Microsoft Ads (formerly Bing Ads) is the second-largest pay-per-click advertising platform after Google Ads. Through the Microsoft Search Network, your ads can appear on Bing, Yahoo, AOL, MSN, and hundreds of partner sites — reaching a combined 12 billion monthly searches that Google doesn’t capture.
Most advertisers ignore Microsoft Ads because they’re focused on Google. That’s an opportunity: lower competition on Microsoft means lower CPCs, often 30-60% cheaper than equivalent Google campaigns, while reaching an audience that skews older, more affluent, and desktop-heavy.
Microsoft Ads vs. Google Ads
| Dimension | Microsoft Ads | Google Ads |
|---|---|---|
| Market share (US search) | ~27% | ~65% |
| Average CPC | 30-60% lower | Higher |
| Audience demographics | 45+ age skew; higher income; desktop-dominant | Broader demographic spread |
| Device split | 70%+ desktop | More balanced mobile/desktop |
| LinkedIn integration | Native (target by job title, company, industry) | Not available |
| Import from Google | Native import tool | N/A |
| Best for | B2B, finance, legal, healthcare, older consumer demos | Broad audience reach |
The Microsoft Ads opportunity: If you’re running Google Ads with reasonable ROAS, Microsoft Ads can typically add 10-25% more conversions at lower CPAs by capturing your audience on Microsoft’s properties. For B2B advertisers, LinkedIn profile targeting makes Microsoft uniquely powerful.
Setting Up Microsoft Advertising
Step 1: Create a Microsoft Advertising Account
Go to ads.microsoft.com and click “Sign Up.” You can use an existing Microsoft account (Outlook, Hotmail) or create a new one.
Account structure mirrors Google Ads:
- Account → Campaigns → Ad Groups → Ads and Keywords
Step 2: Import from Google Ads (Recommended Starting Point)
If you’re already running Google Ads, the fastest way to launch Microsoft Ads is to import your existing campaigns:
- In Microsoft Ads: Tools → Import Campaigns → Import from Google Ads
- Sign in with your Google account
- Select which campaigns to import
- Configure import settings (adjust bids if needed — start lower, since Microsoft CPCs are lower)
- Review and confirm the import
What imports: Campaigns, ad groups, keywords, ads, audiences, conversion tracking settings.
What to review after import:
- Bids: Reduce bids by 20-30% initially — Microsoft’s lower competition typically requires lower bids for equivalent placement
- Keyword match types: Confirm match type settings carried over correctly
- Negative keywords: Import these too — critical for preventing irrelevant traffic
- Ad extensions: Some extensions may need to be recreated
What doesn’t import: Some ad extensions, specific audiences from Google that have no Microsoft equivalent, some smart bidding settings.
Step 3: Set Up Microsoft Ads Conversion Tracking
Like Google Ads, Microsoft needs conversion tracking to optimize campaigns.
Setup options:
- UET Tag (Universal Event Tracking): Microsoft’s equivalent of Google’s conversion tag. Install on your website via GTM or directly in HTML.
- Import Google Ads conversion tracking: If you’ve linked Google Ads to Microsoft and they track the same goals, you can import conversion data from Google.
Install the UET Tag:
- Tools → UET Tags → Create Tag
- Copy the tag code and install on every page of your website (via GTM recommended)
- Define conversion goals: URL destination, event-based (button click, form submission), or duration
Microsoft Ads Campaign Types
Search Campaigns
Text ads appearing in Bing, Yahoo, and MSN search results when users search for your keywords.
Identical to Google Search: Campaigns, ad groups, keywords (broad/phrase/exact match), responsive search ads with multiple headlines and descriptions, ad extensions.
Differences from Google:
- Responsive search ads use the same format (up to 15 headlines, 4 descriptions)
- Ad extensions are called “Ad Extensions” (same functionality, slightly different names in the UI)
- Smart bidding options (Target CPA, Target ROAS, Maximize Conversions) — all available
Microsoft Audience Ads (Display)
Image and native ads running on Microsoft’s Audience Network — which includes MSN.com, Outlook.com, Microsoft Edge, and thousands of partner sites.
Formats: Responsive audience ads (similar to Google’s Responsive Display Ads), image ads in standard banner sizes.
Targeting: Interest audiences, remarketing, LinkedIn profile targeting (see below).
Performance Max (Microsoft)
Microsoft launched its own Performance Max campaign type — similar to Google’s PMax, running across Search, Shopping, Audience Network, and LinkedIn from a single campaign. Uses AI to optimize across all channels.
Best for: Advertisers who want maximum reach with minimal campaign management complexity.
