Microsoft is exploring ways to incorporate conversational AI into its advertising platform, according to Kya Sainsbury-Carter, corporate vice president of Microsoft advertising. This development was revealed during a keynote interview at SMX Advanced, where the potential impact of conversational AI on search marketing was discussed. Bing Chat, Microsoft’s conversational AI tool, aims to address common issues faced with traditional search and deliver improved search results and answers to complex queries.
The launch of the new Bing in February aimed to overcome the limitations of traditional search engines, which often fail to provide relevant information. To achieve this, Microsoft combined the power of large language models with its own search index, resulting in current, cited, and conversational search results. Since its launch, Bing Chat has already facilitated over half a billion conversations, with more than 70% positive feedback on the answers it provides. This conversational AI tool has also demonstrated higher click-through rates and increased conversions compared to traditional search.
Microsoft remains committed to integrating chat AI across its advertising platform. By leveraging the capabilities of Bing Chat, Microsoft aims to boost internal efficiency and provide better user experiences. The company is exploring new opportunities to enhance user engagement, which is expected to lead to improved conversions. Conversational AI also signals a shift from traditional keyword targeting to a more topic-centric approach. Through Bing Chat, advertisers can expect to create ads that better align with user conversations and drive better returns on investment (ROI).
One notable feature of Bing Chat is its visual ads capability. These ads can be served in line with conversations, providing a more immersive and engaging ad experience. Microsoft is prioritizing the development of visual ads and plans to extend this feature to other verticals beyond hotels, such as travel and real estate. However, Microsoft emphasizes that traditional search is not being replaced and is instead complemented by the integration of conversational AI and visual ads.
Small businesses can also benefit from conversational AI, as users are providing more detailed queries, allowing bots to better understand user intent and provide more comprehensive responses. Bing maps are recommended for local businesses looking to improve their search engine results page (SERP) rankings. Additionally, Microsoft has introduced a chat API for news publishers, enabling them to implement chatbot technology on their websites and monetize their services through relevant ads.
Safety and privacy concerns surrounding AI technology have been addressed by Microsoft, which has worked closely with AI experts and followed responsible AI principles to ensure a secure and ethical implementation of Bing Chat. Microsoft continues to learn from real-world experiences and testing to enhance the platform further.
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