Microsoft Advertising for Beginners: Complete Setup Guide

Microsoft Advertising (formerly Bing Ads) offers an alternative to Google Ads that many advertisers overlook. With access to millions of searchers across Bing, Yahoo, AOL, and DuckDuckGo—plus unique audience targeting capabilities—Microsoft Ads deserves a place in your marketing mix.

This guide walks you through everything you need to know to set up and launch your first Microsoft Advertising campaign.

What is Microsoft Advertising?

Microsoft Advertising is Microsoft's paid search platform. When someone searches on Bing, Yahoo, AOL, or partner search engines, your ads can appear alongside the results.

Like Google Ads, it operates on a pay-per-click (PPC) model—you bid on keywords and pay when someone clicks your ad. The core mechanics are similar, making Microsoft Ads approachable if you've used other search advertising platforms.

Why Microsoft Advertising Matters

Reach unique audiences. Microsoft powers search for Bing (the default on Windows devices), Yahoo, AOL, and DuckDuckGo. Many of these users never see Google Ads.

Lower competition often means lower costs. Because most advertisers focus primarily on Google, Microsoft Ads typically has less competition and lower cost-per-click for equivalent keywords.

Different demographics. The Microsoft Audience Network skews toward older users with higher household incomes—valuable for certain products and services.

LinkedIn integration. Microsoft owns LinkedIn, and this integration enables professional targeting unavailable on any other search platform.

Platform Overview

Before creating campaigns, understand how Microsoft Advertising is organized and what features are available.

Account Structure

Microsoft Advertising follows a hierarchy similar to Google Ads:

Account: Your top-level container. One account can manage multiple campaigns and includes billing information, user access settings, and account-wide preferences.

Campaigns: Individual advertising initiatives with their own budgets, targeting settings, and goals. You might have separate campaigns for different products, geographic regions, or marketing objectives.

Ad Groups: Collections of related keywords and ads within a campaign. Ad groups let you organize by theme—all ads and keywords in a group should relate to a single topic.

Keywords and Ads: The building blocks. Keywords determine when your ads appear; ads are the actual content searchers see.

Ad Formats

Microsoft offers several ad formats:

Search Ads: Text ads appearing on search results pages. Responsive search ads let you provide multiple headlines and descriptions that the system combines automatically.

Shopping Ads: Product listings with images, prices, and merchant information. Essential for e-commerce advertisers.

Audience Ads: Display and native ads appearing across the Microsoft Audience Network—sites like MSN, Outlook, and partner properties.

Performance Max: Automated campaigns that use AI to optimize across multiple formats and placements. Microsoft expanded this in early 2026 to allow 50 search themes per campaign.

Unique Features

LinkedIn Profile Targeting: Layer professional attributes onto your search campaigns—target by job function, industry, company size, or seniority. This is exclusive to Microsoft Advertising.

Import from Google Ads: Already running Google campaigns? Import them directly into Microsoft Ads. Campaign structures, keywords, ads, and settings transfer in minutes.

Universal Event Tracking (UET): Microsoft's conversion tracking tag. Install once, then track multiple conversion actions across your website.

Creating Your First Campaign

Ready to start? Here's a step-by-step walkthrough.

Step 1: Create Your Account

Visit ads.microsoft.com and sign up. You'll need:

  • A Microsoft account (create one if you don't have it)
  • Business information
  • Payment method

The setup wizard guides you through initial preferences including time zone and currency. Choose carefully—these are difficult to change later.

Step 2: Install UET Tag

Before launching ads, install the Universal Event Tracking tag on your website. This enables conversion tracking—without it, you can't measure results effectively.

  1. Navigate to Tools > UET Tags
  2. Create a new tag and copy the code
  3. Add the code to your website's header (or use Google Tag Manager)
  4. Set up conversion goals (purchases, form submissions, phone calls, etc.)

Step 3: Create a Campaign

Click "Create Campaign" and choose your objective:

  • Visits to my website: Focus on driving traffic
  • Conversions in my website: Optimize for specific actions
  • Phone calls to my business: Prioritize call-based leads
  • Visits to my store: Drive foot traffic (local businesses)
  • Sell products from your catalog: Shopping campaigns

For most beginners, "Conversions in my website" provides the best foundation.

Step 4: Configure Campaign Settings

Name: Choose something descriptive. "Search - Running Shoes - US" beats "Campaign 1."

Budget: Set a daily budget that allows meaningful testing. $20-50/day is reasonable for learning; less may result in too few clicks for optimization.

Location: Target where your customers are. Be specific—"United States" is broad; "California" or specific cities might be more efficient.

Language: Match your ad language to searcher language settings.

