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Microsoft has been present in the e-commerce environment for some time now and has built a strong position not only in software and cloud solutions but also in the field of digital advertising. In the world of online retail, Microsoft stands out as one of the key players, thanks to its broad range of modern and innovative tools that address the needs of both consumers and advertisers. Most recently, Microsoft introduced two notable innovations that are worth the attention of e-shop owners – Showroom Ads and App Campaigns, both of which are currently in the pilot phase.
These new ad formats aim to connect advertisers with customers more effectively while delivering a more relevant and engaging online shopping experience for consumers. A key component is the integration of generative AI and the Copilot voice assistant, which plays a central role in both formats. This new development from Microsoft is expected to significantly enhance the e-commerce space – particularly through advanced conversational interfaces, personalized recommendations, and an emphasis on shopping convenience.
How Will Showroom Ads Transform Online Shopping?
Showroom Ads are one of the newest ad formats from Microsoft Ads, designed to replicate the experience of visiting a physical showroom – but in the digital space. During the interaction with AI Copilot, users are immersed in an interactive environment where they can closely examine products, compare them with others, ask follow-up questions directly within the ad, or receive tailored recommendations. With Copilot’s support, the ad transforms into an interactive dialogue that delivers real-time answers and increases the likelihood of conversion. Showroom Ads are currently available as part of a pilot program in selected markets, with Microsoft planning a gradual rollout.
Source: Microsoft Ads
The above slides showcase a real example of a conversation between a user and Microsoft Copilot. The user asks a question about choosing new running shoes (“I am looking for a new pair of running shoes…”), and the Copilot immediately provides personalized recommendations based on available products.
After selecting one of the suggested models (in this case, the “Contoso” model), the Copilot displays a Showroom Ad — a new interactive ad format that allows brands to visually and content-wise showcase their products directly within the assisted conversation.
What Makes Showroom Ads Unique?
- Premium visual presentation of products.
- Advanced product comparison capabilities.
- Voice interaction through Copilot.
- Relevant and personalized product recommendations based on user preferences.
- Rich, immersive user experience that simulates shopping in a real store.
App Campaigns as a New Way to Promote Mobile Applications
Source: Microsoft Ads Blog
In addition to Showroom Ads, Microsoft has also introduced a second major innovation – App Campaigns, a format specifically designed for promoting mobile applications. This new format is developed to effectively reach users across various devices, including PCs, mobile phones, and gaming consoles. App Campaigns will appear in premium placements across Microsoft’s network, such as Microsoft Casual Games, King game titles (including popular games like Candy Crush), and even the Windows Start menu.
The main goal of App Campaigns is to increase app downloads and boost user engagement through an AI-powered automated system. This innovative format is currently in the testing phase of a pilot program, and is therefore available only to selected advertisers. Microsoft aims to gather feedback that will help fine-tune the solution before wider rollout.
Key Benefits of App Campaigns
- Integration into popular game titles through a partnership with King.
- Premium ad placements in the Windows Start menu or Microsoft Store (reaching over 1 billion users).
- Seamless redirection to app stores without unnecessary steps.
- AI-driven optimization of placement and creatives.
- Increased user engagement through integration with gaming environments.
Source: Microsoft Ads Blog
Conclusion
With its continuous stream of innovations, Microsoft consistently proves itself to be one of the most dominant players in online advertising. Once the pilot testing phase is complete, Showroom Ads and App Campaigns are expected to become intelligent, modern solutions that combine the latest technological trends with the practical needs of advertisers. The result will be an increasingly sought-after level of personalization, greater consumer engagement, and a smoother journey from initial interest to final conversion.
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