Start now! Characteristics of companies that are compatible with the benefits of Microsoft advertising

A Microsoft ad that restarted its service in Japan in May 2022 . Focusing on BtoB and EC companies, attention is increasing as a new ad distribution destination.

We interviewed Mr. Yuichi Arizono and Mr. Nobukazu Kaneda of Microsoft Japan Co., Ltd. about the characteristics and strengths of Microsoft advertising , as well as their future prospects.

In addition, Mr. Kotaro Yamamoto, Mr. Taku Yasuda, and Mr. Kosuke Nomura of OPT Co., Ltd., which supports the operation of Microsoft advertising for many companies , talked about what kind of companies should work on Microsoft advertising .

Table of contents

  1. What is Microsoft advertising?
  2. Microsoft advertising strengths
  3. Which companies are best suited for Microsoft advertising?
  4. Outlook for Microsoft

What is Microsoft advertising?

ferret: What is behind the relaunch of
Microsoft advertising in the Japanese market?

Arizono:
Microsoft ads are ads that can be delivered to the web browser “Microsoft Edge” (hereafter Edge) and the search engine “Microsoft Bing” (hereafter Bing) .

In addition to the increase in the number of unique users of Edge in Japan , Bing’s market share in Japan reached 16.6%, which is sufficient for expanding the advertising business .

We believe that the number of users of Edge will grow further in the future.

Microsoft Japan Co., Ltd. Microsoft Advertising Regional Vice President Yuichi Arizono

* Quoted from materials provided by Microsoft Japan

Edge’s growing number of users

Arizono:
One of the reasons why the number of users of Edge is increasing is that it can be used conveniently depending on the usage environment and usage .

Edge is built on the same open-source browser codebase ” Chromium ” as Google Chrome. As such, Edge is an easy-to-use browser for users accustomed to working with Google Chrome.

Kaneda: Another reason for the growing market share is the high penetration rate of devices running Windows
in Japan , and Edge being installed as the default browser .

Since many of the terminals used in educational settings are Windows, there are many Edge users among young people aged 16 to 24 . Also, many male users over the age of 45 prefer to use Edge, which is set by default .

Available destinations for Microsoft ads

Arizono:
Microsoft Ads can deliver search-linked ads in text format on the Bing search results screen .

You can also distribute shopping ads that are displayed with product images to users who search for product names or product genre names .

In addition to search ads , there are also ads delivered to surfaces called Microsoft Audience Network , such as MSN, Microsoft Outlook, and Edge. Formats such as text , banner ads , and videos are available.

Microsoft advertising strengths

ferret: What are the strengths of Microsoft advertising compared to media such as
Google Ads and Yahoo! Ads ?

Wide variety of products and services and large amount of user data

Arizono: One of our strengths is that we can deliver content based on
a wealth of unique data .

In addition to Bing and Edge, Microsoft has developed a wide range of products and services, including the Windows operating system and the business software Microsoft 365, each of which has a certain size of users It is characterized by having first-party data
that is anonymous and considers privacy due to the fact that it is used by many customers .

Advertising is possible with relatively low CPC

Arizono: One of the strengths of Microsoft Ads
is the high conversion rate and low cost -per-click (CPC) due to the high accuracy of targeting through the use of first-party data.

There is also a view that the reason for the low CPC is that Microsoft advertising has not been in service for a long time and has low competition. However, depending on the keyword, many companies have already placed advertisements, and their CPC has remained relatively low .

BtoB and EC are particularly compatible

Nomura: If you are in an industry where internet advertising using
Google and Facebook is effective, then Microsoft advertising can also be expected to be effective.

Among them, industries with a high percentage of users using PCs are particularly compatible with Microsoft advertising . In addition, in the case of the BtoB industry , it is easier to eventually lead to business negotiations, and CPA tends to be cheaper.

Nomura: Due to the impact of the corona crisis, the number of “ workday consumers
” who use EC on their work PCs to make private purchases during their work hours has increased. Since it is possible to reach such users, Microsoft advertising is also compatible with EC business .

In addition, we believe that the human resources and financial industries are also compatible with Microsoft advertising .

Yasuda:
In industries where users take a long time to consider a product after learning about it , they have more opportunities to search for and consider services on their PCs while at work, and as a result, they are more likely to get high advertising effectiveness. For example, loan products in the financial industry are considered to be compatible with Microsoft ads because it takes a long time to consider which one to choose while looking at comparison sites on a PC .

In addition, products for companies with security environments where only Edge can be used as an internal rule are also compatible with Microsoft advertising . In some cases, such as banking and real estate, only Edge can be used. Products such as SaaS for B2B targeting those companies often use Microsoft advertising to increase user awareness, and the cost-effectiveness of advertising is also impressive.

As for other trends, products for high-income users , such as gold and platinum credit cards, are also receiving good responses in Microsoft ads . It has been found to have a high affinity with men over the age of 45 who use Edge.

Recommended for companies already using Google Ads and Facebook Ads

Nomura:
Microsoft Ads has an import function that allows you to transcribe the content of Google Ads and Facebook Ads . Therefore, Microsoft Ads is recommended even for businesses that are already using Google Ads or Facebook Ads .

Currently, only two companies , Google and Microsoft , provide Shopping Ads in Japan . Businesses already using Google Shopping ads can also expect results from Microsoft’s Shopping ads .

I want to work on it as an essential menu for advertising

Yamamoto:
Google Ads and Yahoo! Ads are highly competitive with many companies placing ads, so many companies are suffering from soaring unit prices. Compared to that, Microsoft advertising has only been a year since the service started, and there are still few companies that place ads, and as a medium that will grow in the future , I think it would be better to build a portfolio and incorporate it as an essential menu for advertising .

Microsoft Bing already accounts for just under 17% of the domestic search share , so if you don’t run Microsoft ads , you won’t be able to reach that user. In order to prevent such opportunity loss and maintain CPC , we recommend allocating about 10 % of current search ads to Microsoft ads and adjusting the ratio after observing reactions such as CPC and CPA.

▼You can also see examples in this document

What are the characteristics of Microsoft ads and the points for maximizing performance?

What are the characteristics of Microsoft ads and the points for maximizing performance?

Examples of industries supported by OPT are also introduced

Outlook for Microsoft

ferret:
Lastly, please tell us about Microsoft’s future prospects and strategies.

Microsoft's Future Prospects and Strategy

Incorporating the benefits of AI into every product

Arizono:
First of all, our basic policy is to incorporate the benefits of AI into all products and services. Edge and Bing already have an evolved version of ChatGPT by OpenAI integrated. AI is also incorporated into Microsoft 365 and Microsoft Azure, a cloud computing service.

Kaneda:
Over the past 25 years, search engines have evolved in terms of speed and accuracy, but the shape itself has not changed. However, in the last few months, ChatGPT has been added to enable interactive search in chat. I feel that this is a harbinger of big changes due to AI.

Expand your user base with a point program

Arizono: We will also focus on a point program called ” Microsoft Rewards ,”
where you can earn points when you search on Bing . Accumulated points can now be exchanged for gift cards such as Amazon and Apple.

Microsoft Rewards

In the future, we plan to expand cooperation with common point providers and expand the user base. With the advantage of accumulating points, the number of users using Bing search and Edge will increase, and the strategy is to further increase the volume of Microsoft advertising .

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