Microsoft New AI Predictive Targeting Tool

Clare Pemberton | 28th July 2023 | Paid Media

Amidst the ongoing buzz around Artificial Intelligence, Microsoft has recently announced the launch of its new AI-powered advertising tool – ‘Predictive Targeting’. 

Taking steps towards revolutionising targeted advertising, the latest tool aims to empower advertisers to deliver personalised material to receptive audiences with the goal  of driving higher conversion rates. 

How it works

Predictive targeting analyses signals from the data you provide, such as existing ads and landing pages, and combines it with Microsoft’s unique audience intelligence signals. The cutting-edge machine learning algorithms can process huge volumes of data from multiple sources, including user behaviour, demographics and historical patterns. 

Advertisers can use this information to gain valuable insights into their target audience’s preferences, interests and purchasing behaviours, whilst Microsoft will automatically present ads to individuals most likely to convert. 

Save time and drive efficiencies

The tool is designed to require little to no effort from advertisers and can be simply switched on/off via a toggle in the ad group settings. This eliminates the need for researching market demographics and creating extensive targeting strategies from scratch. 

Instead, the tool can analyse consumer data in real-time, which can be leveraged to create highly personalised and tailored campaigns. By trusting the AI to do  the hard work, Microsoft asserts that you can expect to see conversion rates climb by 46% on average.

Best practices

Some tips to consider if you’re looking to make use of Predictive Targeting include:

  • Use clear, descriptive and persuasive ad copy that resonates with your target audience. 
  • Ensure your landing pages provide a smooth customer experience and are fully optimised.
  • Combine Predictive Targeting with automated bidding strategies to drive the best results.
  • Monitor performance and make relevant adjustments to bids, landing pages and ad copy.

Worth the risk?

With AI functions being relatively new, it is always important to be wary of any potential downsides before putting full faith into these solutions. By choosing to use the new tool, advertisers will forfeit some control over who views their ads, which comes with the risk of unwanted audiences being reached. In its early stages, it is best to keep a close eye to prevent any wasted ad spend.

Microsoft assures that the Predictive Targeting tool adheres to  strict privacy regulations, stating that data is anonymised and aggregated to meet the requirements.

The future of predictive targeting

Much like other evolving AI platforms, we don’t expect Microsoft to stop here. The Predictive Targeting tool has huge potential for growth in its ability to reshape the advertising landscape. Likely developments we can expect include:

  • Increased personalisation as the AI refines its understanding of user’s unique preferences, fostering stronger connections between brands and individuals and driving engagement.
  • Incorporations of contextual factors based on real-time events relevant to consumers, creating seamless and immersive ads. 
  • Extension across multiple advertising platforms and channels, such as social media and video streaming, building a more holistic approach.

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