A major tech company is strengthening its AI capabilities with the aim of increasing advertising revenue. Microsoft touts his Copilot | DIGIDAY[Japanese version]
- Microsoft is also expanding its efforts to use AI in the advertising field, with a redesigned integrated AI assistant called Microsoft Copilot at the center of this.
- Bing Chat has been updated with new generative AI ad formats. The ad format is based on Bing chat data used to research and compare products.
- Competitors are similarly strengthening their generative AI platforms with the aim of increasing advertising revenue.
As Microsoft builds new AI tools into all its devices and software platforms, it’s also expanding its testing of AI-powered advertising.
At its fall event in New York in mid-September, the company announced new generative AI capabilities coming to Windows, Edge, Bing, and Microsoft 365. Also announced are two new laptops. Powering all of this is the redesigned Microsoft Copilot, a unified AI assistant that navigates across apps, operating systems, and devices.
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In his opening remarks, CEO Satya Nadella said,Current AI competitionushered in the Copilot era. “Your PC becomes your CP (co-driver).” The idea was to put a PC in every home and desk. Today, we have a vision for Copilot that can empower every person and every organization on the planet.”
The power of updated Bing Chat
When the Windows 11 update was released in late September, it added 150 new features. Additionally, Microsoft is releasing “Microsoft 365 Copilot” for businesses on November 1st.
One way everyday PC users can access new features is through the updated Bing Chat. Chat results can now be personalized by providing interesting answers based on past conversations. Users will also receive free updates, including more personalized online shopping and the ability to create images with DALL-E 3. Additionally, new tools will be included in programs such as Outlook, Excel, OneNote, and Word, making them even more powerful and impactful for businesses.
A number of new Copilot features, including those built for Microsoft’s advertising platform, will be able to answer questions, recommend content, and more in the coming months. Become. For example, Copilot provides advertisers with new perspectives on their campaigns and generates new images for ads used in products and search trends.
While non-ad tools took center stage at the aforementioned event, Microsoft also created a new generative AI ad format within Bing Chat. The first new format, called “compare and decide ads,” allows advertisers to be involved in how shoppers decide what to buy. The format is still in alpha testing, but closed beta testing is scheduled for January 2024.
“This new AI ad format is based on Bing chat data that people use to research and compare products,” said Kaiya Sainsbury-Carter, corporate vice president of advertising at Microsoft. For example, a person looking to buy a car might receive an ad offering a “very concise comparison table” with information about different makes and models.
“It makes it very easy for users to compare options that they think are important to them,” he said. “We have some really interesting use cases, and those use cases are… “It’s very close to what users are interested in.” He also said that “chat ads already have click-through rates that are about twice as high as other Bing ads,” and that Bing chat increases user dwell time and that AI-powered shopping ads have 11% more click-throughs. He emphasized that it is increasing.
reasonable options
Microsoft alsoannounced in mayThe company is working on a chatbot API for publishers and announced Snap and Axel Springer as its first partners. For Snapchat, the chatbot API will help power advertising on the social platform’s chatbot, My AI. For Axel Springer, chat advertising integration begins with Hey, a ChatGPT-powered bot from German daily BILD.
Sainsbury-Carter declined to disclose revenue-sharing details or other information about either partner. However, the focus is on how each publisher considered it a “reasonable option” to have a chat option. At this time, the AI ad formats in Publisher API are the same as those introduced in Bing Chat, including text ads, shopping ads, and new comparative ads.
Generative AI is the key to increasing advertising revenue
These news come in the same week that rivals like Google and Amazon announced major updates to their own generative AI platforms. On September 19th, Google announced updates to its chatbot Bird and its integration into major applications such as YouTube, Gmail, Google Docs, and Google Maps.Amazon announces its latest language model called Alexa LLM. The company said it would provide various functions to newly emerging smart devices.
“Copilot and Bing’s new AI capabilities will help advertisers create user profiles for targeted advertising,” said Patrick Moorhead, CEO and Chief Analyst at Moor Insights & Strategy. Stated. This is also likely to be followed by other tech giants.
“Both Microsoft and Amazon have big prospects for increasing advertising revenue,” Moorhead said. “If you want to know what approach they take, you should follow the data. Look at the data that Amazon has, then look at the data that Microsoft has. Neither of them uses it in their advertising strategy. It can’t be possible.”
[Originaltext:Microsoft heralds a new age of AI ‘copilots’ across hardware, software — and advertising]
Marty Sawant (Translator: SI Japan, Editor: Ryohei Shimada)
