Microsoft extends its partnership with OpenAI until 2032, holding a $135 billion stake (27%). The deal keeps Microsoft as OpenAI's exclusive IP and Azure API partner until AGI, with AGI verified by an expert panel. Microsoft’s IP rights last through 2032, excluding consumer hardware. OpenAI can partner with others and provide API access to US national security customers. OpenAI commits to $250B in Azure services, and Microsoft can pursue AGI independently.
Microsoft Advertising will require customers to declare if their campaigns are political before creation or import starting September, in line with EU Regulation 2024/900 effective October 10, 2025. Political ads are not allowed and will be blocked. Existing campaigns remain unaffected. Non-compliance may lead to suspension. Regular reviews will ensure no political ads run, reinforcing compliance with EU rules.
Microsoft Advertising will retire Target CPA and Target ROAS bidding strategies by August 4, 2025, merging them with Max Conversions and Max Conversion Value. New campaigns can't use Target CPA or ROAS after this date. Existing campaigns and portfolio strategies remain unaffected. Updates to Target CPA or ROAS auto-convert to Maximize conversions or Maximize conversion value. Users can set target ROAS or CPA within these merged strategies.
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Microsoft has introduced Report Builder in Microsoft Advertising, allowing advertisers to create customized reports for performance analysis. This tool provides flexibility without predefined templates, catering to all experience levels. It helps uncover insights, compare campaign performance, and optimize strategies. Advertisers can generate detailed reports and investigate performance issues, enhancing control and efficiency in the reporting process.
Microsoft Ads has announced an update to its Google Merchant Center (GMC) import process to streamline workflows for merchants. Key features include Feed Label Support, which imports products with specific labels from GMC, and Automated Feed Management, consolidating all products into a single feed with automatic updates. Transition support is available. These changes aim to simplify cross-platform product advertising and improve efficiency.
Microsoft's AI, Copilot, is expediting purchase decisions and increasing ad click-through rates. Microsoft and Axel Springer are partnering to leverage AI, with Springer integrating Microsoft Advertising and piloting AI chat experiences. Copilot is now generally available in the Microsoft Advertising Platform, transforming search habits and increasing click-through rates when used with traditional Search.
Microsoft Retail Media is helping retailers and advertisers comply with the IAB/MRC Retail Media Measurement Guidelines. These standards focus on data transparency, accuracy, privacy, and security in the retail media industry. Microsoft supports these guidelines, providing compliant solutions. The guidelines are expected to benefit stakeholders by providing a performance evaluation framework, optimizing ad spending, and promoting a safer shopping environment.
Microsoft Advertising is updating bidding options for native ads. From April 30, manual CPC bidding won't be available for new campaigns. On May 13, existing campaigns on manual CPC will upgrade to enhanced CPC, completed by May 17. Enhanced CPC adjusts bids in real time to increase conversion chances, lowering cost per acquisition by an average of 6%. The change only affects native image and feed campaigns on manual CPC.
Microsoft Advertising has expanded the Maximize Conversion Value bid strategy to all search and shopping campaigns, optimizing high-value conversions and sales. Conversion tracking is necessary for best performance. Microsoft Click ID is being enabled for eligible advertisers for conversion tracking. Other updates include AI-powered smart image cropping for ads and the addition of five languages. Creation of subaccounts in Hotel Center will be deprecated from April 8, 2024.
