge, and more. In short, you’re not just looking at another clone of Google, but an entirely new ecosystem to bring in users.

How to prepare and optimise your PPC for Microsoft AI-assisted ads

The level-up, you need to be prepared and familiar with the latest that Microsoft has to offer. Before rolling out large campaigns, test Microsoft audience ads with LinkedIn targeting and get totally up-to-speed with this platform.

With many dynamic ad formats pulling inspiration directly from your initial data-sets, you need to optimise your creative assets for AI summarisation. Break your ads down into tagged assets (headlines, benefits, CTA’s etc) to make it easier for AI systems to assemble your final ad variations.

Monitor AI-related query patterns in the way you monitor traditional search queries. Track search queries from your campaign to discover voice-like phrases and the specifics of how your audience searches for your services. By taking the time to learn how your audience speaks, you can adapt your targeting to speak their language directly to them.

Finally, consider building conversational AI experiences (chatbots or agents) on-site to extend user engagement and guide customers through the journey with the help of AI.

In Closing

Microsoft Ads presents AI for the modern marketer, backed with a unique data-set. It’s an option that meets users already searching online in a conversational way, meeting them halfway on the AI road to a conversion.

If you optimise for AI journeys and workflows, not just keywords, you’re ready for the future of PPC. This article is a resource; a tool for the savvy marketer to return to when you need a hit of inspiration of just how useful Microsoft’s AI options can be.