osoft revises multichannel advertising strategy and eliminates bid modifiers in audience ads
Microsoft has updated its multi-channel strategy. All advertisers will have access to it starting February 21st. The audience ad bidding modifier will not be visible in campaign settings.
Microsoft states that instead of manually adjusting audience participation using negative or positive bid modifiers, you can simply define your goals and Microsoft Advertising will optimize your campaigns across all channels. This will make it easier to manage your campaigns, find the most valuable users in each auction and drive strong ROI.
Making new changes. Microsoft did research on accounts that used both audience traffic and search. It found that advertisers achieve the best results when they combine their efforts with the Audience Network and Microsoft Search. The research revealed that people who see a brand’s advertisement on both networks visit the site 2.6 times more often than those who only view the ad via search. Microsoft claims that this increased website traffic leads to higher conversion rates. Users convert 6.6 times more often. This shows the importance of using both search and audience together. Multiple channels can help increase engagement and sales.
Early testing. Microsoft has been testing the multi-channel approach for the past year. We’re now rolling out this experience to all advertisers, after strong beta results. Our results showed that multi-channel accounts have experienced 14% higher conversion rates and 21% lower cost per acquire (CPA) than those who did not use it.
More Microsoft updates and changes. Microsoft has made significant efforts to improve its advertising platform. They announced last year ambitious plans to double its ad business to $20 Billion, but no timeframe was provided.
Some brands remain uncertain. According to their FY23Q2 earnings, advertising spending fell slightly more than they expected. About 5% of the 220,000 employees were also affected by mass layoffs. Despite mediocre performance and a rise in ad revenue, LinkedIn revenue increased 14%.
It is possible that Microsoft’s recent updates and changes have been enough to increase its revenue. Advertisers could view Microsoft as a hail Mary, given Google’s push for automation and the fact that advertisers are no longer in control.
Dig deeper. The announcement by Microsoft can be found here.
Why we care. Advertisers have access to innovative tools, channels and creative options from Microsoft. Using both search and audience together can lead to better performance and boost in your campaigns. These advancements might not be fully realized if the platform isn’t adopted more widely.
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