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New AI-Driven Microsoft Ad Features Launched by Microsoft Copilot

Team DG
Written By
Team DG
March 7, 2025
6 minutes read
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By 5 march 2024 – during an advertising event, Microsoft announced their special AI-powered ads for its generative AI chatbot, Copilot. The company wants to create different types of ads and tools to attract more advertisers to its platform.

Newly Launched Features of Copilot Microsoft

The 1st new feature is Showroom Ads. Here users will see two screens: one side will show the brand and let people ask questions, while the other side will let Copilot answer these questions in real time.

Copilot will also have an “ad voice.” This feature will explain why certain ads show up when users ask questions. Additionally, branded AI agents will allow companies to communicate directly within Copilot’s answers.

Paul Longo, the general manager of AI for Microsoft ads, said in a chat with Adweek that the Copilot ads experience is very important for the future growth of their business.

What Was the Need?

Microsoft wants to earn more money from ads in the copilot Microsoft chatbot area because it is competing with other companies like Amazon’s Rufus and Perplexity. Google is currently the biggest player in this field, but Microsoft has had some good results in its efforts.

What the Number Says About Microsoft Ads?

Microsoft’s search and news ad revenues rose 21% last quarter, though it still lagged behind Meta and Google.

According to Microsoft, Copilot outperformed traditional search ad relevance by 25% and doubled click-through rates last year.

What to Expect with AI-Powered Microsoft Advertising?

Showroom Ads

➔ Immersive digital experience representing actual showrooms.
➔ It also allows users to explore products and ask questions.
➔ Rich sponsored content complements organic experience.
➔ Future plans include integration of brand agents for direct engagement.

Dynamic Filters:

➔ Helps users refine searches without additional typing.
➔ Narrows down options based on individual preferences.
➔ Pilot launching in English language markets in March.

Our Analysis:

AI Smart Ads technology might help Copilot grow, especially since it has had difficulty impressing business customers. For marketers, Copilot Microsoft ads login could be a new chance to talk to their audience in a friendly way. This could improve how they connect with customers and might lead to more sales. Copilot Microsoft ads are now fully implemented in the English, French, German, Spanish, Italian, Portuguese, Traditional Chinese, Simplified Chinese, Japanese, Dutch, Filipino, Korean, Russian, Thai, and Turkish.

Copilot Microsoft AI chatbots need a different way to show ads. Instead of using the same ads for everyone, advertisers should make sure the ads are relevant and fit each user’s needs. This new method can help advertisers use advanced AI tools to improve their ads.

What to Expect Next?

Microsoft integration with AI tools like Copilot, Microsoft will allow advertising companies to create more sophisticated, reliable AI-powered solutions for their clients and businesses. With Microsoft’s enhanced data management features, Copilot Microsoft advertising can be more seamlessly applied to real-time operational data.