Performance Max first results on Microsoft Advertising

Microsoft Advertising's Performance Max (PMAX) campaign type, launched earlier in 2024, has gained traction with advertisers seeking a streamlined approach to advertising across the Microsoft network. 

Advertisers might be drawn to PMAX's ability to potentially reduce campaign management time while reaching customers across a vast advertising network. According to Microsoft Advertising, combining PMAX with search campaigns could lead to a 32% decrease in cost-per-acquisition (CPA) and a threefold increase in return on ad spend (ROAS) on average. Even for advertisers already running search and audience ads, PMAX might deliver a 48% CPA reduction.

Microsoft Advertising suggests that PMAX's automation capabilities may be optimizing ad formats and improving click-through rates (CTRs). For instance, PMAX could increase CTRs for multimedia and product ads in Copilot by 5% and 25% respectively, and yield a 6x increase in CTR for dynamic search ads in Bing search compared to search campaigns alone.

There are early signs that PMAX ads might be generating high engagement. Studies by Microsoft Advertising suggest that retail searchers in the US exposed to PMAX ads were 2.6 times more likely to visit the advertiser's landing page and 4.2 times more likely to convert compared to those who weren't exposed.

Microsoft Advertising appears committed to continuous improvement for PMAX. A pilot program allowing brand exclusions is now available, potentially giving advertisers more control over where their ads appear. Additionally, campaign-level auto-generated asset settings and the ability to block individual text assets are being released to provide more oversight over the creative elements used in PMAX campaigns.

Search themes and search term insights reporting functionalities are planned for later this month to further enhance campaign management, according to Microsoft Advertising. Finally, video asset support for PMAX is under development.

Performance Max on Microsoft Advertising shows early promise as a tool for potentially lowering costs and increasing conversions. New features offer more control over campaign elements, and Microsoft Advertising continues to invest in PMAX's development.