Why Microsoft Ads Deserves a Place in Your Paid Media Strategy
Microsoft Ads (formerly Bing Ads) reaches over 1 billion monthly unique visitors across Bing, Yahoo, AOL, and partner sites. That is a fraction of Google’s search volume, but the audience is different in ways that matter for advertisers.
The average Microsoft Ads user skews older, higher income, and is more likely to be a decision-maker at work. That is not surprising when you consider that Microsoft Edge is the default browser on every Windows PC, and Bing is the default search engine in Microsoft products including Outlook, Teams, and Copilot. Many corporate environments have not switched these defaults, which means B2B searches and desktop-heavy industries are disproportionately represented on the Microsoft Search Network.
The practical result: lower CPCs (typically 30-50% cheaper than Google for the same keywords), less competition, and an audience that converts well for certain industries. If you are only running Google Ads, you are leaving money on the table.
This guide covers everything you need to know to set up, manage, and optimize Microsoft Ads campaigns effectively.
Microsoft Ads vs Google Ads: Key Differences
If you already manage Google Ads, Microsoft Ads will feel familiar. The interface, campaign structure, and bidding options are similar by design — Microsoft has intentionally made it easy to port campaigns over. But there are important differences.
Audience demographics. Microsoft’s audience is generally older (35-54 is the largest segment), higher household income ($75K+), and more desktop-heavy than Google’s. This matters for targeting and bid adjustments.
Search volume. Microsoft has roughly 10-15% of the search market depending on the country. The US and UK have the strongest Microsoft Ads inventory. Australia and parts of Europe have lower volume. The UAE has limited but growing Microsoft Search traffic.
Competition. Most advertisers focus their budgets on Google. This means fewer bidders on Microsoft for the same keywords, which translates to lower CPCs and better ad positions for the same bid.
Import from Google Ads. Microsoft Ads has a direct import tool that pulls in your Google Ads campaigns, ad groups, keywords, ads, and extensions. You can have a Microsoft Ads account running in under 30 minutes if you already have a Google Ads setup. But do not just import and forget — you will need to adjust bids, budgets, and targeting for the Microsoft audience.
LinkedIn Profile Targeting. This is Microsoft’s unique advantage. You can layer LinkedIn targeting (company, industry, job function) on top of search campaigns. This is extremely powerful for B2B advertisers who want to bid higher when they know the searcher works at a target company or holds a senior title. No other search platform offers this.
Setting Up Your Microsoft Ads Account
The setup process follows the same logic as Google Ads:
Step 1: Create your account. Go to ads.microsoft.com and sign up. You can use an existing Microsoft account. Set your time zone, currency, and billing.
Step 2: Import from Google Ads (recommended). Go to Import > Import from Google Ads. Sign in to your Google account and select the campaigns you want to import. Microsoft will pull in campaign structure, keywords, ads, extensions, and settings. Review the import summary carefully — some features do not translate 1:1 (for example, Google’s Smart Bidding strategies may need to be remapped).
Step 3: Adjust bids and budgets. Do not use the same bids as Google. Since CPCs are lower on Microsoft, you can often start at 70-80% of your Google bids. Set daily budgets conservatively at first (50% of Google) until you see how the traffic performs. You can always increase later.
Step 4: Set up conversion tracking. Install the UET (Universal Event Tracking) tag on your site. This is Microsoft’s equivalent of the Google Ads tag. If you use Google Tag Manager, there is a built-in UET tag template. Create your conversion goals in Microsoft Ads (lead form submissions, purchases, phone calls) mapped to UET events.
Step 5: Enable auto-tagging. This appends Microsoft click IDs to your URLs for accurate conversion attribution. Go to Account Settings > URL Options > Auto-tagging > On.
Campaign Structure Best Practices
The campaign structure principles that work in Google Ads apply here with one key difference: you have less volume to work with. That means you need to consolidate more aggressively.
Start with fewer campaigns. If you have 10 Google Ads campaigns, you might only need 3-5 on Microsoft. Group keywords more broadly because splitting them into too many campaigns means each one gets too little volume for the bidding algorithm to optimize.
Use the same keyword match types but tighter. Broad match on Microsoft tends to match more loosely than on Google. Start with phrase and exact match, then expand to broad only on keywords where you have enough conversion volume and a solid negative keyword list.
Mirror your best-performing Google campaigns first. Do not import everything. Start with the campaigns that drive the most revenue or leads on Google. Get those working on Microsoft, then expand to additional campaigns once you have conversion data.
Separate by network. Microsoft’s partner network (syndicated search partners) often has lower quality traffic than Bing itself. Run separate campaigns for Bing Search Only and the Audience Network so you can control bids independently.
LinkedIn Profile Targeting: The B2B Advantage
LinkedIn Profile Targeting is Microsoft Ads’ killer feature for B2B advertisers. It lets you overlay LinkedIn data on search campaigns to reach specific professional audiences.
You can target by:
Company. Target searches from employees of specific companies. If your ideal customers are Fortune 500 companies, you can bid higher when someone from those companies searches for your keywords.
