According to Windows Report, Microsoft is currently developing new advertising formats for its Copilot AI conversational assistant, aiming to provide advertisers with a more dynamic and engaging way to reach a broader audience. These enhanced ad formats have already been made available to advertisers.
A key highlight of this update is the introduction of showcase-style ads, which present high-resolution product images and detailed descriptions when users search for relevant queries. This includes comprehensive product information, images, and purchasing options, streamlining the decision-making process for potential buyers.
Microsoft states that this immersive ad format allows users to interact directly with products within the Copilot AI environment, creating a more engaging shopping experience. Ultimately, this feature is designed to drive higher user engagement, increase traffic for advertisers, and boost conversion rates.
Additionally, the new dynamic filtering feature offers personalized product recommendations, enabling ads to adapt in real time based on user queries. By leveraging user preferences, this feature enhances ad relevance and improves conversion potential.
For instance, Microsoft explains that if a user searches for a laptop with specific features, dynamic filters can refine the search results to highlight those exact specifications, making the ad content more targeted and effective. This dynamic filtering functionality is set to launch in English-language markets starting in March.
Microsoft is gradually rolling out these advertising enhancements across different regions, meaning users may encounter a variety of ad formats while using Copilot AI, including the newly introduced showcase ads. However, Microsoft has yet to disclose any official data on the conversion rates of these new ad formats.
