Microsoft Ads: Your First Campaign in 2026

Are you looking to expand your reach beyond Google? Microsoft Advertising offers a powerful platform to connect with potential customers. This tutorial will guide you through the essentials of Microsoft Advertising, helping you launch your first campaign and drive meaningful results. Is it time to tap into a different market?

Key Takeaways

  • You’ll learn how to create a Microsoft Advertising account and navigate the updated 2026 interface.
  • This guide will walk you through setting up your first search campaign, including keyword research and ad creation.
  • You’ll understand how to track your campaign performance and make data-driven adjustments to improve your results.
  • We’ll cover advanced targeting options like audience targeting and location targeting, unique to Microsoft Advertising.

Step 1: Setting Up Your Microsoft Advertising Account

Creating Your Account

First, head over to the Microsoft Advertising website. Click on the “Sign up now” button. You’ll need a Microsoft account (Outlook, Hotmail, or Xbox Live account). If you don’t have one, you can create one during the signup process. Make sure to use a business email address if you’re advertising for a company. I’ve found that using a personal email can sometimes flag the account for verification later.

Navigating the Interface (2026)

Once you’re logged in, you’ll see the main dashboard. The left-hand navigation menu is your control center. You’ll find options like “Campaigns,” “Audiences,” “Tools,” and “Reporting.” The top navigation bar provides quick access to account settings, help, and notifications. The biggest change in the 2026 UI is the consolidated “Assets” library, which now houses all your ad extensions, images, and videos in one place.

Setting Up Your Billing Information

Go to “Tools” in the left navigation, then select “Billing & Payments”. You’ll need to enter your payment information (credit card or PayPal). Choose your billing country carefully; it can be difficult to change later. You can also set up automatic payments or manual payments. Pro tip: Start with manual payments to control your spending and avoid surprises.

Microsoft Ads: Campaign Performance (Projected 2026)
Average Conversion Rate

4.2%

Mobile Ad CTR

6.8%

Desktop Ad CTR

5.1%

Cost Per Acquisition (CPA)

$25

Return on Ad Spend (ROAS)

3.5x

Step 2: Creating Your First Search Campaign

Choosing Your Campaign Goal

Click on “Campaigns” in the left navigation and then click the “+ Create” button. You’ll be prompted to choose your campaign goal. Options include “Website traffic,” “Sales,” “Leads,” “App installs,” and “Brand awareness.” For your first campaign, I recommend choosing “Website traffic” or “Leads.” Let’s say you pick “Leads.” Next, you’ll select your campaign type. Choose “Search ads” to reach customers actively searching for your products or services on Bing and the Microsoft Audience Network.

Defining Your Target Audience and Location

Next, you’ll define your target audience. You can target by location, age, gender, and other demographics. For location targeting, you can enter specific cities, states, or even postal codes. If you’re a local business in Atlanta, for example, you might target the metro area, including areas like Buckhead and Midtown. You can also exclude specific locations. Common mistake: Forgetting to exclude locations where you don’t offer service. For example, if you only serve Fulton County, exclude neighboring counties like Cobb or Gwinnett.

Keyword Research

Keywords are the foundation of your search campaign. Use the “Keyword Planner” tool (found under “Tools” in the left navigation) to find relevant keywords. Enter your product or service (e.g., “personal injury lawyer Atlanta”) and the Keyword Planner will generate a list of related keywords with search volume and cost estimates. Focus on long-tail keywords (phrases with three or more words) as they tend to be less competitive and more targeted. For example, “best car accident lawyer in Sandy Springs” is a long-tail keyword.

Ad Group Creation

Organize your keywords into ad groups. Each ad group should focus on a specific theme or product category. For example, if you’re advertising for a law firm, you might have ad groups for “car accidents,” “truck accidents,” and “slip and fall accidents.” Within each ad group, you’ll add your keywords and create your ads.

Writing Compelling Ads

Your ads should be clear, concise, and relevant to your keywords. Each ad consists of a headline, description, and display URL. In 2026, Microsoft Advertising allows for up to five headlines and four descriptions per ad. Use all the available space to highlight your unique selling points and include a strong call to action (e.g., “Call Now,” “Get a Free Consultation,” “Visit Our Website”). Pro tip: Use keyword insertion to dynamically insert the user’s search query into your ad. This can increase relevance and click-through rates.

Step 3: Setting Your Budget and Bids

Choosing Your Budget

Set a daily budget for your campaign. This is the average amount you’re willing to spend each day. Start with a conservative budget (e.g., $25-$50) and increase it as you see results. Microsoft Advertising also offers shared budgets, which allow you to allocate a single budget across multiple campaigns. We often use shared budgets for clients with multiple product lines.

