As Google Targets AI Search Ads, It Could Learn a Lot From Bing

For years Paula Thompson, vice president of client strategy at the US digital ad agency Optimal, has been helping Plunge sell baths to soak in chilling water by buying ads on Google search and Microsoft Bing. The ads appear atop results for searches such as “ice bath” and invite users to “Buy our cold plunge today” or “Experience the cold plunge difference.” But as Microsoft put an AI spin on its search engine, the tub maker’s ads on Bing now invite users to “learn about the benefits of cold plunging” or “learn about the exclusive benefits of Plunge,” according to Thompson. Last month, Google confirmed that it would join their ranks and soon test ads in its AI Overviews search feature—prompting anxious ad buyers to study up on what’s been happening with Copilot. There is a lot at stake: Google parent Alphabet generated $74 billion in profits last year, and Microsoft $83 billion, with significant contributions from selling search ads. Kya Sainsbury-Carter, corporate vice president of Microsoft Advertising, told WIRED in an interview that ads “are meant to be highly relevant, and so that's probably something we want to take a look at.” But James Murray, senior product marketing manager for advertising, later added in an email that seeing ads for products not mentioned in a Copilot response is normal.