Microsoft has introduced several new advertising formats and tools across its platforms, including Bing, Edge, Microsoft Start, and Copilot-related experiences, according to a March 28 announcement.
These updates are designed to help brands reach users in search-like contexts with AI-native placements. The company said the new ad formats can appear near AI-generated answers but will not be shown alongside private Copilot conversations. Access to these placements is being rolled out gradually and varies by campaign type. Reporting for these AI placements is available in some campaign views but may not always be easy to find.
One of the key features is Showroom ads, which allow users to explore products, compare options, and ask questions directly within the search experience without needing to click through to a landing page. Early data from Microsoft suggests that these ads have higher engagement and conversion rates than standard search ads.
Another update is Copilot Checkout, which enables shoppers to move from researching products with AI assistance directly into making a purchase within the Microsoft environment. Shopify merchants are automatically eligible for this feature while others can apply separately.
Brand Agents let companies deploy trained AI assistants on their websites that understand product catalogs and brand voice while handling common customer questions. Performance data from sessions assisted by these agents is tracked separately for better visibility into guided interactions versus standard browsing sessions.
Additionally, Copilot within Microsoft Advertising now offers automated generation of headlines, descriptions, keyword suggestions, and custom images based on landing page URLs. This tool aims to speed up campaign creation but should be used as a starting point rather than replacing hands-on management entirely.
While Google remains dominant in terms of volume with its own suite of AI-driven advertising tools like Performance Max and Demand Gen campaigns, Microsoft's offerings present incremental opportunities for advertisers already using its platform. The company notes that cost-per-click rates remain lower than Google's at this stage due to lighter competition on these new placements.
However, Microsoft's share of the search market remains limited—Bing holds roughly 10%—so advertisers should weigh potential reach against existing resources before investing heavily in these new surfaces.
