8 Microsoft Advertising updates including predictive targeting and generative AI for RSAs

Microsoft Advertising made several announcements over the past month about advertising opportunities for July 2023.

These updates range from introducing Predictive Targeting, an AI-based tool to increase ad conversions, to expanding real estate ads to include vacation rentals.

Learn how Microsoft aims to help advertisers reach more customers with greater efficiency and cost savings.

1. Predictive Targeting

Microsoft Advertising introduced Predictive Targeting, an AI-based advertising tool that uses machine learning to automatically identify and target new audiences to increase conversions, which could save advertisers time and increase campaign efficiency.

While it offers flexible application with existing strategies, potential downsides include loss of audience control and potentially wasted ad spend or brand damage if the wrong audiences are exposed to ads.

2. Generative AI and RSA

8 Microsoft Advertising updates including predictive targeting and generative AI for RSAsScreenshot by Microsoft, July 2023

Microsoft has integrated generative AI into Responsive Search Ads (RSA) creation and editing, providing AI-generated headlines and descriptions based on the advertiser’s final URL.

The updated experience reportedly offers well-categorized, high-quality, and diverse recommendations in 35 recognized languages, allowing advertisers to select multiple suggestions with a single click.

You can also opt for automatic asset generation, which dynamically creates assets as ads are served, allowing for greater scalability and relevancy.

3. RSA IF functions

8 Microsoft Advertising updates including predictive targeting and generative AI for RSAsScreenshot by Microsoft, July 2023

IF capabilities for RSAs could enable sophisticated targeting and ad customization based on device and audience.

This would reduce the need for separate campaigns and allow for customized messaging for specific user devices or audience segments.

4. Automated multimedia displays within DSA groups

Automated multimedia ads within Dynamic Search Ads (DSA) groups reportedly leverage AI to automatically generate engaging, visually appealing, and performance-optimized ads based on your website’s content.

By combining user resources with machine learning technology, these ads are displayed on the right side of the search results page and exclusively, with only one multimedia ad appearing per page and advertiser.

5. Real estate advertisements for vacation rentals

Microsoft has expanded its Property Promotion Ads, which are highly visual ads designed to inspire potential travelers, including vacation rentals and hotels.

It enables travel advertisers to display more property listings on Microsoft platforms.

Offering a rich, engaging experience with full control over images and captions, these ads could drive more bookings and save advertisers time with premium placements and automated management through familiar ad management workflows in Microsoft Hotel Center.

6. Universal event tracking improvements

Microsoft Advertising has improved its Universal Event Tracking (UET) tag dashboard, enabling real-time troubleshooting and monitoring of UET events for more efficient testing and quality assurance.

In addition, the UET overview tab now offers an extended lookback period to check your tag’s performance in various dimensions such as events, parameters, and event types.

7. Data-driven attribution becomes available

8 Microsoft Advertising updates including predictive targeting and generative AI for RSAsScreenshot by Microsoft, July 2023

Data-Driven Attribution (DDA) reports became widely available and use advanced machine learning to calculate each ad interaction’s actual contribution to conversion, which differs from the traditional Last Click Attribution (LCA) model.

This model comparison report, which you can access from Reports > Standard Reports > Performance > Conversion Model Comparison, should provide in-depth analysis across a wide range of metrics in the “Keyword” section.

8. Deprecation of the old functions of the keyword planner

Effective August 21, 2023, Microsoft Advertising is retiring several legacy features in Keyword Planner, including various service operations and the product category feature, as they are deprecated and incompatible with the system.

Help improve Microsoft Advertising

Microsoft Advertising’s latest announcements underscore its commitment to fostering a more effective and intelligent advertising ecosystem.

Advertisers should look forward to continuous targeting improvements, more powerful analytics, streamlined processes, and always do their part by providing feedback.

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