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n October, Microsoft introduced several updates to Copilot and its ad platform. At the recent Microsoft Advertising Partner Pulse meeting, they provided deeper insights into these changes. Topics included research findings, enhanced Copilot ad integration, and tips for optimizing Performance Max campaigns.
These updates reflect Microsoft’s push to improve the AI search experience and seamlessly integrate ads into conversational search. Businesses can use these tools to stay ahead in AI advancements while effectively managing their ad campaigns.
Consumer Trust in AI Search Results
One key update is how Microsoft Copilot separates organic content from sponsored ads. Ads are now woven into the entire conversation during a session, rather than appearing only after the last prompt. This streamlined design aligns with the way users interact with conversational search.
To better understand user behavior, Microsoft conducted a study on how people perceive AI-driven search, often called “chat.” The findings show that users increasingly trust and rely on chat platforms for search:
Key Insights:
- Growing Trust in AI:
38% of U.S. consumers say they “very much trust” results from generative AI. Among current Copilot users, 50% report high levels of trust. - Frequent Usage:
Half of Copilot users engage with it multiple times a week, and 16% use it daily, showing that chat has become a regular tool for many. - Perceived Accuracy:
77% of users find chat and traditional search equally accurate, with 38% saying chat results are more precise and easier to understand.
Microsoft believes this shift signals a major change in how people interact with search technology. Conversational queries provide more detailed and relevant results compared to traditional keyword-based searches.
Why Ads in Chats Work
Ads in conversational search are highly relevant to what users are looking for. This alignment with user intent helps ads blend naturally into the chat experience, earning trust and improving engagement.
New Opportunities for Advertisers
As more people use chat platforms, advertisers have new ways to connect with their audience. A third of chat users already use these platforms to research products and brands.
Beyond product research, users turn to chat for tasks like:
- Finding recipes or meal ideas.
- Planning trips and discovering travel deals (17%).
- Searching for gift ideas (19%).
- Learning about health topics.
Since ads are served based on the entire session rather than a single query, they feel more timely and relevant. This creates opportunities to engage consumers at different stages of their decision-making process.
Final Thoughts
Microsoft’s updates highlight the growing role of AI and chat in shaping the future of search and advertising. For businesses, this is a chance to embrace new technology, build trust with consumers, and explore creative ways to reach their audience.
