Microsoft Introduces Category-Based Targeting For Search Ads

Microsoft has unveiled a new approach to search advertising aimed at helping companies more effectively reach their target audience in the retail media space.

This innovative category-based targeting solution aims to address the limitations of traditional keyword targeting while harnessing the power of keywords to improve campaign performance.

Skip keyword targeting

Although keyword targeting has been a cornerstone of search advertising for years, it does have limitations.

By focusing solely on keyword targeting, advertisers may miss out on valuable opportunities to promote their products, which can negatively affect campaign performance and limit revenue potential.

Retailers and advertisers are beginning to realize that shoppers are browsing the digital aisles on retailers’ websites rather than just searching for specific products using keywords.

As a result, strategies that limit themselves to targeting keywords do not adequately address their needs.

Unleash the power of category-based targeting

Microsoft’s new solution targets shoppers based on their browsing categoriesUsing keywords to boost campaign bids.

This approach allows advertisers to take advantage of both audience behaviors, resulting in stronger performance.

By boosting bids with keywords, advertisers can increase their chances of converting purchase intent into sales.

Retailers can improve the site experience for shoppers by categorizing products, making it easier for customers to find what they want.

Microsoft PromoteIQ’s AI algorithms can then serve more relevant ads by placing keywords as a booster in addition to categories.

This new approach simplifies campaign management for advertisers, as they only need to test and retain a few high-performing keywords.

For retailers, this efficiency translates to increased demand.

Proven Results: Higher CTR and RPM

Tests have shown that this unique solution delivers impressive results.

Campaigns using category targeting and boosting keyword bids achieve a 320% higher click-through rate (CTR) than campaigns without keyword bid boosting.

Retailers also benefit from this approach, generating 8 times more revenue per thousand impressions (RPM).

The future of search advertising?

Microsoft PromoteIQ’s new category-based targeting solution is a significant shift in search advertising.

By addressing the limitations of traditional keyword targeting and maximizing the value of each audience behaviour, this innovative approach can improve performance for advertisers and retailers alike.

As the advertising landscape continues to evolve, adopting solutions like this is critical to staying ahead and delivering an exceptional shopping experience to customers.

Featured image: sockagphoto / Shutterstock

source: Microsoft

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