Why Microsoft Ads for E-commerce
Microsoft Ads (formerly Bing Ads) is the most underused paid channel in e-commerce. While everyone fights over Google Ads inventory, Microsoft offers access to 100+ million unique searchers with lower competition, lower costs, and higher purchasing power.
Who Uses Bing?
- Older demographic (35+) with higher household income and more purchasing power
- Windows default browser users (corporate environments, less tech-savvy consumers)
- Xbox and Microsoft ecosystem users (younger gaming demographic)
- DuckDuckGo and Yahoo searchers (included in the Microsoft Advertising network)
Account Setup (Step by Step)
- Create a Microsoft Advertising account at ads.microsoft.com. Sign in with your Microsoft account or create one. You do not need a separate business account.
- Set your time zone and currency. These cannot be changed after account creation, so choose carefully.
- Add payment method. Credit card, debit card, or PayPal. Microsoft also offers monthly invoicing for accounts spending $5,000+/month.
- Install the UET tag. The Universal Event Tracking tag is Microsoft's equivalent of the Google tag. Install it on every page of your site. This tracks conversions, audiences, and remarketing.
- Set up conversion goals. Define your conversion actions (purchase, add to cart, lead form) in the Conversion Goals section. Match these to the same events you track in Google Ads.
- Connect Microsoft Merchant Center. For Shopping campaigns, set up your Merchant Center store and submit your product feed. You can use the same feed format as Google Shopping.
- Link Google Analytics (optional). Microsoft Ads integrates with Google Analytics for cross-platform reporting. Add UTM parameters to your Microsoft Ads URLs.
UET Tag Tip
If you use Google Tag Manager, you can add the UET tag as a custom HTML tag firing on all pages. This is the fastest way to get tracking live without editing your site code. Also enable Enhanced Conversions (auto-tagging) in your Microsoft Ads account settings.
Import from Google Ads
The fastest way to launch Microsoft Ads is importing your existing Google Ads campaigns. Microsoft built this feature specifically for advertisers already running Google Ads.
- Go to Import > Import from Google Ads in your Microsoft Advertising dashboard.
- Sign in to your Google Ads account and select the campaigns you want to import.
- Review import options. Choose what to import: campaigns, ad groups, ads, keywords, negative keywords, extensions, and audiences.
- Adjust budgets. Set imported campaign budgets to 20 to 30% of your Google budgets. Microsoft has less volume, and you want to avoid overspending while you learn the platform.
- Review bid adjustments. Microsoft CPCs are typically 30 to 50% lower, so your Google bids may be too aggressive. Consider setting a bid adjustment of -30% during import.
- Check URL tracking. Ensure UTM parameters distinguish Microsoft Ads traffic from Google Ads in your analytics (e.g., utm_source=bing, utm_medium=cpc).
- Schedule recurring imports (optional). You can auto-sync changes from Google Ads on a daily or weekly basis. Useful for large accounts with frequent updates.
Do Not Import Blindly
Importing is a starting point, not a strategy. After import, review every campaign for: bid levels (usually too high), budget allocation (usually too high), keyword match types (Microsoft broad match is more aggressive than Google), and ad extensions (some may not transfer correctly). Spend 30 minutes reviewing before going live.
Shopping Campaign Setup
Microsoft Shopping campaigns work almost identically to Google Shopping. If you have a working Google Shopping setup, you are 80% of the way there.
| Setting | Recommended Configuration | Notes |
|---|---|---|
| Campaign priority | High for your best sellers, Medium for standard catalog, Low for catch-all | Same priority logic as Google Shopping |
| Product groups | Segment by brand, category, and product type | Do not run all products in one group. Segment for bid control. |
| Negative keywords | Import your Google Shopping negatives + add Microsoft-specific ones | Bing search behavior differs. Monitor search terms weekly. |
| Target ROAS | Start 20% higher than your Google target (e.g., 400% vs. 500%) | Microsoft has less data, so give the algorithm more room to learn. |
| Location targeting | Match your Google Shopping locations | Verify after import. Sometimes location targeting resets. |
| Device targeting | All devices, no adjustments initially | Optimize device bids after 30 days of data. |
Search Campaign Setup
For e-commerce search campaigns, focus on high-intent, product-specific keywords. Bing's search volume is lower, so you need to be more targeted.
