Microsoft alters multi-channel advertising strategy and ceases bid modifiers for audience ads

Microsoft has updated its multi-channel advertising approach and will be available to all advertisers starting on February 21st. As part of this change, the bid modifier for audience ads will no longer be displayed in campaign settings. Microsoft explains that instead of manually adjusting participation in the audience network with positive or negative bid modifiers, advertisers just need to set their goals and Microsoft Advertising will optimize their campaigns across channels for maximum efficiency and best return on investment.

Microsoft conducted a study on accounts that combined search and audience traffic and found that advertisers get the most benefit by using both Microsoft Search and the Audience Network. The study showed that people who saw a brand’s ad on both networks visited the website 2.6 times more often than those who only saw the ad on search. Microsoft notes that this increased website traffic leads to higher conversion rates, with users converting 6.6 times more frequently. This emphasizes the significance of utilizing both search and audience together, as reaching the same user through multiple channels can enhance engagement and sales.

Early tests. Microsoft has been piloting the new multi-channel approach over the past year. “After strong beta results, we’re rolling out this experience to all advertisers. Our results show that accounts already using multi-channel management have seen 14% higher conversion rates at 21% lower cost per acquisition (CPA).”

Microsoft’s new features. Microsoft has been working to enhance its advertising platform, with the goal of doubling its ad business to $20 billion, although no timeline was provided. Despite some uncertainty among brands, their FY23Q2 earnings showed a slight decline in advertising spend, but with a 5% increase in ad revenue and a 14% increase in LinkedIn revenue. The many changes and updates made by Microsoft over the last year could have contributed to this growth, and as Google advances automation and limits advertiser control, Microsoft may be seen as a viable alternative for advertisers.

You can read the announcement from Microsoft here.