Microsoft’s new AI powered Bing is set to launch a new feature called AI Ads, which will utilize artificial intelligence (AI) to create personalized advertisements. Channel News Asia reports that the feature will use natural language generation (NLG) and computer vision to generate ad copy and images. The feature will optimize ads for various platforms and devices, such as desktops, mobile phones, and tablets.
According to unnamed sources cited in the report, Microsoft has been testing AI Ads with partners in the Asia Pacific since late 2022 and plans to roll out the feature globally in mid-2023. The report suggests that AI Ads can increase click-through rates by up to 25% compared to traditional ads.
Microsoft to Challenge Google in Advertising
In the highly competitive online advertising industry, Google currently dominates with a global market share of 92% for search engines as of January 2023. Microsoft’s Bing, on the other hand, only holds 2.5% of the market. Microsoft hopes that AI Ads will give Bing an edge over its competitors and help it gain more market share.
Google has already been offering a similar feature called Responsive Search Ads since 2018, which uses machine learning to create and test various combinations of headlines and descriptions for ads. However, Microsoft claims that its AI Ads are more advanced and flexible. AI Ads can create ads in different formats, languages, and images from scratch or utilize existing ones from advertisers’ websites or social media accounts.
Microsoft’s AI Ads feature is part of the company’s broader strategy to leverage its expertise in AI across its products and services. It has been investing heavily in AI research and development, acquiring several AI startups and providing various AI tools and platforms for developers and businesses.
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