In recent years, Microsoft has undergone a profound transformation, particularly in its search and advertising business. The driving force behind this shift? Artificial intelligence (AI). While AI may feel like an overused buzzword these days, its impact—especially through Microsoft’s partnership with OpenAI and the integration of tools like ChatGPT and Copilot—has been anything but ordinary.
The AI Shift and Its Impact on Search
When Microsoft integrated generative AI into Bing via ChatGPT, it changed the game—not only for Microsoft but for the entire search industry. For the first time in years, Google’s dominant position in search began to show cracks, with Microsoft steadily gaining market share.
The shift wasn’t just in search behavior. The entire Microsoft Advertising ecosystem has grown significantly. Through integrations with the Edge browser, the Microsoft Start menu, and Windows PCs, advertising has been seamlessly woven into the daily user experience. This integration has dramatically expanded the platform’s reach and capabilities.
Strategic Acquisitions Powering Growth
Microsoft’s strategic acquisitions have played a critical role in shaping its expanding advertising ecosystem. LinkedIn, Connected TV via Netflix, and the blockbuster acquisition of gaming giant Activision Blizzard (home to hits like Call of Duty and Candy Crush) have added diverse, high-quality inventory to Microsoft Advertising.
With these platforms, advertisers can now reach a massive, engaged audience across gaming, professional networking, streaming, and productivity tools. Advertising formats are evolving accordingly—from simple banners to immersive branded experiences within games and TV content.
The Microsoft Audience: Intent-Driven and High-Quality
One of Microsoft Advertising‘s strengths lies in the nature of its audience. Unlike platforms filled with casual mobile users, Microsoft users tend to be more affluent, task-focused, and intentional. They’re business professionals on LinkedIn, gamers across platforms, and users embedded in the Microsoft productivity suite. The platform also boasts strict content controls and curated publisher lists, ensuring brand-safe environments. Key partners include household names like Netflix, eBay, The Wall Street Journal, and USA Today.
For advertisers looking for ROI, this is a powerful ecosystem to tap into—especially as Microsoft opens the door to smaller advertisers by offering low or no minimum ad spend options, including on Netflix.
Gaming: The Untapped Advertising Frontier
Gaming is one of the most underutilized advertising channels—and Microsoft is poised to dominate this space. From casual players on Candy Crush to global fans of Call of Duty, gaming reaches an extraordinarily diverse audience. Advertising opportunities span from in-game banners to deeply integrated brand experiences. Microsoft’s acquisition of Activision Blizzard has only expanded this reach, unlocking access to hundreds of millions of users in over 190 countries.
AI-Driven Advertising Across Microsoft
Microsoft’s AI capabilities, developed in partnership with OpenAI, power the advertising experience across its platforms through Copilot. Unlike automation tools that replace marketers, Copilot enhances productivity—offering intelligent recommendations, insights, and campaign assistance across Word, Excel, Outlook, Bing, and more.
This AI presence extends into every layer of Microsoft’s ecosystem. From the Start menu that reaches 1.4 billion users, to the Edge browser and Bing mobile app, to Copilot in Office products—ads are now intelligently delivered in a context-aware, privacy-conscious environment.
Advertising in ChatGPT and Copilot
One of the most exciting frontiers is advertising within AI chat environments. Many users now start their search journey not with a traditional search bar, but with a conversation in ChatGPT or Copilot. These chats are integrated with Microsoft Advertising, meaning advertisers can reach users through text, product, multimedia, and vertical ads directly within AI-generated responses.
These AI-generated results often deliver higher intent and faster conversions, outperforming traditional keyword-based search ads. Microsoft’s Performance Max-style campaigns help automate ad placement across its inventory while still allowing for customization and control—addressing one of the common frustrations advertisers have with similar tools from competitors.
The Rise of Voice and Conversational Interfaces
The growth of voice interfaces is further reshaping user interaction. As people increasingly use voice commands to interact with their homes, phones, and desktops, advertising must evolve to meet these new behaviors. Microsoft’s tools, embedded with voice capabilities, are at the forefront of this change.
B2B Advertising and Intent Data with The Genius
“The Genius,” is a platform focused on efficient B2B customer acquisition. The Genius integrates high-quality intent data—collected across 5,000 websites and 4 million companies—allowing B2B marketers to identify and target companies actively researching their services.
Users can filter by company size, geography, industry, and topics, and then feed this data into Microsoft Advertising, LinkedIn, or sales outreach platforms. The results have shown up to 40% better marketing ROI.
Getting Started: Low Barriers, High Returns
Microsoft understands the complexity of adopting new advertising platforms. That’s why they’ve made it easier to import campaigns from Google or Meta and scale up gradually. Whether you’re managing a $500 test campaign or a six-figure enterprise budget, Microsoft provides tools and pathways for efficient scaling.
Additionally, new pilot programs—such as buying LinkedIn advertising directly within the Microsoft Advertising platform—are making it easier than ever to consolidate and manage B2B campaigns in one place.
Conclusion
Microsoft’s transformation is not just about integrating AI—it’s about creating a future-ready advertising ecosystem. With powerful tools like Copilot, access to premium content channels, and an increasingly diverse audience across search, gaming, productivity, and professional networking, Microsoft is rapidly becoming one of the most valuable platforms for advertisers of all sizes.
Whether you’re a B2B marketer seeking high-intent prospects or a consumer brand looking to expand reach through Netflix or Candy Crush, the Microsoft ecosystem—powered by AI—offers unprecedented opportunities.
If you’re interested in exploring Microsoft Advertising, trying out gaming ads, or leveraging intent data through The Genius, now is the time to engage.
Nate Burke is the founder and CEO of Diginius. This article is based on the talk Nate presented at Hero Conf UK in April 2025.
