Guides

Campaign Guide

Complete Guide to Microsoft Ads Campaign Types for 2025

Master the five essential campaign formats that drive results

If you're new to Microsoft Advertising, selecting the right campaign type is your first significant step toward success. Microsoft Ads offers several campaign formats, each designed for different marketing goals, audiences, and products.

Key Statistics

Microsoft Ads reaches over 1 billion people worldwide with 30-50% lower CPCs than Google Ads in many industries.

1 Search Ads: Capture High-Intent Customers

What are Search Ads? Text-based ads that appear on Bing, Yahoo, AOL, and Microsoft partner sites when someone searches for keywords you've selected.

Best for:

• Driving website traffic
• Reaching customers actively searching
• Promoting time-sensitive offers

How it works:

You bid on keywords and write compelling ad copy. Your ads show up when users search for those terms.

Example: When someone searches for 'best running shoes for women,' your ad appears at the top ready to capture their attention.

2 Shopping Ads: Showcase Your Products Visually

What are Shopping Ads? Display product images, prices, and your store name directly in search results, powered by your Microsoft Merchant Center product feed.

E-commerce Stores

Shopify, WooCommerce, Magento

Multiple Products

Promoting various SKUs

Visual Appeal

Higher click-through rates

Pro Tip:

Combine Shopping Ads with Performance Max for automated placements across Microsoft's channels.

3 Dynamic Search Ads: Automate Keyword Targeting

What are Dynamic Search Ads (DSA)? Automatically generate ads and select landing pages based on your website's content, filling in keyword gaps you might miss.

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Large websites or stores with many products

Perfect for extensive catalogs

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Save time on keyword research

Automated discovery of relevant terms

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Cover new or long-tail search queries

Capture previously missed opportunities

Note: DSAs work best when your website is well-structured and SEO-optimized.

4 Audience Ads: Expand Beyond Search

What are Audience Ads? Native, image-rich ads shown across Microsoft's Audience Network including MSN, Outlook, and Microsoft Edge.

Perfect for:

• Brand awareness campaigns
• Retargeting existing visitors
• Promoting content & events

Placement Network:

• MSN News & Entertainment
• Outlook Email Platform
• LinkedIn Professional Network

Bonus: Leverage LinkedIn profile targeting for advanced B2B campaigns with job function and company size filters.

5 Performance Max: AI-Driven, Cross-Channel Reach

What are Performance Max Campaigns? Use Microsoft's AI to automate ad placements across the entire Microsoft ecosystem including Bing Search, Audience Network, Microsoft Edge, and Windows 11 apps.

2025 AI Updates:

• Search Themes for intent guidance
• Expanded LinkedIn targeting
• Automated creative optimization

Best for:

• Maximum reach with minimal setup
• AI-powered optimization
• Cross-channel campaigns

Pro Tip for 2025:

Use high-quality images and videos to help AI optimize your campaign performance. Microsoft's machine learning algorithms perform best with diverse, high-resolution creative assets.

Ready to Launch Your First Campaign?

Start with Search Ads for immediate results, then expand to Shopping and Performance Max as you scale.

Start Free Trial Request Demo

Shopping Guide

Why Bing Shopping Ads Deliver Higher ROAS Than Google

Step-by-step setup guide

Why Choose Bing Shopping Ads?

Lower Costs

• Microsoft Ads: $1.54 average CPC
• Google Ads: $2.69 average CPC
• 30-50% cost savings potential

Premium Audience

• Higher-income professionals
• Age 35+ with purchasing power
• Default Windows users

Complete Setup Guide: 6 Essential Steps

Create Microsoft Advertising Account

• Visit ads.microsoft.com and sign up
• Use existing Microsoft account (Outlook/Hotmail) for faster setup
• Add business information, currency, and time zone

Set Up Microsoft Merchant Center

1. Navigate to "Tools" → "Merchant Center"
2. Create store with business details and website URL
3. Verify website ownership via meta tag or UET tag
4. Wait for verification approval (24-48 hours)

Create & Upload Product Feed

WooCommerce Users

Use CTX Feed plugin to generate optimized product feeds for Bing Shopping

Shopify Users

Install ShoppingFeeder or AdNabu apps for seamless feed management

Pro Tip: Set up automatic feed updates daily to ensure pricing and inventory accuracy.

Set Up Conversion Tracking

Essential UET Tags to Install:

✓ Dynamic remarketing tagging
✓ Purchase conversion tracking

✓ Add to cart (Lead) tracking
✓ Begin checkout (Lead) tracking

These tags provide crucial insights into campaign performance and help optimize for better ROI.

Launch Your First Campaign

1 Go to "Campaigns" → "Create Campaign"

2 Select "Sell products from your catalog"

3 Choose Standard (manual) or Smart (automated) Shopping

4 Set daily budget, target ROAS, and scheduling

Optimize Campaign Settings

Device Targeting

Focus on devices most relevant to your audience

Ad Distribution

Limit to Bing, Outlook, Yahoo networks for quality

Bidding Strategy

Start with Maximize Clicks, then switch to Target ROAS

Ready to Start?