- Start with exact and phrase match. Microsoft's broad match is more aggressive than Google's. Start narrow and expand as you build data.
- Branded campaigns first. Your brand terms will have the highest conversion rate and lowest CPC. Protect your brand from competitors bidding on your name.
- Product-specific ad groups. "Buy [product name]" and "[product name] price" keywords convert best. Group by product category.
- Use Responsive Search Ads (RSAs). Microsoft's RSA format mirrors Google's. Provide 10 to 15 headlines and 4 descriptions. Pin your most important headline to position 1.
- Add all extensions. Sitelinks, callout extensions, structured snippets, price extensions, and promotion extensions. They improve CTR and Ad Rank.
Audience Targeting (Microsoft's Secret Weapon)
Microsoft has one targeting capability no other ad platform can match: LinkedIn profile targeting. This is especially powerful for B2B e-commerce and high-AOV products.
| Audience Type | Best For | Setup |
|---|---|---|
| LinkedIn Company targeting | B2B e-commerce, enterprise products | Target employees of specific companies by name |
| LinkedIn Industry targeting | Vertical-specific products | Target by industry (e.g., Healthcare, Finance, Technology) |
| LinkedIn Job Function targeting | Decision-maker targeting | Target by function (e.g., Marketing, IT, Operations) |
| In-market audiences | Purchase-ready shoppers | Pre-built segments of users researching specific product categories |
| Custom audiences | Retargeting and lookalikes | Upload customer lists or build based on website behavior via UET |
| Remarketing lists | Cart abandoners, past visitors | Created automatically from UET tag data. Use for bid adjustments. |
LinkedIn Targeting Strategy
Layer LinkedIn targeting as bid-only observation audiences first. Do not restrict targeting to LinkedIn audiences initially. Instead, add them as observation and increase bids by 20 to 30% for your ideal customer profiles. After 30 days of data, evaluate whether to narrow targeting exclusively to these audiences.
Budget & Bidding Strategy
| Monthly Google Budget | Recommended Microsoft Budget | Campaign Split |
|---|---|---|
| $1,000 - $3,000 | $300 - $600 | 60% Shopping, 30% Brand Search, 10% Non-brand Search |
| $3,000 - $10,000 | $600 - $2,000 | 50% Shopping, 25% Brand Search, 15% Non-brand Search, 10% Audience Network |
| $10,000 - $30,000 | $2,000 - $6,000 | 45% Shopping, 20% Brand Search, 20% Non-brand Search, 15% Audience Network |
| $30,000+ | $6,000 - $12,000 | 40% Shopping, 15% Brand, 25% Non-brand, 20% Audience Network |
Start with Manual CPC or Enhanced CPC bidding for the first 30 days while Microsoft collects conversion data. Switch to Target ROAS or Target CPA automated bidding once you have 30+ conversions in a 30-day window.
Week-by-Week Optimization Playbook
| Week | Action | What to Look For |
|---|---|---|
| Week 1 | Monitor search terms, check tracking, verify feed | Ensure UET is firing, conversions are recording, product feed is approved |
| Week 2 | Add negative keywords, adjust bids by device | Identify irrelevant search terms. Check mobile vs. desktop performance. |
| Week 3 | Review product group performance, pause low performers | Which products get clicks but no sales? Pause or reduce bids. |
| Week 4 | First optimization pass. Adjust budgets based on ROAS. | Move budget from low-ROAS campaigns to high performers. |
| Month 2 | Test audience targeting, add new ad copy variations | Layer LinkedIn audiences, test RSA headlines, expand keyword coverage. |
| Month 3 | Evaluate automated bidding, scale winners | If 30+ conversions, test Target ROAS. Scale budget on campaigns above target. |
Common Microsoft Ads Mistakes
- Setting the same budget as Google. Microsoft has 10 to 20% of Google's search volume. Your budget should reflect this. Starting too high wastes money on lower-quality clicks.
