Unlocking a vibrant, mobile-first audience and more with generative AI

​This month marks one year since our entry into AI-powered experiences for people with Bing Chat. Now with Copilot as our singular experience, it has been exciting to bring this innovation to the advertising ecosystem with a goal of unlocking value for consumers, advertisers, and publishers. We continue to make progress on our vision to transform advertising with our generative AI capabilities.

A key example of this transformation is the value we’re delivering through our Chat Ads API. We created this unique technology to help accelerate our goal of making this revolutionary technology more widely available and accessible across the industry. This solution lets publishers, apps, and online services customize their large language model (LLM) experiences with ads. As we continue to expand this technology and work with new partners, early insights are already providing enhanced opportunities for our advertisers by reaching these new and increasingly valuable audiences.

Powering Sponsored Links within Snapchat’s My AI brings mobile growth

As our first partner to use our Chat Ads API, Snap has created new value for Microsoft Advertising clients by integrating ads into their consumer chatbot, My AI. This chatbot is one of the largest consumer chatbots today and drives significant global traffic from mobile devices. This additional inventory along with Microsoft Advertising’s owned and operated (O&O) gives advertisers more opportunities to reach audiences throughout the day. This increases the probability of conversion and results in a greater return on investment (ROI).

We’ve seen significant growth in mobile click volume and conversion rates across various verticals: ¹

• In the Travel vertical, we’ve seen mobile click growth in the double digits year over year (YoY).
• In the Tech/Telco vertical, Snapchat Ads provided a median daily incremental mobile click volume of 7.8% and a median daily incremental mobile conversion volume of 12.5%.
• In the FinServ vertical, Snapchat Ads provided a median daily incremental mobile click volume of 3.9% and a median daily incremental mobile conversion volume of 10.1%.

New partnership with Facemoji Keyboard brings a vibrant audience

We’re excited to announce our latest partnership with Facemoji Keyboard, a keyboard for content creation with rich in-app resources. As a fellow leader in generative AI, we saw this as a great chance to combine our strengths and improve the user experience while attracting a new and vibrant audience for our advertisers. The innovative features of Facemoji are appealing to users everywhere. Half of the new users are drawn to Facemoji’s smart AI features, using them often to refine their messages, make custom stickers, and turn simple text into fun meme images. With the Chat Ads API, Microsoft Advertising is now delivering ads within their new Ask AI function.

Let’s look at the value of this new audience within the Microsoft Advertising Network:

• 28% of Facemoji’s new users are interacting with Ask AI as they explore new and trendy ways to express themselves.
• Ads are available in four markets: US, United Kingdom, Canada, and Australia. With 550 million global downloads of the growing mobile-first Facemoji Keyboard, having coverage in these top markets is valuable.
• 70% of users are under the age of 40. With 40% of the audience being 18-24, this new inventory is enabling us to tap into this engaged Gen Z audience.
• The users are very diverse, and they show strong preferences that can benefit brands. The top trending user affinities that we see are as follows:
  • Media and entertainment
  • Technology
  • Food and dining
  • Lifestyle and hobbies
  • Sports and fitness
  • Vehicles and transportation
  • Home and garden
  • Shoppers
  • Beauty and wellness
  • News and politics

Enhance your Microsoft Advertising campaigns to unlock these new audiences

To make the most of these newly available audiences and partner traffic in your Microsoft Advertising campaigns, we suggest following these four essential steps:

1. Boost your mobile traffic quality with device targeting
   Leverage Microsoft’s growing mobile network with device targeting. Consider increasing mobile bid modifiers across your ad groups. Device bid modifiers are used as a signal for automated bidding to help deliver high quality traffic.
   
   
2. Include partners by targeting the entire Microsoft Advertising Network
   Make sure all your ad groups have Search Partners included by having “The entire Microsoft Advertising Network” setting selected.
   
   
3. Optimize daily budgets for maximum mobile exposure
   Ensure campaign daily budgets are set up to capture increased mobile traffic throughout the day. This will enable you to access the growing mobile volume; especially during the peak hours for this audience between 3:00 PM and 9:00 PM.
   
   
4. Expand your mobile presence in international markets
   Mobile growth continues to expand in non-US markets. Ensure you’re fully tapping into mobile opportunities to reach unique audiences across the globe.

Help us improve Microsoft Advertising

Your comments and feedback are integral to shape and improve our product. You can use the Microsoft Advertising Feedback portal, in-product feedback, Twitter, or Instagram, and as always, contact Support.