Industry. Target by LinkedIn industry categories (Technology, Financial Services, Healthcare, etc.). Useful for B2B products that sell into specific verticals.
Job Function. Target by department: Marketing, Finance, IT, Human Resources, Sales, Engineering, etc. If you sell marketing software, target Marketing and Sales functions.
The best approach is not to use LinkedIn targeting as an exclusive filter (that would reduce your volume too much) but as a bid modifier. Set a +30-50% bid increase for LinkedIn segments that match your ideal customer profile. You still reach everyone searching your keywords, but you bid more aggressively for the high-value searches.
This is particularly powerful for industries like SaaS, professional services, enterprise software, and financial services where the value of a lead from a decision-maker at a target company is significantly higher than a lead from a small business.
Bidding Strategies on Microsoft Ads
Microsoft Ads offers similar automated bidding strategies to Google, but the algorithms have less data to work with (lower volume). This affects your strategy choice.
Enhanced CPC. Adjusts your manual bids based on the likelihood of conversion. A good starting point for new campaigns because it gives you control while still leveraging Microsoft’s data. Works well even with low conversion volume.
Target CPA. Sets bids to hit a target cost per acquisition. Needs at least 15 conversions per campaign in the last 30 days to work well. Below that threshold, the algorithm does not have enough data to optimize reliably.
Target ROAS. Sets bids to hit a target return on ad spend. Best for ecommerce with dynamic revenue values. Needs at least 15 conversions and consistent revenue data. Read the full bidding strategies breakdown for guidance on when to use each approach.
Maximize Conversions / Maximize Conversion Value. Spends the full budget to get the most conversions or revenue. Use only if your budget is fixed and you trust the algorithm with uncapped bids. Monitor CPA closely — without a target, the algorithm optimizes for volume, not efficiency.
My recommendation for new Microsoft Ads accounts: Start with Enhanced CPC for the first 30-60 days while you build conversion data. Then switch to Target CPA or Target ROAS once you have 20+ conversions per campaign per month. This gives the algorithms enough signal to optimize without wasting budget during the learning period.
Ad Copy for Microsoft Ads
Microsoft Ads supports RSAs just like Google. The same RSA writing principles apply: write 15 diverse headlines across multiple categories, use 4 distinct descriptions, and pin sparingly.
Two Microsoft-specific notes:
The audience responds to different messaging. Microsoft’s older, higher-income audience tends to respond better to professional, trust-focused messaging than to aggressive discount-driven copy. Lead with expertise and results rather than “50% off” promotions.
Desktop-first copy. Since Microsoft skews heavily desktop, your ads are more likely to show all 3 headlines and both descriptions than on Google (where mobile truncation is more common). Take advantage of this by putting more detail in headlines 2-3 and description 2.
Microsoft Audience Network
Beyond search, Microsoft has an audience network that serves native ads across MSN, Outlook.com, Microsoft Edge, and partner sites. Think of it as Microsoft’s equivalent to the Google Display Network, but with native ad formats that blend into content feeds.
The Audience Network is useful for:
Remarketing. Show ads to people who visited your site while they browse MSN, Outlook, and partner sites. The format is less intrusive than display banners and often gets better engagement. Set up your remarketing strategy to include Microsoft alongside Google and Meta for full coverage.
In-market audiences. Target people who Microsoft’s data shows are actively researching products or services in your category. This works well for both B2B and B2C when paired with relevant messaging.
LinkedIn-based audiences. The LinkedIn Profile Targeting mentioned earlier also works on the Audience Network. You can run native ads targeting specific companies, industries, and job functions across Microsoft’s content properties.
Start with search campaigns first. Only add Audience Network campaigns once your search campaigns are profitable and you want to expand reach.
Conversion Tracking and Attribution
Microsoft Ads uses the UET (Universal Event Tracking) tag for conversion tracking. This is a single tag that goes on every page of your site (similar to the Google tag).
Install UET via GTM. In Google Tag Manager, go to Tags > New > Microsoft Advertising Universal Event Tracking. Enter your UET Tag ID (found in Microsoft Ads > Conversion Tracking > UET tags). Set the trigger to All Pages.
Create conversion goals. In Microsoft Ads, go to Conversion Tracking > Conversion Goals. Create goals for your key actions: form submissions, purchases, phone calls. Map each goal to a UET event or destination URL.
Enable offline conversion import. If you track leads through a CRM, Microsoft Ads supports offline conversion import via MSCLKID (their equivalent of GCLID). Upload conversion data from your CRM to tell Microsoft which clicks turned into actual sales. This significantly improves automated bidding because the algorithm optimizes for real business outcomes, not just form fills.
Cross-device tracking. Microsoft uses sign-in data from Microsoft accounts to track users across devices. Enable this in your UET settings for more complete conversion attribution.
Optimization Checklist for Microsoft Ads
Run through this checklist monthly to keep your Microsoft Ads account performing well:
1. Review search terms report and add negative keywords. Microsoft broad match can be aggressive.
2. Check device performance. Microsoft skews desktop, but if mobile CPA is significantly worse, reduce mobile bids.
3. Compare performance against Google Ads. Identify keywords where Microsoft delivers better CPA and shift budget toward them.