- Using broad match without monitoring. Microsoft's broad match is more aggressive than Google's. A query for "blue running shoes" might match to "shoe repair" on Bing. Start with exact and phrase match.
- Ignoring the Microsoft Audience Network. MSAN is an underutilized channel that can deliver strong performance for retargeting and product discovery. Test it as a separate campaign.
- Not adjusting imported Google bids. Google CPCs are higher. If you import without bid adjustments, you will overpay on Microsoft. Reduce bids by 30 to 40% at import.
- Forgetting to update tracking UTMs. If your imported campaigns still say utm_source=google, your analytics will attribute Microsoft Ads conversions to Google. Always verify UTMs post-import.
- Treating Microsoft Ads as "set and forget." Just because it is smaller than Google does not mean it should get less attention. Weekly optimization (search terms, bids, negatives) is essential for the first 90 days.
The 30-Day Checkup
After 30 days, answer these three questions: 1) Is your ROAS above your minimum threshold? 2) Are you getting enough volume to justify the management time? 3) Is the audience different from Google (check demographics)? If yes to all three, scale up. If ROAS is good but volume is low, expand keywords and targeting. If ROAS is poor, audit search terms and landing pages first.
Methodology & Sources
- Microsoft Advertising, "Retail Industry Benchmarks," 2025
- Microsoft Advertising, "Microsoft Audience Network Overview," 2025
- Tinuiti, "Microsoft Ads Performance Benchmarks," 2025
- Merkle, "Digital Marketing Report: Microsoft Ads Data," Q4 2024
Frequently Asked Questions
Yes. Microsoft Ads typically has 30 to 50% lower CPCs than Google Ads with strong purchase intent from an older, higher-income demographic. Even with smaller volume, the ROI per dollar spent is often better than Google. Start with a small budget ($500 to $1,000/month) and scale based on results.
You can import, but do not just set and forget. After importing, adjust budgets (start at 20 to 30% of your Google budget), review keyword match types (Microsoft can be more liberal with broad match), and check that all tracking is correctly mapped. Imported campaigns are a starting point, not a finished product.
It is Microsoft's native advertising network that shows ads across MSN, Outlook, Edge, and partner sites. For e-commerce, it functions similarly to Google Display but with typically higher-quality placements and better click-through rates. It is worth testing as a separate campaign.
Microsoft offers unique targeting options: LinkedIn profile targeting (job title, company, industry), custom combination audiences, and in-market audiences specific to Microsoft's ecosystem. The LinkedIn targeting is especially valuable for B2B e-commerce and high-AOV products.
Start with 20 to 30% of your Google Ads budget. For most e-commerce brands, $500 to $2,000/month is enough to test. If performance is strong after 30 days, scale up. Microsoft Ads volume is smaller than Google, so you may not need a large budget to capture available demand.
You can use the same feed you use for Google Shopping, but you need to submit it through Microsoft Merchant Center (now integrated into the Microsoft Advertising platform). The feed format is nearly identical, and most feed management tools (DataFeedWatch, GoDataFeed, Feedonomics) support both platforms.
Expect 2 to 3 weeks for initial data collection and algorithmic learning. By week 4, you should have enough data to make optimization decisions. By month 2 to 3, campaigns should be hitting stable performance. Do not judge Microsoft Ads on the first week of data.
Absolutely. Microsoft Ads is one of the best places to find incremental revenue because the audience overlap with Google is only about 30%. Roughly 70% of Bing searchers are not using Google for that query, so you are reaching new customers, not the same ones twice.
