If you’re new to Microsoft Advertising, selecting the right campaign type is your first significant step toward success. Microsoft Ads offers several campaign formats, each designed for different marketing goals, audiences, and products.
This guide breaks down the four most important Microsoft Ads campaign types, with clear examples and tips to help you get started.
1. Search Ads: Capture High-Intent Customers
What are Search Ads?
Search Ads are text-based ads that appear on Bing, Yahoo, AOL, and Microsoft partner sites when someone searches for keywords you’ve selected.
Best for:
- Driving website traffic
- Reaching customers actively searching for your product or service
- Promoting time-sensitive offers or lead magnets
How it works:
You bid on keywords and write compelling ad copy. Your ads show up when users search for those terms.
Example:
When someone searches for ‘best running shoes for women,’ your ad appears at the top ready to capture their attention.
2. Shopping Ads: Showcase Your Products Visually
What are Shopping Ads?
Shopping Ads display product images, prices, and your store name directly in search results, powered by your Microsoft Merchant Center product feed.
Best for:
- E-commerce stores like Shopify and WooCommerce, or platforms like Magento.
- Promoting multiple products/SKUs
- Increasing click-through rates with visual appeal
How it works:
Connect your online store to Microsoft Merchant Center, sync your product feed, and launch Shopping campaigns to reach shoppers as they search.
Pro Tip:
Combine Shopping Ads with Performance Max (if available) for automated placements across Microsoft’s channels.
3. Dynamic Search Ads: Automate Keyword Targeting
What are Dynamic Search Ads (DSA)?
DSAs automatically generate ads and select landing pages based on your website’s content, filling in keyword gaps you might miss.
Best for:
- Large websites or stores with many products
- Saving time on keyword research
- Covering new or long-tail search queries
How it works:
Microsoft scans your website, matches user searches to your content, and dynamically creates relevant ads.
Note:
DSAs work best when your website is well-structured and SEO-optimized.
4. Audience Ads: Expand Beyond Search
What are Audience Ads?
Audience Ads are native, image-rich ads shown across Microsoft’s Audience Network including MSN, Outlook, and Microsoft Edge. They reach users while they browse news, check email, or use LinkedIn.
Best for:
- Brand awareness and retargeting
- Reaching users outside of search results
- Promoting content, offers, or events
How it works:
Set up targeting based on demographics, interests, or remarketing lists. Your ads appear natively alongside content users are already consuming.
Bonus:
Leverage LinkedIn profile targeting for advanced B2B campaigns.
5. Performance Max Campaigns: AI-Driven, Cross-Channel Reach
What are Performance Max Campaigns?
Performance Max (PMax) campaigns use Microsoft’s AI to automate ad placements across the entire Microsoft ecosystem including Bing Search, the Audience Network (MSN, Outlook, LinkedIn, Xbox), Microsoft Edge, and even Windows 11 apps and widgets.
Best for:
- Advertisers seeking maximum reach with minimal manual setup
- Brands wanting to leverage AI for creative, targeting, and budget optimization
How it works:
You provide creative assets, audience signals, and UET tracking for your conversion goals. Microsoft’s AI tests combinations and allocates budget dynamically to maximize conversions.
2025 Updates:
- Search Themes: Guide AI with specific intent themes
- Expanded LinkedIn Targeting: More granular B2B targeting
- Automated Creative Optimization: AI tests and selects the best-performing ad combinations
Pro Tip:
Use high-quality images and videos to help AI optimize your campaign performance.
Not sure how to launch your first PMAX campaign? Performance Max guide walks you through it.
6. Video & Connected TV (CTV) Ads: Engage Audiences with Rich Media
What are Video & CTV Ads?
These ads let you run video creatives across Microsoft’s streaming partners, MSN, Outlook, and Xbox.
Best for:
- Brand storytelling
- High-engagement campaigns
- Reaching cord-cutters and streaming audiences
How it works:
Upload your video assets (now up to 75 seconds), set your audience and budget, and your ads appear across premium video placements.
2025 Updates:
- CTV ads now support advanced LinkedIn-based targeting for B2B brands
- AI-powered tools can repurpose your existing creative assets into video ads
Example:
A B2B software company runs a 45-second video ad targeting IT managers on streaming platforms using LinkedIn data.
7. App Install Campaigns: Promote Your App Across Devices
What are App Install Campaigns?
App campaigns promote your mobile or desktop app across Bing, Microsoft Store, Windows Start Menu, and Microsoft’s gaming properties (like Candy Crush).
Best for:
- Driving app downloads on Android, iOS, and Windows
- Reaching users on desktop and mobile devices
How it works:
Set up your campaign, provide your app store link, and Microsoft display your ad in high-traffic placements, including games and the Windows Start Menu.
