Search Ads 360 integrates Microsoft Automated Bidding

Google this week announced a significant update to its Search Ads 360 platform, introducing support for Microsoft automated bidding. This development, revealed just three days ago, marks a pivotal moment in cross-platform advertising optimization. The new feature allows enterprise advertisers to leverage Microsoft's automated bidding technology within their Search Ads 360 bid strategies, potentially enhancing performance across multiple search engines and channels.

According to Stephen Yap, Managing Director of Google Marketing Platform, advertisers utilizing Search Ads 360 multi-channel and multi-engine optimization portfolios typically experience a 5% increase in conversions or conversion value compared to optimizing channels and engines independently. This statistic underscores the importance of cross-platform integration in modern digital advertising strategies.

The integration of Microsoft automated bidding into Search Ads 360 represents a significant step towards more comprehensive and efficient campaign management. Microsoft's automated bidding system optimizes bids at the auction level in real-time, a capability that can now be seamlessly incorporated into broader cross-channel strategies within the Search Ads 360 environment.

One of the key features of this integration is the ability to power Microsoft automated bidding with Floodlight data. Floodlight, Google's conversion tracking system, enables de-duplicated, cross-channel, and cross-engine measurement. By sharing relevant Floodlight data with Microsoft, advertisers can ensure that Microsoft's bidding algorithms are optimizing based on the same conversion data used across other platforms, creating a more unified and accurate approach to bid management.

The impact of this integration has already been demonstrated in real-world applications. Urban Outfitters, a multinational lifestyle retailer, participated in a 5-week test of the new feature. According to Chris Worthington, Managing Director of Marketing & Ecommerce at Urban Outfitters, the implementation of Microsoft automated bidding with Floodlight data resulted in an 83% surge in revenue and a doubling of return on ad spend (ROAS).

From a technical perspective, the integration allows for the inclusion of campaigns using Microsoft automated bidding alongside campaigns using Google auction time bidding within a single Search Ads 360 bid strategy. This combined approach leverages Google AI to identify the most cost-efficient conversions across campaigns, maximizing overall performance.

The integration also extends to budget bid strategies, a type of bid strategy that uses Google AI to efficiently allocate budgets across campaigns. This feature allows advertisers to optimize fixed monthly budgets while maintaining granular control through ROI limits and custom spend allocations throughout the month.

Implementing Microsoft automated bidding in Search Ads 360 has been designed to be user-friendly. The process involves two primary steps: First, advertisers must enable the sharing of Floodlight data with linked Microsoft advertising accounts in their conversion settings. Second, they need to activate Microsoft automated bidding in their bid strategy settings.

The technical details of this integration are noteworthy. Microsoft Advertising auction-time bidding, also referred to as "Microsoft automated bidding," can be enabled in several types of Search Ads 360 bid strategies, including Target CPA, Target ROAS, and Maximize conversions for budget bid strategies. The feature supports various campaign types, including Search, Shopping, and Dynamic search ads.

Additionally, the integration is compatible with several advanced features, such as Custom Variable Adjustments (CVA), Data Exclusions, and Seasonality Adjustments. However, it's important to note that for these features to function properly, they must be set up in both Search Ads 360 and Microsoft Advertising platforms.

One crucial aspect of this integration is the sharing of conversion data. Search Ads 360 Floodlight conversion data is shared with Microsoft Advertising (with advertiser consent) to enable both bidding systems to use the same conversion data. These shared Floodlight conversions appear as 'Offline conversions' under Conversion goals in Microsoft Advertising.

The integration also impacts conversion goal configuration. When sharing Search Ads 360 conversions with Microsoft Advertising, campaign goals configured in Search Ads 360 may automatically override relevant campaign conversion goals in Microsoft Advertising. This override occurs immediately when Microsoft Advertising auction-time bidding data sharing is enabled for the bid strategy.

For advertisers considering this new feature, there are several steps to enable bid strategies and budget bid strategies to use conversion data effectively. These steps include reviewing conversion goal configuration, enabling conversion-data sharing, adding Microsoft Advertising campaigns to a bid strategy or budget bid strategy, and activating the "Microsoft Advertising auction-time bidding" option in the chosen strategy.

Key facts about the Search Ads 360 Microsoft automated bidding integration

Announced on August 22, 2024

Allows use of Microsoft automated bidding in Search Ads 360 bid strategies

Powered by Floodlight conversion data for cross-platform consistency

Urban Outfitters reported 83% revenue increase and doubled ROAS in testing

Supports Target CPA, Target ROAS, and Maximize conversions bid strategies

Compatible with Search, Shopping, and Dynamic search ad campaign types

Requires two-step activation process in Search Ads 360 settings

Enables inclusion of Microsoft and Google campaigns in single bid strategies

Integrates with budget bid strategies for efficient budget allocation

Supports advanced features like Custom Variable Adjustments and Seasonality Adjustments

Requires setup of certain features in both Search Ads 360 and Microsoft Advertising platforms

Involves sharing of Floodlight conversion data with Microsoft Advertising

May override Microsoft Advertising campaign conversion goals with Search Ads 360 goals