Launch your first Bing Shopping campaign today

Start Free Trial Request Demo

2025 Updates

Microsoft Advertising in 2025: What's New & What You're Missing

AI-powered automation, CTV ads, and why it's not just a Google alternative anymore

Market Reality

A restaurant in New York discovered diners were taking 13 minutes longer to eat—not because they ate slower, but because they spent that time photographing their food first.

Similarly, marketers spend extra time on Google Ads while ignoring Microsoft's platform that delivers better ROI at lower costs.

2025 Market Statistics

• 1+ billion people reached worldwide
• 20% UK search market share
• 55% increase in LinkedIn engagement
• 30-50% lower CPCs than Google

Why Marketers Miss Out

• Focus on "trendy" platforms over profitable ones
• Ignore less saturated, higher-converting audiences
• Pay premium on Google for lower-value users
• Miss LinkedIn B2B targeting goldmine

What's New in Microsoft Advertising 2025

AI-Powered Advertising: Microsoft Copilot

Microsoft Copilot is transforming how advertisers create, manage, and optimize campaigns with deeper AI integration throughout 2025.

Automated Ad Copy Creation

Copilot generates ad variations based on performance data and search intent

Predictive Targeting

AI suggests new audiences most likely to convert

Performance Recommendations

Real-time campaign optimizations reducing manual work

Automated Budget Allocation

Intelligent budget shifts across channels to maximize conversions

Key Takeaway:

If you're not leveraging AI in your Microsoft Ads strategy, you're missing smarter automation, increased efficiency, and better-performing campaigns.

Microsoft Performance Max: AI-Driven Campaigns Evolve

Following Google's PMax success, Microsoft has expanded its own version with fully automated, AI-driven ad placements across the entire Microsoft ecosystem.

Bing Search

Outlook & MSN

Xbox & Windows

New Features in 2025:

Search Themes

Provide specific search intent themes to guide AI learning

Expanded Audience Targeting

More granular targeting options using LinkedIn profile data

Automated Creative Optimization

AI tests different ad combinations to find best performers

Best Practices for 2025:

• Ensure high-quality ad creatives and assets for AI optimization
• Use Search Themes to steer AI-driven targeting
• Regularly review PMax reporting for conversion insights

Connected TV (CTV) & Video Ads: Expanding Beyond Search

Microsoft is heavily investing in Connected TV and video advertising as streaming dominates consumer attention.

Extended Formats

45-second and 75-second video ads for CTV

AI Creative Tools

Repurpose existing assets into video ads

LinkedIn Targeting

B2B brands can advertise in premium video environments

Why This Matters:

Advertisers who previously relied only on search and display now have access to high-engagement video placements, dramatically increasing brand awareness and conversions.

Retail Media Growth: Microsoft's eCommerce Expansion

Retail media is booming, and Microsoft is doubling down with expanded partnerships allowing brands to run sponsored product ads directly within shopping platforms.

AI-Driven Dynamic Pricing

Automatically adjusts bids based on competitor pricing

Enhanced PLAs Analytics

Product Listing Ads now have enhanced performance tracking

How to Capitalize:

• Optimize product feeds with accurate descriptions and high-quality images
• Leverage AI-driven pricing automation to stay competitive
• Test different ad formats (carousel, sponsored brands) for best conversions

Microsoft Ads vs. Google Ads: 2025 Comparison

Factor	Microsoft Ads	Google Ads
Market Share	30% of desktop searches (US)	90% of total searches worldwide
Ad Costs (CPCs)	✓ Typically 30% lower than Google	Higher CPCs due to competition
Unique Targeting	✓ LinkedIn profile targeting	Google Audiences and YouTube
AI & Automation	Copilot-powered suggestions	Auto Apply & Smart Bidding

Lower CPCs

Great profitability driver

LinkedIn Targeting

Major edge for B2B brands

AI Automation

Beginner-friendly platform

Action Plan: Future-Proof Your Microsoft Ads Strategy

To stay competitive, advertisers need to adapt their strategies to leverage Microsoft's latest advancements.

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Start Using Copilot

Let AI assist in copywriting, budgeting, and audience discovery

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Adopt Performance Max

Use Search Themes and automated creative testing

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Diversify Ad Formats

Incorporate CTV and video ads for higher engagement

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Test LinkedIn Targeting

B2B advertisers should target by job function and company

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Leverage Retail Media

Use Sponsored Listings on Microsoft's shopping network

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Monitor Performance

Track AI recommendations and optimize based on data

The Bottom Line

Microsoft Advertising in 2025 is not just a Google Ads alternative—it's a must-have platform for digital marketers. With AI-powered automation, expanded audience targeting, and new ad formats like CTV and retail media, Microsoft Ads offers diverse opportunities to reach high-intent audiences at lower costs.

Marketers who embrace these changes early will gain a significant competitive edge. Start testing Microsoft's AI-driven features today and future-proof your ad strategy.

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