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Microsoft reimagines customer engagement with conversational AI

Microsoft reimagines customer engagement with conversational AI

  • 21.03.2025 05:56
  • campaignasia.com
  • Keywords: AI, Conversational AI

Microsoft Advertising introduced new AI-driven features to enhance customer engagement, including dynamic filters for refined ad searches, an AI-powered Ads Studio for creative optimization, app campaigns through gaming platforms, and recognition of top partners. These innovations leverage conversational AI to create more meaningful brand interactions and streamline marketing efforts for businesses.

Microsoft ProductsBKNGsentiment_satisfied

Estimated market influence

Microsoft Advertising

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Analyst rating: N/A

Leveraging the interactive nature of Copilot, dynamic filters remove the friction of typing additional questions, not only saving time but also increasing the chance of answering specific requests.

King

King

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Analyst rating: Buy

Brands can now leverage the powerful reach of King and Microsoft Casual Games via the Microsoft Advertising Platform; promoting their apps on games like Candy Crush across Android, iOS, and Windows.

Context

Microsoft Advertising Innovations: Business Insights and Market Implications

Microsoft Advertising Showroom Ads

  • Dynamic Filters: Enable users to refine product searches based on personal preferences using Copilot. Reduces friction by allowing interactive refinement without additional typing, enhancing response rates.
  • Pilot launch: March 2024 in English-language markets.

Ads Studio

  • AI-Powered Creative Tool: Streamlines ad creation and optimization for performance marketers.
  • Features:
    • Expanded asset variety via generative AI.
    • Simplifies creative management across platforms, including Microsoft Invest DSP.
  • Launch: Coming quarters within the Microsoft Advertising Platform.

App Campaigns

  • Gaming Integration: Brands can promote apps through games like Candy Crush on Android, iOS, and Windows.
  • Pilot status: Ongoing with select clients; expansion planned.

2025 Global Partner Awards

  • Recognizes top contributors in agency, channel, supply, and technology sectors globally.
  • Winners:
    • Global Client Partnership of the Year: [Winner's Name]

Market Insights

  • Customer Engagement: Conversational AI enhances interactions, making ads more dynamic and responsive.
  • SMB Efficiency: Tools like Copilot streamline operations, enabling data-driven decisions and competitive positioning.
  • Brand Reach: Gaming platforms offer vast, engaged audiences across APAC, a cultural and economic hub for gaming.

Competitive Landscape

  • Microsoft's focus on conversational AI positions it ahead in interactive ad experiences, particularly with local language support. This could differentiate them from competitors like Google and Meta.

Long-term Effects and Strategic Considerations

  • Shift to Interactive Ads: Potential industry-wide shift towards more engaging, AI-driven ad formats.
  • Regulatory Impact: Possible scrutiny as conversational AI adoption grows, necessitating compliance measures.
  • Strategic Adaptation: Brands must integrate AI into marketing strategies to stay competitive, leveraging local insights for global campaigns.

Conclusion

Microsoft's innovations in conversational AI and dynamic ad tools signal a future of more personalized and efficient customer engagement. These developments underscore the growing role of technology in reshaping advertising landscapes globally.