Back to AI Ads Agency Guide

Microsoft Copilot: Best Entry Point, 73% Higher CTR

Angrez Aley

Angrez Aley

Senior paid ads manager

January 19, 20266 min read

Three reasons:

  1. 1.Fully accessible today — free Microsoft Ads account, no waitlist
  2. 2.Performance data is insane — 73% higher CTR, 16% higher CVR vs. traditional search
  3. 3.CPCs are 30-70% cheaper than Google

If you want to start selling AI ads tomorrow, Microsoft Copilot is the answer.

The Performance Numbers (Microsoft First-Party Data, Nov 2024-May 2025)

Metricvs. Traditional Search
Click-through rate+73%
Conversion rate+16%
Customer journey length-33% (fewer steps to purchase)
Purchases within 30 min of Copilot interaction+53%
Voice input growth (mobile)6x

Why? Users in Copilot conversations are actively researching purchases. They're asking specific questions, comparing options, seeking recommendations. High intent = high conversion.

How to Get Started (Step-by-Step)

  1. Step 1:Create a free Microsoft Advertising account (ads.microsoft.com)
  2. Step 2:Import your Google Ads campaigns (one-click import feature)
  3. Step 3:Set up Performance Max campaigns — these are eligible for Copilot Search placements
  4. Step 4:Use Copilot in Microsoft Advertising Platform (the AI assistant built into the dashboard) for campaign creation and optimization

That's literally it. No special approval. No beta application.

Ad Formats Available

Performance Max ads: Eligible for Copilot Search. Appear beneath organic responses in an "ad block."

Showroom Ads: Interactive split-screen experiences. Users can explore products, compare features, see different colors — all within the chat.

Ad Voice: Copilot explains WHY the ad is being shown, increasing trust and relevance.

Dynamic Filters: Ads adapt to the conversation context in real-time.

Copilot Checkout (Launched January 2026)

This is the conversion play. Users can buy products directly in Copilot without leaving the conversation.

  • Shopify merchants: Auto-enrolled. Manage via Shopify admin.
  • Non-Shopify: Apply at the Microsoft Merchant Center.
  • Processing: PayPal, Stripe.
  • You stay the merchant of record. You own the customer relationship.

The Copilot AI Assistant (Free Tool in Your Dashboard)

Microsoft built Copilot into the Ads platform itself. You can:

  • Ask "Why did my CTR drop 15% last week?" and get account-specific analysis
  • Generate ad copy variations in seconds
  • Create video ads from static images (Image Animation feature)
  • Diagnose campaign issues automatically

Case study: Priceline saw 10% CTR lift using Copilot-generated ad copy.

Agency Positioning

"We manage Microsoft Copilot advertising" is a real service you can sell TODAY. Most clients don't know this exists. You have first-mover advantage.

Pitch: "Google CPCs are insane. Microsoft Copilot gives you 73% higher CTR at 30-70% lower cost. Let me show you."

Manages all your accounts
Google Ads
Connect
Meta
Connect
Shopify
Connect
GA4
Connect
Amazon
Connect
Creatives optimization
Next Ad
ROAS1.8x
CPA$45
Ad Creative
ROAS3.2x
CPA$12
24/7 ROAS improvements
Pause 27 Burning Queries
0 conversions (30d)
+$1.8k
Applied
Split Brand from Non-Brand
ROAS 8.2 vs 1.6
+$3.7k
Applied
Isolate "Project Mgmt"
Own ad group, bid down
+$5.8k
Applied
Raise Brand US Cap
Lost IS Budget 62%
+$3.2k
Applied
Monthly Impact
$0/ mo
Next Gen of Marketing

Let AI Run Your Ads