Microsoft unveils new AI tools to ‘transform search & advertising’


Microsoft Advertising has unveiled a series of new generative AI tools for advertisers.

The new features, Conversational Ad experiences, Ads for Chat API, and Copilot, are part of the tech giant’s mission to transform search and advertising with generative AI.

Here’s a recap of the big announcements to come from Microsoft’s Surface and Copilot event in New York…

1. Compare and Decide Ads

Microsoft is rolling out a series of fresh ad formats tailored specifically to the Bing Chat experience, starting with its newest ad product, Compare and Decide Ads.

The new format will allow online shoppers to compare different products using criteria they find most valuable.

Compare and Decide Ads will run across all verticals that have relevant feed data, including retail, travel and auto.

Microsoft is planning to launch Compare and Decide Ads in close beta in early 2024.

2. Ads for Chat API

Microsoft has announced the first partners fir its new product, Ads for Chat API; Snapchat and Axel Springer.

Snapchat’s My AI chatbot, which has been used by more than 150 million people worldwide, leverages the tech to serve Sponsored Links in relevant content and experiences that “feel natural to the content flow”.

Meanwhile, Axel Springer’s Hey_ product on BILD.de, powered by Microsoft Azure Open AI Services and supported by Microsoft Advertising’s Ads for Chat API, helps advertisers connect with up to 17 million daily BILD.de users.

Microsoft has said it will continue evolving its API offering based on the feedback of its advertisers and partners. Looking to the future, the tech giant is planning to welcome more partners and support their chat experience needs.

3. Copilot for Microsoft Ads

Specifically designed for advertisers and agencies, Copilot is a new tool that leverages AI to generate recommendations for product images, headlines, and descriptions.

To use it, simply describe the content you need, like an image, and Copilot will generate suggestions based on your description.

Microsoft is currently testing the new tool on a handful of advertisers but plans to bring it to open beta in the next few months.


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Why we care. It’s important to keep up-to-date with new ad products and targeting tools to ensure you are delivering the best possible user experience and reaching high-value customers.

What has Microsoft said? Kya Sainsbury-Carter, VP Global Partner & Retail Media, Microsoft Advertising, said in a statement:

  • “With Copilot in the Microsoft Advertising Platform, Compare & Decide Ads, and new Chat Ads partners, we are making progress in this new era of generative AI.”
  • “Over the coming months we will share more functionality for Copilot in the Microsoft Advertising Platform and new Conversational Ad formats, as well as continuing to identify ways to democratize this incredible technology to transform the advertising industry.”
  • “Generative AI represents a massive opportunity for all. It creates new value with real purpose. It creates opportunities for advertisers, drives traffic for publishers, and delights consumers. The era of AI is here, and we’re just getting started.”

Deep dive. Read Microsoft’s Transforming Search and Advertising with Generative AI announcement in full for more information.

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