Microsoft’s Copilot adds Showroom ads and Dynamic filters

Microsoft is ramping up its advertising efforts in Copilot, introducing new interactive ad formats and reporting improved ad relevance metrics. This is meant to enhance interactivity and personalization for users.

The big picture. Copilot ads are now fully implemented in English, French, and German markets, with Spanish and Japanese coming soon.

New ad formats. Microsoft is launching two ad formats designed specifically for Copilot:

Microsoft Advertising Showroom ads:

• Immersive digital experience mimicking physical showrooms.
• Allows users to explore products and ask questions.
• Rich sponsored content complements organic experience.
• Future plans include integration of brand agents for direct engagement.

Dynamic filters:

• Helps users refine searches without additional typing.
• Narrows down options based on individual preferences.
• Pilot launching in English language markets in March.

By the numbers. Microsoft Advertising research shows ad relevance metrics in Copilot are 25% better than traditional search, leveraging richer conversation signals.

Why we care. The introduction of interactive ad formats like Microsoft Advertising Showroom ads and Dynamic filters allows for a more immersive experience, potentially increasing conversions by aligning ads more closely with user preferences.

Additionally, the improved ad relevance metrics and dynamic ad generation capabilities could lead to higher click-through rates and better campaign performance, making these updates valuable for advertisers seeking to optimize their digital marketing strategies.

What’s next. Microsoft will begin piloting Showroom ads with select clients in April, potentially transforming online product interactions.