Understanding Microsoft Advertising cost is essential for any business looking to maximize their paid search investment. With average CPCs 30-40% lower than Google Ads, Microsoft Ads (formerly Bing Ads) offers a compelling alternative for cost-conscious advertisers seeking quality traffic.
In this comprehensive guide, we break down exactly what you can expect to pay for Bing Ads in 2026, including CPC and CPM benchmarks, industry-specific rates, and how to set a realistic budget for your campaigns.
Microsoft Advertising operates on a pay-per-click (PPC) model, meaning you only pay when someone clicks on your ad. Here's what advertisers typically spend on the platform in 2026:
| Cost Metric | Average Range |
|---|---|
| Average CPC | $1.00 - $2.80 |
| Most Common CPC | $1.54 |
| Average CPM | $6 - $9 |
| Shopping Ads CPC | $0.33 - $1.54 |
| Audience Ads CPC | $1.50 - $2.80 |
The platform's average CPC of $1.54 is significantly lower than Google Ads' average of $2.69. This price difference allows Bing advertisers to stretch their budgets further and gain more visibility than they would on Google.
Minimum budget to get started: According to industry sources, you can effectively test Microsoft Ads with as little as $1,000/month, making it accessible for small businesses.
Understanding the key metrics helps you evaluate whether Microsoft Advertising delivers value for your business.
Microsoft Advertising's CPC varies significantly by ad type:
| Ad Format | CPC Range | Best For |
|---|---|---|
| Search Ads | $1.50 - $2.80 | Lead generation, services |
| Shopping Ads | $0.33 - $1.54 | E-commerce, retail |
| Audience Ads | $1.50 - $2.80 | Brand awareness, remarketing |
CPM rates on Microsoft Advertising remain competitive:
According to industry data:
These benchmarks provide a solid baseline, but your actual costs will vary based on your industry, targeting, and campaign optimization.
One of the biggest advantages of Microsoft Advertising is its cost efficiency compared to Google Ads. Here's how the two platforms compare:
| Metric | Microsoft Ads | Google Ads | Difference |
|---|---|---|---|
| Average CPC | $1.54 | $2.69 | 43% lower |
| CTR | 45% higher | Baseline | Microsoft wins |
| CPC Savings | 30-70% lower | Baseline | Significant savings |
| Average ROAS | $4-$10 per $1 spent | $2-$8 per $1 spent | Higher returns |
According to Invoca research, the average cost-per-click on Microsoft Advertising can be up to 70% lower than Google Ads. Industry-specific savings are even more dramatic:
The lower costs stem from reduced competition. While Google dominates with 92% of global search market share, Microsoft's network captures around 7% globally—but that still represents over 1 billion monthly users. Fewer advertisers bidding on the same keywords naturally leads to lower costs.
Several variables influence how much you'll pay for Microsoft Advertising:
High-value industries command higher CPCs:
Your keyword strategy directly impacts costs:
Microsoft Ads uses a quality score system that affects your actual CPC:
More refined targeting can increase CPCs but improve ROI:
Costs fluctuate throughout the year:
Microsoft Advertising costs vary significantly by industry. Here's what to expect based on 2026 benchmark data:
| Industry | Typical CPC Range | CTR | Conversion Rate |
|---|---|---|---|
| Arts & Entertainment | $1.50 - $2.00 | 13.04% | High |
| Real Estate | $1.80 - $3.00 | 9.20% | Moderate |
| Sports & Recreation | $1.75 - $2.50 | 9.19% | High |
| Attorneys & Legal | $6.00 - $10.00+ | 5.30% | 5.37% |
| Dental & Healthcare | $5.00 - $9.00 | 5.44% | 9.08% |
| Home Services | $5.00 - $9.00 | 5.56% | 12.96% |
| B2B Services | $0.80 - $2.00 | Moderate | 2.94% |
| E-commerce/Retail | $0.50 - $2.00 | High | Variable |
Key insight: Industries like legal and healthcare pay premium CPCs, but Microsoft Ads still offers substantial savings compared to Google in these competitive verticals.
Setting the right budget requires balancing your goals with realistic cost expectations.
Determine what you want to achieve:
Use this formula to estimate your monthly budget:
Monthly Budget = (Target Conversions × Estimated CPA)
Example calculation:
We recommend this phased approach:
| Phase | Monthly Budget | Duration | Objective |
|---|---|---|---|
| Testing | $1,000 - $2,000 | 1-2 months | Validate performance |
| Optimization | $2,000 - $5,000 | 2-3 months | Refine targeting |
| Scaling | $5,000+ | Ongoing | Maximize ROI |
A balanced budget distribution might look like:
If you're considering hiring a PPC agency to manage your Microsoft Advertising campaigns, here's what typical pricing looks like in 2026:
According to industry surveys, agencies use several pricing structures:
| Pricing Model | Typical Range | Best For |
|---|---|---|
| Flat Fee | $650 - $5,000/month | Predictable costs, mid-size budgets |
| % of Ad Spend | 10-20% of spend | Larger budgets, aligned incentives |
| Tiered Fees | Varies by spend bracket | Growing accounts |
| Hourly Rate | $75 - $200/hour | Consulting, specific projects |
Based on WebFX research and industry data:
| Monthly Ad Spend | Typical Agency Fee |
|---|---|
| $100 - $5,000 | $650 - $1,200/month |
| $5,000 - $30,000 | $975 or 15% of spend |
| $30,000+ | $4,500 or 12% of spend |
Setup fees: Expect one-time costs of $1,200 - $5,800 for initial campaign setup, audits, and creative development.
Most PPC management fees cover:
Maximize your Microsoft Advertising investment with these proven strategies:
Microsoft makes it easy to import existing Google Ads campaigns, saving setup time and allowing you to leverage proven performers.
Microsoft's exclusive LinkedIn profile targeting lets B2B advertisers reach users by:
This precision targeting often improves conversion rates and reduces wasted spend.
Improving your quality score directly lowers CPCs:
Prevent irrelevant clicks by maintaining a robust negative keyword list. Review search query reports weekly to identify wasted spend.
Analyze when your audience converts and adjust bid modifiers to focus budget on high-performing hours.
Microsoft's automated bidding strategies can help optimize for:
The average CPC on Microsoft Advertising is $1.54, though this varies by industry. CPCs typically range from $1.00 to $2.80 for most advertisers. Competitive industries like legal and healthcare may see CPCs of $6-$10+.
Yes, Microsoft Advertising is 30-70% cheaper than Google Ads on average. The lower competition on the Microsoft Search Network results in lower CPCs while still delivering quality traffic.
You can start testing Microsoft Ads with as little as $1,000/month. However, we recommend $2,000-$3,000/month for meaningful data collection and optimization.
Agency fees typically range from $650 to $5,000/month depending on your ad spend and service level. Many agencies charge 10-15% of ad spend or offer flat monthly fees.
Ready to optimize your Microsoft Advertising costs? Contact us for a custom budget recommendation or schedule a free consultation with our certified Microsoft Ads specialists.
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