Key Highlights:

• Microsoft announced the launch of a new AI-based advertising tool called Predictive Targeting.
• This AI advertising tool uses machine learning to enhance conversion rates and streamline all targeted advertising efforts.
• Microsoft has claimed that this tool will be able to improve your conversion rates by approximately 46%.

With all tech giants like Google, Apple, and Meta moving more towards integrating AI, Microsoft has also decided to step up its AI game. Microsoft has recently announced that they are about to launch a new AI-powered advertising tool called Predictive Targeting.

This new AI-powered advertising tool uses machine learning to help all advertisers identify new hidden audiences. Microsoft has proclaimed that finding newer and more receptive audiences will help advertisers increase their conversion rates by approximately 46%!

But how does Microsoft achieve this with Predictive Targeting?

Predictive Targeting uses various reports and signals generated by the existing ads of advertisers and their landing pages. In addition, the AI also collects data about Microsoft’s audience-related data as well.

Using such data, the AI uses machine learning to determine customers’ preferred “common traits.” This is great because audiences with these common traits are likely to become customers after viewing your ads.

After Predictive Targeting has “targeted” these potential customers, the ads get shown to them first on a priority basis. Therefore, this has the potential to drive advertisers’ conversion rates, which Microsoft believes to increase by approximately 46%.

This streamlines the advertising process as advertisers will no longer have to spend time and energy conducting market research to find the best audience to target. Microsoft’s Predictive Targeting will do this for you, saving you time and money.

However, many experts believe that allowing Predictive Targeting’s AI will provide it more control over who sees your ads. Therefore, it might be shown to audiences who might become suitable customers but might belong to a demographic you might not have intended to reach in the first place.

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