4. Review LinkedIn targeting bid modifiers. Are the professional segments actually converting better? Adjust modifiers based on data, not assumptions.
5. Check Audience Network performance separately from Search. Pause it if CPA is significantly higher than Search.
6. Update ad copy every quarter. Replace low-performing headlines and descriptions.
7. Review import settings. If you reimported from Google, check that no unwanted changes came through.
8. Verify conversion tracking. Confirm UET tag is firing and conversion counts are reasonable.
For a more comprehensive audit framework that covers both Google and Microsoft accounts, use the PPC Audit Checklist.
Common Mistakes With Microsoft Ads
Import and forget. The most common mistake. You import from Google, set it live, and never look at it again. Microsoft needs its own bids, budgets, negative keywords, and optimization. Treat it as a separate channel.
Using the same budget as Google. Microsoft has less volume. A $500/day budget on Google might only spend $50-100/day on Microsoft. Start with a lower budget and increase based on performance, not parity with Google.
Ignoring the partner network. Syndicated search partners often have poor quality traffic. Monitor performance by network and reduce bids or exclude partners that are not converting.
Not using LinkedIn targeting. This is Microsoft’s unique advantage and most B2B advertisers leave it turned off. Even if you are not sure which LinkedIn segments to target, start with a 20% bid increase on your ideal industries and job functions, then refine based on data.
Expecting Google-level volume. If you set a $10K monthly budget and it only spends $2K, that is normal. Microsoft has lower search volume. Judge it on efficiency (CPA, ROAS), not on how much it can spend.
When Microsoft Ads Works Best
Microsoft Ads is not a fit for every business. It works best when:
Your audience is B2B or professional. The LinkedIn targeting plus the business-user skew makes Microsoft the best search platform for reaching professionals.
You sell to a desktop-heavy audience. If your product is primarily used or purchased on desktop (SaaS, professional services, enterprise tools), Microsoft’s desktop skew works in your favor.
Your Google Ads account is already profitable. Microsoft Ads is best as a supplement to Google, not a replacement. Get Google working first, then expand to Microsoft for incremental reach at lower CPCs.
You are in the US or UK. These markets have the highest Microsoft Ads volume. Australia, Europe, and the Middle East have lower but growing inventory.
If you want help setting up or optimizing your Microsoft Ads campaigns, here is how we can help.
Not sure what good performance looks like? Check our ROAS benchmarks by industry to see how your campaigns compare.
Frequently Asked Questions
Is Microsoft Ads worth it for small businesses?
Yes, if your target audience uses desktop search and you are already running Google Ads profitably. Microsoft Ads often delivers lower CPCs (30-50% cheaper than Google for the same keywords) because there is less advertiser competition. For small businesses with limited budgets, this means more clicks and conversions per dollar. Start by importing your best-performing Google campaigns and setting a conservative daily budget. Many small businesses find that Microsoft delivers 10-20% of their total paid search leads at a significantly lower cost per lead.
How do I import my Google Ads campaigns to Microsoft Ads?
In Microsoft Ads, go to Import > Import from Google Ads. Sign in to your Google account and select the campaigns you want to bring over. Microsoft will import campaign structure, keywords, ads, extensions, and most settings. Before finalizing, review the import summary: check that bid strategies mapped correctly (some Google strategies do not have exact Microsoft equivalents), reduce bids by 20-30% (since CPCs are lower), and set daily budgets at 50% of your Google levels until you see performance data. After importing, add the UET tag to your site for conversion tracking.
What is the minimum budget for Microsoft Ads?
There is no official minimum budget, but practically you need enough to generate meaningful data. For most industries, $500-1,000 per month is a reasonable starting point. This typically generates enough clicks and conversions to evaluate whether the channel is working for your business. B2B keywords with very low search volume might work with even less. The key is to start small, measure results for 30-60 days, and then increase budget on campaigns that are performing well. Do not spread a small budget across too many campaigns — focus on 1-3 campaigns that target your highest-value keywords.
Does Microsoft Ads support Performance Max campaigns?
Microsoft has Performance Max campaigns (sometimes called PMax) that work similarly to Google’s version. They serve ads across Search, Audience Network, and other Microsoft properties using automated targeting and bidding. However, the inventory is smaller than Google’s PMax, and the algorithm has less data to work with. I recommend starting with standard Search campaigns on Microsoft and only testing PMax once your Search campaigns are profitable and you want incremental reach. The setup process mirrors Google’s: provide text assets, images, audience signals, and conversion goals, and the system optimizes across placements.
Can I run Microsoft Ads alongside Google Ads without cannibalization?
Yes. Microsoft Ads and Google Ads serve different search audiences — someone searching on Bing will not see your Google ad, and vice versa. There is no cannibalization between the two platforms. The overlap happens when a user searches on both platforms at different times, but this just means you have more touchpoints with that user. Track cross-platform performance using UTM parameters and your analytics tool to understand how each channel contributes. Most advertisers find that Microsoft delivers incremental reach rather than overlapping with Google traffic.