2025 Updates:
- Expanded placements in Windows Start Menu and Microsoft Store
- Gaming network integration for broader reach
8. Showroom Ads: Immersive, Interactive Shopping Experiences
What are Showroom Ads?
Showroom Ads create a digital, interactive product experience, allowing users to explore products much like a physical showroom.
Best for:
- High-consideration products (e.g., electronics, cars, appliances)
- Brands wanting to educate and engage users before purchase
How it works:
When users express purchase intent (e.g., via Copilot), they’re invited into a Showroom Ad experience, where they can interact with rich content, ask questions, and even chat with a virtual brand agent.
2025 Updates:
- Integration with Copilot for conversational shopping
- Brand agents provide real-time expertise and support
9. Vertical Ads: Industry-Specific, AI-Generated Formats
What are Vertical Ads?
Vertical Ads are tailored to specific industries (like automotive, travel, and finance) and generated by Microsoft AI to improve relevance and performance.
Best for:
- Businesses in industries with unique ad needs
- Advertisers wanting easy setup and industry-optimized creative
How it works:
No keywords required—Microsoft AI creates and places ads based on your vertical and business goals.
10. Native Ads with Video Assets
What’s new?
Native Ads on Microsoft’s Audience Network now support video assets, allowing you to combine the power of native placements with engaging video content.
Best for:
- Blending in with editorial content
- Driving higher engagement with video
Quick Comparison of Microsoft Ads Campaign Types
| Campaign Type | Best For | Key Features / 2025 Innovations |
|---|---|---|
| Search Ads | High-intent queries | Keyword targeting, text ads |
| Shopping Ads | E-commerce product sales | Product feed, images, dynamic pricing |
| Audience Ads | Brand awareness, retargeting | Native, video support, LinkedIn targeting |
| Dynamic Search Ads | Large sites, automation | AI-driven ad generation, dynamic filters |
| Performance Max | Cross-channel automation | AI optimization, search themes, LinkedIn |
| Video/CTV Ads | Engagement, storytelling | CTV placements, longer video, B2B targeting |
| App Install Ads | Driving app downloads | Windows Start Menu, gaming, app stores |
| Showroom Ads | High-consideration products | Immersive, interactive, Copilot-enabled |
| Vertical Ads | Industry-specific needs | AI-generated, easy setup |
| Native Video Ads | Editorial/native environments | Video assets in native placements |
How to Choose the Right Campaign Type
-
Want to reach active searchers? → Use Search Ads
-
Selling products online? → Go with Shopping Ads
-
Want automation? → Try DSAs
-
Need broad reach or retargeting? → Leverage Audience Ads
Pro Strategy:
Combine multiple campaign types for a full-funnel approach: capture demand with Search/Shopping, nurture with Audience Ads, and automate with DSAs.
Final Thoughts
Choosing the right Microsoft Ads campaign type is foundational for your advertising success. Start with the format that matches your goals, test continuously, and expand as you learn what works for your business. By staying up-to-date with the latest features and innovations, you’ll maximize your results and stay ahead of the competition.
Frequently Asked Questions
Q. What is the most effective Microsoft Ads campaign type for beginners?
Search Ads are typically the best starting point. They target users with high intent and are easy to set up and manage, making them ideal for first-time advertisers.
Q. Can I run multiple Microsoft Ads campaign types at once?
Yes. Combining campaign types like Search, Shopping, and Audience Ads often leads to stronger results through a full-funnel strategy.
Q. Do Dynamic Search Ads replace keyword research?
Not entirely. Dynamic Search Ads complement keyword research by covering gaps and long-tail queries, but manual keyword planning is still important for control and precision.
Q. What is the difference between Search Ads and Audience Ads in Microsoft Advertising?
Search Ads are triggered by keywords and reach users actively searching. Audience Ads are shown across websites and apps based on user behavior, demographics, or LinkedIn profile data.
Q. Can I use Performance Max with a limited budget?
Yes. Performance Max is flexible and uses Microsoft’s AI to allocate your budget across channels efficiently, even with smaller ad spends.
Q. Do Shopping Ads require a Microsoft Merchant Center account?
Yes. You need to connect your online store and upload your product feed to Microsoft Merchant Center before launching Shopping campaigns.
Q. Which Microsoft Ads campaign type is best for brand awareness?
Audience Ads, Video or CTV Ads, and Showroom Ads are all excellent for building brand awareness due to their visual formats and wider reach beyond search engines.
Q. How does LinkedIn targeting work in Microsoft Ads?
Microsoft Ads allows targeting by job title, industry, company name, or seniority using LinkedIn profile data. This targeting is available in Audience Ads, Performance Max, and Video or CTV campaigns.