osoft Advertising launches Chat API for Publishers //

Microsoft Advertising has announced today a new chat API that will allow publishers, apps, and online services deliver ads via chat. The new Chat API allows sites and apps the ability to customize their chat experiences, select ad formats which work best for them, and include relevant ads for their audience.

Microsoft announced last week, which included new visual features for Bing Chat. Bing Chat users will be able to access more visual elements and make it easier for them to use as part of the Edge experience. This includes new features such as exporting, sharing and chat history.

Bing is used by over 100 millions users daily, with Microsoft seeing about a third using the chat feature daily. Bing Chat users have engaged in more than half a million chats since it went live in February. And 15% of the users are using this chat to create new content.

Why do we care. Video chats provide more context to ads. Microsoft has released the API to enable publishers and partners to work together to create this next generation of chat experiences.

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What you can expect The new Chat API allows publishers to create their own chat experiences for sites and apps that serve ads from Microsoft or others.

Microsoft encourages experimentation, while also promising to not disrupt the advertising supply chain. Microsoft Advertising advertisers will appear in chats according to the same outcome-based metrics used for other Microsoft assets such as search and video games.

Kya Sainsbury Carter, corporate vice-president, Microsoft Advertising, said: “From what we’ve heard, advertisers don’t want to disrupt right now.” “Marketers have had a crazy 3 years with pandemic, war, and the economy. They’re tired and they don’t have enough resources.” “People aren’t seeking wild disruption but rather transformation and evolution that will help them move forward their businesses in a manner that they can actually execute — and this is the perfect example of that type transformation.”

Monetizing Chat Experiences. With the new API, publishers can monetize their chat experience by using Microsoft Advertising’s learnings on how to deliver relevant ads to the chat.

Sainsbury Carter said, “Our goal is to work with [publishers] to help them understand the importance of monetization and be an expert in that area. We want to make sure they know what will be best for their audience and how to create the best experiences.”

Verticals of the new Bing. Microsoft launched Bing 2.0 in February. This version added chat functionality to its search. Microsoft serves ads vertically, one by one, in the chats so that they don’t disrupt.

The company is currently launching hotel ads. Then, they will focus on verticals such as travel and real-estate.

Sainsbury Carter said that integrating [ads] in chat and the conversation flow is very powerful when you ask about these topics. We’re also focused on getting the basics correct. We’re focusing on the overall optimization of the ads experience, and fine-tuning the market to make sure we’re showing relevant ads based on the deeper context we can gain from the conversational mode.

The context is the most important thing. Microsoft chat has not had many ads, but consumers have responded positively.

Sainsbury Carter said that “we’re seeing consumers who are open to ads and engage with them.”

Bing Chat queries are three times as long on average as traditional search terms. The context is much more rich, which allows for more relevant chat ads than traditional search.

Sainsbury Carter explained that if you type in a long search query, the search engine will pick out a few words to search for and then serve you what it believes you want. With the longer chat period, there is more to say. But it’s the context you’re looking for. As long as our ads are relevant, engagement should be high.

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