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Turning AI into ROI: How advertisers win with AI in 2025

March 27, 2025
Three friends smile and embrace while taking a selfie outdoors on a sunny day, with green trees and grass in the background.

Advertising is an incredibly competitive space that’s changing fast. Keeping up with consumer expectations demands more from marketing teams than ever before: faster campaign turnarounds, hyper-personalization of messaging and visuals, and measurable ROI. And, in reality, many advertisers are trying to drive these results with tight budgets and lean teams.

Enter generative AI (GAI). GAI is transforming how advertisers of all sizes, stay competitive and find new ways to grow. It's like having your own AI digital marketing assistant at your fingertips to amplify your work, providing creative, strategic, and operational muscle to help brands compete effectively at every budget level.

Here’s what you need to know about how GAI can help you reach your most important goals.

AI’s next chapter: From optimization to creative advantage

AI has powered elements of advertising like targeting and automated bidding for years, which is reshaping the creative process itself and taking optimization to the next level. GAI is quickly becoming involved in what ads say, how they look, and who sees them in real-time.

  • GAI tools can help you quickly create eye-catching digital ads, including headlines, images, videos, and ad copy.
  • With tools like Copilot in Microsoft Advertising Platform and Ads Studio, it’s easier to iterate versions and deliver hyper-personalized messages that resonate with your audience.
  • It’s also possible now to more easily identify high-value audiences through AI-powered signals that go beyond traditional targeting.
  • Ad products like Performance Max advertisers optimize performance like never before.

Why GAI is essential for advertisers in 2025

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The image shows a quote attributed to Kenneth Andrew, General Manager of Microsoft Advertising. The quote reads: "AI isn't just about efficiency. It's the edge brands need to outperform their competition."

It’s also important to highlight that many advertisers are navigating complex pressures: rising customer expectations, tighter budgets, and fragmented customer journeys. Many digital consumers now expect their experiences to be personalized as a baseline.

Delivering these interactions at scale is easier, faster, and more cost-effective with GAI.

Brands that have embraced GAI are already seeing significant results.

How to turn AI into real ROI

In 2025, GAI-powered advertising is no longer a differentiator — it’s the standard. Advertisers that have fused AI into their creative and campaign processes are leading the way with faster execution, higher-performing campaigns, and deeper audience engagement.

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The image is a promotional graphic from Microsoft Advertising, highlighting the impact of Copilot on PMax user engagement.

  • AI-powered ads like Performance Max and Ads in Microsoft Copilot, as well as tools like Ads Studio and Copilot in Microsoft Advertising Platform, are what high-performing marketing teams are using to get there.
  • These ad products and tools help brands of all sizes create and manage advertising to reach new audiences.
  • GAI is behind many of advertising’s newest and most powerful tools, but only advertisers who understand how they work can get the most out of them.

If you’re focused on driving better advertising results with GAI this year, join us for an expert-led webinar to explore how brands are using AI tools to unlock performance, improve creative, and grow revenue.

Register Today and learn how to apply Microsoft Advertising’s GAI solutions to your campaigns and how to build a smarter, AI-driven approach to advertising.

If you are new to Microsoft Advertising, take advantage of a free consultation with our team of experts to help you set up an account, or get started for free today.

Authors

  • Kenneth Andrew

    VICE PRESIDENT, GLOBAL SMB AND GROWTH, MICROSOFT ADVERTISING

    Kenneth Andrew