Microsoft’s AI Ad Plans Revealed Through New App Deal via @sejournal, @MattGSouthern

Microsoft Advertising has announced a new partnership with Baidu Global, the international division of Chinese tech company Baidu.

The partnership will enable Microsoft to bring sponsored content recommendations powered by artificial intelligence (AI) to Baidu’s mobile keyboard app, Baidu Global Keyboard.

This is accomplished by integrating Microsoft’s Chat Ads API into the Chat AI feature of Baidu Global Keyboard, allowing advertisers on Microsoft’s platform to reach keyboard app users.

Keyboard App Offers Valuable New Channel for Brands

According to Microsoft, integration with Baidu Global Keyboard allows brands and advertisers to engage younger demographics, mainly Gen Z users.

Additionally, because Baidu Global Keyboard customizes features based on the app environment a user is in, brands can reach users with relevant ads across multiple platforms. This context can drive increased purchase intent and conversion rates.

AI Could Enable More Personalized Experiences

Microsoft hinted at the potential for richer ad personalization and relevance for desired audiences.

While not confirmed, the AI powering the ad recommendations may look at full context, like message content, user interests, location, and time of day.

This could allow for ads tailored to a user’s needs. For example, the AI might detect a user messaging about dining spots and serve a relevant restaurant ad.

However, the specifics of the AI capabilities and contextual factors it can leverage still need to be confirmed. If the integration enables real-time ad adjustment based on usage context, personalized ad delivery would be an advancement.

Launch Planned For Early 2024 In Key Markets

Microsoft expects the integration to roll out later this year, with an official launch in early 2024. The partnership will launch in the U.S., Canada, the U.K., and Australia.

For advertisers, Microsoft noted that they can take advantage of the opportunity by ensuring their Microsoft Advertising campaigns are set up to target the entire network and have positive mobile bid adjustments in place.

Microsoft Looks To AI to Transform Advertising

In its announcement, Microsoft positioned the deal as part of its broader vision for AI in advertising.

The Baidu Global Keyboard integration is the latest move to bring more engaging, personalized AI-powered ad experiences to new platforms and audiences.

The company plans to evolve conversational ad products based on advertiser feedback.

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