Microsoft Shopping Campaigns
Similar to Google Shopping — product listing ads showing product images, titles, and prices in search results. Requires Microsoft Merchant Center (equivalent to Google Merchant Center) and a product feed.
Shoppers who search on Bing and buy are high-intent. Bing Shopping CPCs are significantly lower than Google Shopping for most categories.
LinkedIn Profile Targeting: Microsoft Ads' Key Differentiator
Microsoft owns LinkedIn. This means Microsoft Ads uniquely allows you to target search and audience campaigns based on LinkedIn profile data:
- Job title
- Job function (e.g., Marketing, Sales, Engineering)
- Industry (e.g., Technology, Financial Services)
- Company name
- Company size
- Seniority level
Why this matters for B2B: Most B2B buyers research on search engines, not just LinkedIn. With Microsoft Ads LinkedIn targeting, you can show paid search ads on Bing specifically to CFOs, Marketing Directors, or employees at target accounts — without paying LinkedIn’s CPCs (which are typically 3-5x higher than Microsoft Ads).
Practical application:
- Run competitor keyword campaigns targeting people with “Software Engineer” or “CTO” job titles at companies in your target industry
- Adjust bids upward for LinkedIn-defined audiences that match your ICP
- Build awareness campaigns on the Audience Network targeted by job function and company size
Unique Features of Microsoft Ads
Audience Intelligence
Microsoft’s audience tools leverage data from Bing searches, LinkedIn, Xbox, and Microsoft products — creating more deterministic (logged-in user) data than Google’s probabilistic audience model.
In-Market Audiences: Users actively researching categories based on Bing search behavior. The categories are similar to Google’s In-Market audiences.
Custom Audiences: Upload customer lists (emails, phone numbers) and Microsoft matches them to user accounts across Microsoft properties.
Similar Audiences: Find new users who behave like your existing customers or website visitors.
Microsoft Clarity Integration
Microsoft Clarity is Microsoft’s free website behavior analytics tool (competitor to Hotjar). If you use Clarity, Microsoft Ads campaign data integrates directly — letting you see heatmaps and session recordings filtered by ad campaign or audience.
Ad Extensions (Now Called "Assets")
Microsoft Ads supports all the major extensions:
- Sitelinks, callouts, structured snippets
- Call extensions
- Location extensions
- Price extensions
- Lead form extensions (capture leads directly from the ad)
- Video extensions
Microsoft Ads Optimization
Bid Adjustments
Microsoft Ads supports dimension-level bid adjustments similar to Google:
- Device: Adjust bids up or down for desktop, mobile, tablet
- Location: Increase bids for high-converting geographic areas
- Day and time: Increase bids during business hours for B2B; decrease overnight
- Audience: Apply bid multipliers for remarketing audiences or LinkedIn-defined segments
- Demographics: Adjust bids by age, gender
B2B bidding optimization: In most B2B campaigns, desktop traffic converts significantly better than mobile. Start with a -30 to -50% mobile bid adjustment and adjust based on actual conversion data.
Search Term Analysis
Review the Search Terms report weekly. Unlike Google, Microsoft Ads shows search terms with fewer restrictions — you often see more granular data.
Use the report to:
- Add negative keywords for irrelevant searches
- Identify high-performing search terms to extract into dedicated ad groups with specific bids
- Discover new keyword opportunities your Google Ads campaigns missed
Performance Benchmarks
| Industry | Average CPC | Average Conversion Rate |
|---|---|---|
| B2B SaaS | $3-8 | 2-4% |
| Legal services | $4-15 | 3-6% |
| Financial services | $3-12 | 2-4% |
| Healthcare | $2-7 | 3-5% |
| E-commerce | $0.80-3 | 2-4% |
Microsoft Ads typically delivers 20-40% lower CPCs than Google in the same categories, while conversion rates are comparable or slightly lower (smaller audience volume). Net result: comparable or better CPA with more budget efficiency.
Getting Started: The 30-Day Plan
Week 1: Import existing Google campaigns, adjust bids downward, install UET tag, verify conversion tracking.
Week 2: Add LinkedIn audience targeting to existing ad groups as bid adjustments. Review initial search term data, add negative keywords.
Week 3: Create shopping campaigns (if e-commerce). Launch Audience Network campaigns for remarketing.
Week 4: Analyze first-month performance. Identify top-performing keywords and increase bids. Identify waste and add negative keywords or pause underperformers. Set ongoing optimization cadence.
Create Microsoft Ads search copy, responsive ad headlines, and audience-targeted content with AdsMG.ai — AI-powered marketing content for search advertisers.
Last updated: April 27, 2026
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