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The Future of Advertising: Microsoft’s Insights on Conversational AI

As artificial intelligence (AI) continues to advance at breakneck speed, it’s no surprise that companies like Microsoft are looking for ways to take advantage of the technology in advertising. Kya Sainsbury-Carter, Microsoft’s Corporate Vice President of Advertising, shared some key insights regarding the future of advertising and conversational AI at the recent SMX Advanced conference.

Tackling Traditional Search Issues

First and foremost, Sainsbury-Carter highlighted the universal problem with traditional search, which is that billions of search queries fall short of the mark. It can be difficult to find the information people are seeking, and so Microsoft launched Bing Chat to bring better search results and answers to complex questions. The new Bing was designed to succeed where traditional search results can sometimes fail.

Microsoft has worked on solving historic search issues by combining the power of large language models like OpenAI with its own search index. This will ensure that the results delivered are current, cited, and, as Sainsbury-Carter said, “conversational.”

Increased Engagement and Performance for Advertisers

According to Sainsbury-Carter, Microsoft’s conversational AI is driving a higher click-through rate (CTR) than traditional search, which in turn leads to an increased conversion rate. The faster user journey to conversions attributed to Bing Chat’s conversational AI makes it possible to boost user engagement and enhance user experience. While Microsoft has not yet released specific data regarding the increased CTR, the fact that it applies to both search results and ads is promising for search marketers.

From Keywords to Topics

Another key insight shared at SMX Advanced is that advertisers can expect traditional keyword targeting to shift towards a more topic-centric approach with conversational AI. This change in strategy should reflect intent more accurately and offer tremendous opportunities for ads to match conversations better, leading to better ROI.

It’s Not All About AI

While conversational AI is undoubtedly a hot topic in the advertising industry, Sainsbury-Carter made it clear that traditional search isn’t going away anytime soon. Microsoft is also focusing on delivering more visual and immersive experiences, as well as new vertical ad experiences that you can’t find on any other platform. The spotlight is currently on conversational AI, but it’s not the end of traditional search.

Conclusion

In conclusion, Microsoft’s conversational AI is driving increased engagement and higher CTRs for advertisers, and traditional search is not going anywhere anytime soon. While there may be a shift towards a more topic-centric approach with conversational AI, it’s also essential to focus on the user experience and ad quality. As AI continues to advance, advertisers must keep up to stay ahead of the competition.

We want to thank the thought leader Nicola Agius as the source for this content and such awesome teachings on the subject, and we hope that this article can help you and your business! Here’s the link to his post: https://searchengineland.com/microsoft-conversational-ai-advertising-428289

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