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Microsoft consolidates bidding strategies

Microsoft removes standalone Target CPA and ROAS options, integrating them as goals within existing maximize strategies.

Luis Rijo

• 5 min read
Microsoft Ads consolidates Target CPA and ROAS into Maximize strategies with optional goals after August 4.
Microsoft Ads consolidates Target CPA and ROAS into Maximize strategies with optional goals after August 4.

Microsoft Advertising today announced significant changes to its bidding strategy structure that will affect how advertisers manage automated campaigns. The platform will eliminate Target CPA and Target ROAS as separate bidding strategies, instead incorporating them as optional goals within Maximize Conversions and Maximize Conversion Value campaigns.

According to Microsoft's official documentation, the changes take effect immediately for new campaigns created after August 4, 2025. "Starting on August 4, 2025, the Target CPA (cost per acquisition) and Target ROAS (return on ad spend) bid strategies won't be available for any newly created campaigns," states the updated help documentation. Existing campaigns utilizing these strategies will continue operating without interruption.

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Summary

Who: Microsoft Advertising affects all advertisers using or planning to use Target CPA and Target ROAS bidding strategies, with particular impact on campaign managers, digital agencies, and enterprise advertisers utilizing automated bidding.

What: Microsoft eliminates Target CPA and Target ROAS as standalone bidding strategies, integrating them as optional goals within Maximize Conversions and Maximize Conversion Value campaigns. The change preserves functionality while simplifying the interface structure.

When: The changes took effect on August 4, 2025, for all newly created campaigns. Existing campaigns using deprecated strategies continue operating unchanged, while portfolio bid strategies remain unaffected.

Where: The modifications apply across Microsoft Advertising's entire platform, including the web interface, API, Microsoft Advertising Editor, and bulk management tools. Portfolio bid strategies maintain separate access to Target CPA and Target ROAS options.

Why: Microsoft aims to reduce bidding strategy complexity while maintaining optimization capabilities. The consolidation addresses user feedback regarding strategy selection confusion and aligns with industry trends toward streamlined automated bidding interfaces.

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The transformation represents a fundamental shift in Microsoft's approach to automated bidding. Target CPA will now function as an optional goal within Maximize Conversions campaigns, while Target ROAS becomes an optional parameter for Maximize Conversion Value strategies. This consolidation mirrors broader industry trends toward streamlined bidding options, particularly evident in competitor platforms' recent strategic adjustments.

Microsoft's transition process includes automatic migration protocols for existing users. When advertisers attempt to update campaigns to the deprecated TCPA or TROAS bid strategies through the API, Microsoft Advertising Editor, or bulk actions, the system will automatically convert them to the appropriate maximize strategy. TCPA campaigns convert to Maximize Conversions with the original target preserved as an optional goal, while TROAS campaigns migrate to Maximize Conversion Value with the target maintained.

The technical implementation ensures seamless workflow continuity. "Microsoft will pass through the original TCPA/TROAS to the new Maximize Conversions and Maximize Conversion Value bidding strategy respectively," explains Navah Hopkins, Microsoft Ads Liaison, in her LinkedIn announcement. "This ensures no disruption in your campaign workflow as well as no need to manually change your bidding strategies."

Portfolio bid strategies remain unaffected by these changes. Microsoft confirmed that advertisers using portfolio bid strategies will continue accessing Target CPA and Target ROAS options without modification. This preservation maintains sophisticated campaign management capabilities for enterprise advertisers managing multiple campaigns with shared optimization goals.

The consolidation addresses interface complexity that has historically challenged advertisers selecting appropriate bidding strategies. By reducing the number of distinct strategy types, Microsoft aims to simplify the decision-making process while maintaining optimization capabilities. The change follows Google's decision to sunset Enhanced CPC for search and display ads by March 2025, indicating industry-wide movement toward fewer but more sophisticated automated options.

Microsoft's implementation differs from Google's approach in several key aspects. While Google phases out Enhanced CPC entirely, Microsoft preserves existing functionality through goal integration rather than elimination. This strategy maintains backward compatibility while encouraging adoption of newer optimization frameworks. The approach also contrasts with Google's introduction of Target CPC bidding for Demand Gen campaigns, which expanded bidding options rather than consolidating them.

For campaign setup procedures, advertisers creating new campaigns must now select Maximize Conversions or Maximize Conversion Value as primary bidding strategies before optionally specifying TCPA or TROAS goals. This two-step process replaces the previous single-selection method, requiring adjustment to established workflow patterns. The change affects campaign creation across Microsoft Advertising's interface, API, and bulk management tools.

Performance tracking remains consistent despite the structural changes. Microsoft confirmed that campaigns will continue optimizing against specified targets after conversion to maximize strategies. The underlying algorithmic approaches maintain their focus on achieving advertiser-defined cost or return objectives while leveraging the expanded optimization capabilities of maximize strategies.

Cross-platform implications extend beyond Microsoft's ecosystem. The consolidation occurs amid increasing integration between advertising platforms, exemplified by Search Ads 360's support for Microsoft automated bidding. Enterprise advertisers utilizing multi-platform optimization tools must adapt their strategy configurations to accommodate Microsoft's structural changes while maintaining performance consistency across channels.

The timing coincides with Microsoft's broader platform enhancements throughout 2025. Previous updates included portfolio bid strategy expansion with Max Conversion Value and new automated bidding options for Audience Ads, indicating sustained investment in optimization technology. These developments position Microsoft's platform competitively against Google's advancing automation capabilities.

Industry implications extend to bid management tool vendors and agencies managing client campaigns. Third-party platforms must update their interfaces and API integrations to accommodate the new bidding structure. The changes particularly affect automated rule systems and bulk management workflows that reference specific bidding strategy types. Campaign management protocols require revision to align with the consolidated approach.

Microsoft's documentation emphasizes that no functional changes affect the bidding algorithms themselves. The optimization logic for Target CPA and Target ROAS remains identical, with only the interface and setup process modified. This preservation ensures that performance patterns and optimization effectiveness continue without algorithmic disruption during the transition period.

The consolidation also addresses advertiser feedback regarding bidding strategy selection complexity. Microsoft research indicated that advertisers frequently struggled to differentiate between maximize strategies and target-based approaches, often selecting suboptimal configurations for their objectives. By integrating target goals within maximize strategies, the platform reduces decision points while maintaining optimization granularity.

Training implications affect both platform users and Microsoft's support organization. Customer success teams must update their guidance materials and training protocols to reflect the new structure. The change requires comprehensive communication to prevent confusion during the transition period, particularly for advertisers accustomed to selecting target-based strategies as primary options.

Microsoft's approach preserves enterprise functionality while simplifying the user experience. Large advertisers managing numerous campaigns benefit from the maintained portfolio bid strategy capabilities, while smaller advertisers gain access to streamlined optimization without losing targeting precision. This balance addresses diverse user needs across Microsoft's advertising customer base.

The long-term implications suggest continued platform consolidation across the digital advertising industry. Microsoft's bidding strategy reorganization follows similar simplification efforts from major platforms, indicating a maturation phase where core optimization capabilities stabilize around proven algorithmic approaches. This trend may accelerate as platforms focus on interface refinement rather than feature expansion.

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