New Microsoft Ad solution targets shoppers based on categories, uses keywords as “boosters”

Microsoft has just announced a non-targeting solution to help brands to leverage keywords without the constraints of traditional keyword targeting. The approach aims to maximize reach and performance for advertisers while simultaneously increasing advertising revenue for retailers.

The limitations of traditional keyword targeting. Keyword targeting has long been the go-to approach for search advertising in retail media. However, exclusively focusing on keywords can limit a campaign’s performance and spend-through, thereby constraining the revenue potential for retailers. This is because shoppers on retail websites often browse through categories rather than searching for specific products, which renders keyword targeting less effective.

The potential of category-based targeting with keywords. In response to the challenges posed by traditional keyword targeting, Microsoft PromoteIQ developed a solution to target shoppers based on the categories they browse while using keywords as a booster for campaign bids. This hybrid approach allows advertisers to tap into both audience behaviors, resulting in improved performance for both retailers and advertisers.

The benefits. Advertisers can utilize this new solution to boost bids with keywords for shoppers searching for specific products, increasing the likelihood of converting purchase intent into a sale.

Retailers, on the other hand, can optimize their site experience by using product taxonomies and categorization, making it easier for shoppers to find what they want. By integrating category-based targeting with keyword boosting, Microsoft’s AI-driven algorithms can deliver more relevant ads, enhancing the overall shopping experience.

Efficiency in Campaign Management. Unlike traditional keyword targeting, which necessitates extensive research and the creation of a comprehensive keyword list for each campaign, the new solution only requires advertisers to test and retain a few high-performing keywords. This streamlined process should ideally result in greater demand for retailers, as they no longer have to deal with exhaustive keyword lists.

Early testing. “Tests have shown that applying this unique solution has delivered impressive results. Campaigns that boost bids by keyword while targeting by category exhibit 320% higher click-through-rate (CTR) than the campaigns without boosting bids by keyword,” Microsoft says.

Dig deeper. Read the announcement from Microsoft here.

Why we care. This latest development in category-based targeting with keyword leveraging is supposed to maximize revenue and sales for both retailers and advertisers, while also delivering an exceptional experience for shoppers. Interested advertisers should test the new

To learn more about this cutting-edge solution, visit the Microsoft PromoteIQ website or inquire about their services.

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