Understanding Bidding Strategies

Microsoft Advertising offers various bidding strategies, including “Manual CPC,” “Enhanced CPC,” “Maximize Clicks,” and “Target CPA.” For your first campaign, I recommend starting with “Enhanced CPC.” This allows you to manually set your bids for each keyword, but Microsoft Advertising will automatically adjust your bids to maximize conversions. You can also set bid adjustments for different devices, locations, and times of day. For example, you might increase your bids for mobile devices if you see that mobile users are more likely to convert.

Launching Your Campaign

Once you’ve set your budget and bids, review your campaign settings and click “Save.” Your campaign will now enter the review process. Microsoft Advertising will review your ads and keywords to ensure they comply with their advertising policies. This usually takes a few hours. Once approved, your ads will start running.

Step 4: Tracking and Optimizing Your Campaign

Monitoring Your Performance

Regularly monitor your campaign performance in the Microsoft Advertising interface. Pay attention to metrics like impressions, clicks, click-through rate (CTR), conversions, and cost per conversion. Use the reporting tools to identify which keywords and ads are performing well and which ones are not. A recent IAB report found that data-driven optimization can improve campaign ROI by up to 30%.

Making Adjustments

Based on your performance data, make adjustments to your campaign. Pause underperforming keywords, add new keywords, and refine your ad copy. You can also adjust your bids to improve your ad position and increase your click-through rate. Here’s what nobody tells you: Don’t be afraid to experiment. Test different ad variations and bidding strategies to see what works best for your business. We had a client last year who saw a 50% increase in conversions after switching from “Manual CPC” to “Target CPA.”

Utilizing Audience Targeting

Microsoft Advertising offers advanced audience targeting options. You can target customers based on their demographics, interests, and in-market segments. You can also create custom audiences based on your website visitors or customer lists. To access these, go to “Audiences” in the left navigation. Then, create your audience segments based on the available data. Consider using remarketing lists to target users who have previously visited your website but haven’t converted. We’ve found this particularly effective for e-commerce clients.

Leveraging Location Targeting

Refine your location targeting to focus on the most profitable areas. Use the “Location reports” to see how your campaign is performing in different locations. If you’re a business targeting Atlanta, you might find that your ads perform better in certain neighborhoods like Virginia-Highland or Inman Park. You can then adjust your bids to increase your visibility in those areas. This is especially useful for businesses with a physical storefront.

Mastering Microsoft Advertising takes time and effort, but the potential rewards are significant. By following these steps, you can create effective campaigns that drive traffic, generate leads, and increase sales. Don’t be afraid to experiment and learn from your results. With consistent optimization, you can unlock the full potential of Microsoft Advertising. For more on maximizing your ad spend, read about avoiding wasted ad spend.

What is the Microsoft Audience Network?

The Microsoft Audience Network is a network of websites and apps where your ads can be displayed. It includes sites like MSN, Outlook, and other partner sites. Ads are targeted based on user interests, demographics, and browsing behavior.

How is Microsoft Advertising different from Google Ads?

While both platforms offer similar features, Microsoft Advertising primarily targets users on Bing and the Microsoft Audience Network, while Google Ads targets users on Google and its partner sites. Microsoft Advertising often has lower competition and lower costs per click than Google Ads.

What are ad extensions and how do I use them?

Ad extensions are additional pieces of information that you can add to your ads, such as sitelinks, callouts, and location extensions. They can improve your ad’s visibility and click-through rate. You can manage ad extensions in the “Assets” library.

How do I track conversions in Microsoft Advertising?

You can track conversions by setting up conversion tracking in Microsoft Advertising. This involves adding a tracking code to your website or app. You can then track actions like form submissions, phone calls, and purchases.

What are some common mistakes to avoid in Microsoft Advertising?

Some common mistakes include using broad keywords, not tracking conversions, and neglecting to optimize your campaigns. Make sure to use targeted keywords, track your results, and regularly adjust your campaigns based on your performance data.

Now it’s your turn. Start small, test frequently, and relentlessly optimize. The insights you gain from Microsoft Advertising can significantly impact your overall marketing strategy, leading to more qualified leads and increased revenue. And if you want to learn more about proving your marketing ROI, check out our guide.

Andre Sinclair

Senior Marketing Director Certified Digital Marketing Professional (CDMP)

Andre Sinclair is a seasoned Marketing Strategist with over a decade of experience driving growth for both established brands and emerging startups. He currently serves as the Senior Marketing Director at Innovate Solutions Group, where he leads a team focused on innovative digital marketing campaigns. Prior to Innovate Solutions Group, Andre honed his skills at Global Reach Marketing, developing and implementing successful strategies across various industries. A notable achievement includes spearheading a campaign that resulted in a 300% increase in lead generation for a major client in the financial services sector. Andre is passionate about leveraging data-driven insights to optimize marketing performance and achieve measurable results.