Step 5: Create Ad Groups and Keywords

Organize keywords into tightly themed ad groups. If you sell shoes:

  • Ad Group 1: Running shoes (running shoes, best running shoes, buy running shoes)
  • Ad Group 2: Dress shoes (dress shoes, mens dress shoes, womens dress shoes)
  • Ad Group 3: Hiking boots (hiking boots, waterproof hiking boots)

Use match types to control when ads trigger:

  • Exact match: [running shoes] triggers only for that exact phrase
  • Phrase match: "running shoes" includes variations containing those words
  • Broad match: running shoes triggers related queries (use cautiously)

Start with phrase and exact match to maintain control while learning.

Step 6: Write Your Ads

Responsive search ads let you provide:

  • Up to 15 headlines (25 characters each)
  • Up to 4 descriptions (90 characters each)

Microsoft's system tests combinations and optimizes automatically. Write variety:

  • Headlines with your keyword
  • Headlines highlighting benefits
  • Headlines with calls to action
  • Headlines featuring differentiators (free shipping, 24/7 support)

Descriptions should expand on your value proposition and include a clear next step.

Step 7: Launch and Monitor

Review everything, then click launch. Your ads will typically start appearing within hours (some new accounts require brief review).

Check performance daily during your first weeks:

  • Are impressions and clicks happening?
  • Is CTR reasonable (1-3% for search)?
  • Are conversions tracking properly?

Budget Setting

Your budget determines how much Microsoft Advertising can spend daily. Setting it appropriately affects both learning and results.

Daily Budget Guidelines

Testing phase ($20-50/day): Enough to generate data without excessive risk while you learn the platform.

Growth phase ($50-200/day): Once you understand what works, scale investment in profitable campaigns.

Mature campaigns ($200+/day): Proven campaigns with consistent returns can justify larger budgets.

Budget Allocation Tips

Don't spread too thin. Better to fund one campaign adequately than three campaigns poorly. Underfunded campaigns don't gather enough data to optimize.

Account for learning periods. New campaigns need 2-4 weeks to gather meaningful data. Budget accordingly and resist judgments based on early results.

Match budget to keyword costs. If your target keywords average $5 CPC, a $10/day budget means only two clicks daily—not enough data.

Bidding Strategy Options

Manual CPC: You set maximum bids for each keyword. Maximum control, but requires ongoing attention.

Enhanced CPC: You set base bids; Microsoft adjusts them based on conversion likelihood.

Maximize Clicks: Automated bidding to get maximum clicks within your budget.

Maximize Conversions: Automated bidding focused on generating conversions.

Target CPA: Specify your target cost per acquisition; automation optimizes toward that goal.

Beginners often start with Manual CPC or Enhanced CPC, then transition to Target CPA once conversion data accumulates.

Success Tips

These principles help new advertisers avoid common pitfalls and accelerate results.

Start with What Works Elsewhere

If you're running Google Ads successfully, import those campaigns. Same keywords, ads, and structures that perform on Google often work on Microsoft—and importing saves setup time.

Leverage LinkedIn Targeting

LinkedIn profile targeting lets you layer professional attributes onto search campaigns. Start in observation mode to see how different segments perform, then apply bid adjustments or targeting based on data.

Build Strong Negative Keyword Lists

Prevent wasted spend by proactively blocking irrelevant terms. Review search term reports weekly and add negatives for queries that don't match your offering.

Test Continuously

Run multiple ad variations and let data determine winners. Test different headlines, descriptions, calls to action, and value propositions. Small improvements compound over time.

Don't Abandon Too Quickly

New campaigns need time to gather data and optimize. Avoid major changes or conclusions based on small sample sizes. Give campaigns at least 2-4 weeks and several hundred clicks before judging performance.

Frequently Asked Questions

How does Microsoft Advertising differ from Google Ads?

Both are PPC platforms with similar mechanics. Microsoft Advertising has lower competition (often lower CPCs), reaches different audiences (Bing, Yahoo, AOL users), and offers unique LinkedIn targeting. Many advertisers run both platforms.

Can I import my Google Ads campaigns?

Yes. Microsoft Advertising offers direct import functionality. Connect your Google account, select campaigns to import, and Microsoft transfers campaign structures, keywords, ads, and settings automatically.

What's a good budget to start with?

Begin with $20-50/day during your testing phase. This generates meaningful data without excessive risk. Scale based on results—increase budget for profitable campaigns, pause or optimize underperformers.


Key Takeaways

  • Microsoft Advertising reaches unique audiences across Bing, Yahoo, and AOL—often at lower costs than Google Ads
  • LinkedIn profile targeting is exclusive to Microsoft, enabling professional attribute targeting unavailable elsewhere
  • Account structure mirrors Google Ads (campaigns, ad groups, keywords, ads), making the learning curve manageable
  • Install conversion tracking before launching campaigns—without data, you can't optimize
  • Start with reasonable daily budgets ($20-50), gather data for 2-4 weeks, then scale what works

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