Microsoft Updates Plans For Performance Max
At a recent online meeting with brands, Microsoft executives spoke about a variety of updates to its advertising platforms that make it easier for advertisers to connect with specific audiences.
The company expects to launch video asset support for Performance Max (PMAX), Microsoft’s automated campaign type that uses AI to improve conversions, with hopes of starting a pilot in September. PMAX is one platform that can support multiple ad types.
PMAX also will increase integration with Google Search Ads 360 (SA360), a search engine management platform for enterprises that can connect with Microsoft Advertising through a direct API. The company says the project is still in development and timelines are not yet available.
Microsoft on Thursday released “on average” data for PMAX, an automated campaign type that uses AI to help advertisers maximize conversions across its advertising network data after launching earlier this year.
The platform on the surface seems similar to Google’s PMAX campaign platform, but thankfully, the two companies use different capitalizations for their acronym. When Microsoft launched its version of the integrated ad platform, a company spokesperson did not think the name would confuse advertisers, but it certainly puts a strain on this reporter.
Microsoft’s PMAX reduces CPAs by 32% on average, according to the company, and increase the return on ad spend (ROAS) by more than 3x compared with running search campaigns alone.
This also is the case for advertisers that are already running search and audience ads. Implementing PMAX drove a 48% CPA decrease — which means more conversions that are not captured by existing campaigns and a boost in advertisers’ overall return on investment, the company said.
The AI built in helps advertisers find engaged users across its network. Consumers who were not exposed to PMAX ads such as those searching on retail sites in the United States were found 2.6x more likely to visit the landing page and up to 4.2x more likely to make a conversion.
Microsoft also flipped the switch off on its DEI team, but said it would continue to support the cause, having decided to scale back on initiatives and related programs.
Business Insider reported that as of July 1, the company let an unknown number of employees go due to “changing business needs.” It’s unclear how the move will change the company’s ad business.
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