How to Advertise in Microsoft Copilot: A Complete Guide to Copilot Ads
09/08/2026
Marketing Services
A practical 2026 guide to how Microsoft Copilot Ads work, who's eligible, and what advertisers need to prepare for conversational and agentic commerce.
Microsoft Copilot is changing how people search, compare products and make purchasing decisions.
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What Are Microsoft Copilot Ads (And Who Can Use Them)?
Instead of entering a short query into a search engine, users can explain what they need in detail, ask follow-up questions and compare several options within one conversation.
Microsoft Advertising can serve relevant ads inside these Copilot experiences.
However, advertisers do not generally create a separate “Copilot Ads” campaign. Eligible Microsoft Advertising campaigns can automatically become eligible to appear within Copilot responses using the text, images and product information already provided by the advertiser.
This makes advertising in Microsoft Copilot different from advertising on ChatGPT, which now has its own dedicated OpenAI Ads Manager.
In this guide, we explain how Microsoft Copilot Ads work, how to become eligible, which campaigns and assets matter and how to prepare for conversational advertising and agentic commerce.
What Are Microsoft Copilot Ads?
Microsoft Copilot Ads are paid placements displayed within eligible Microsoft Copilot responses.
Copilot can use conversational AI to help people:
- Find information
- Research products
- Compare alternatives
- Evaluate features
- Plan purchases
- Discover relevant businesses
- Move from a question toward a transaction
When Microsoft identifies a relevant advertising opportunity, it can use assets from eligible Microsoft Advertising campaigns to display an advertisement inside the Copilot experience.
These placements may include:
- Text
- Images
- Product information
- Shopping results
- Links to advertiser websites
- Other conversational ad formats
Microsoft states that ads in Copilot are automatically created from existing campaign assets and that eligible campaigns and ad types are automatically opted into serving within Copilot. However, eligibility does not guarantee that an ad will be displayed. Microsoft’s official Copilot Ads documentation.
Can You Advertise in Microsoft Copilot?
Yes.
Businesses can advertise in Microsoft Copilot through Microsoft Advertising.
In most cases, there is no separate Copilot Ads Manager or standalone campaign type that advertisers must activate. Microsoft uses eligible campaigns from the broader Microsoft Advertising ecosystem.
The general process is:
- Create or access a Microsoft Advertising account.
- Build an eligible campaign.
- Add strong text, image and product assets.
- Configure targeting, budget and conversion tracking.
- Keep campaigns active and policy-compliant.
- Allow Microsoft to match eligible ads with relevant Copilot conversations.
- Monitor available reporting and overall campaign performance.
Advertisers currently cannot guarantee that a specific ad will appear inside a particular Copilot conversation.
Microsoft decides whether and when to display an eligible advertisement based on factors such as relevance, campaign eligibility, available inventory and the user’s interaction.
Ads in Copilot vs. Copilot in Microsoft Advertising
Microsoft uses the word “Copilot” for several related products. Two concepts are particularly easy to confuse.
Ads in Microsoft Copilot
These are paid advertisements shown to people using Microsoft Copilot.
The user may be researching a product, comparing options or asking for help making a decision. Microsoft can show an eligible advertisement within the conversational experience.
Copilot in Microsoft Advertising
This is an AI-powered assistant available to advertisers inside the Microsoft Advertising platform.
It can help marketers:
- Navigate the advertising interface
- Answer account questions
- Generate advertising assets
- Create ads
- Troubleshoot campaign issues
- Analyze performance
- Receive campaign recommendations
Microsoft explicitly distinguishes this advertising assistant from ads delivered inside Microsoft Copilot. Microsoft explains the capabilities of Copilot in its advertising platform.
The distinction is simple:
- Ads in Copilot help businesses reach customers.
- Copilot in Microsoft Advertising helps marketers manage advertising.
How Do Microsoft Copilot Ads Work?
Copilot Ads use Microsoft’s existing advertising infrastructure to connect eligible advertisers with relevant conversational experiences.
A traditional search might be:
best laptop for video editing
A Copilot conversation could provide more detail:
I need a lightweight Windows laptop for editing short-form 4K video while travelling. I want at least 32GB of RAM, strong battery life and a budget below $2,500.
That conversation communicates:
- Product category
- Operating-system preference
- Intended use
- Technical requirements
- Travel considerations
- Price range
- Stage of the buying journey
Microsoft can use this context to determine whether an advertisement is useful and which eligible product or advertiser is relevant.
Conversational context gives the platform more information than an individual keyword, but the advertiser does not receive a transcript of the user’s private Copilot conversation.
Where Do Ads Appear in Copilot?
Microsoft Advertising can display advertisements in varying formats within Copilot responses.
The specific appearance can depend on:
- The Copilot experience
- Device
- User’s question
- Available campaign assets
- Product category
- Advertiser eligibility
- Geographic availability
- Current Microsoft testing and rollout
Microsoft has experimented with formats designed to feel more natural within a conversation.
For example, Microsoft has discussed an “ad voice” experience in which Copilot explains how the sponsored section relates to the conversation before presenting the advertisement. Microsoft says these placements can consider the broader context of a session rather than only the most recent prompt. Microsoft’s explanation of conversational advertising formats.
Because these formats continue to evolve, advertisers should expect the appearance, inventory and reporting of Copilot Ads to change.
Do You Need to Create a Separate Copilot Campaign?
Generally, no.
Microsoft currently says that eligible Microsoft Advertising campaigns and ad types are automatically opted in to serving within Copilot.
This means there is not necessarily a “Copilot Ads” checkbox or separate campaign-building workflow.
Instead, advertisers should improve the campaigns and assets that Microsoft may use:
- Responsive Search Ads
- Shopping campaigns
- Performance Max campaigns
- Product feeds
- Audience campaigns
- Images
- Headlines
- Descriptions
- Landing pages
- Conversion tracking
The exact campaign and format eligibility can change, so advertisers should consult their Microsoft Advertising account and current Microsoft documentation.
Can You Opt Out of Copilot Ads?
Microsoft's current documentation says eligible campaign and ad types are automatically opted into serving in Copilot and that advertisers cannot opt out of Copilot delivery separately.
However, there is no guarantee that an eligible ad will appear.
This makes campaign quality and brand controls especially important. Advertisers should ensure every active asset accurately represents the brand because eligible assets may be used across Microsoft's expanding network of AI experiences.
If a business does not want a specific message or image used, that asset should not remain active within an eligible campaign.
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How to Set Up Campaigns That Are Eligible for Copilot
How to Advertise in Microsoft Copilot
Although there is no completely separate campaign flow, businesses can take practical steps to become eligible and improve their chances of relevant delivery.
Step 1: Create a Microsoft Advertising Account
Begin by creating or accessing a Microsoft Advertising account.
You will generally need:
- Business information
- Website
- Billing details
- Geographic information
- Campaign settings
- Conversion tracking
- Advertising assets
Businesses already running Microsoft Search or Shopping campaigns may not need to create anything new. Their current eligible campaigns can potentially serve within Copilot.
Google Ads advertisers can also explore Microsoft’s import features to bring existing campaigns into Microsoft Advertising. Imported campaigns should still be reviewed carefully instead of being left as an unattended copy.
Microsoft and Google have different audiences, inventory, automation and optimization behaviour.
Step 2: Select the Right Campaign Type
Microsoft does not identify Copilot as one universal campaign type.
The most appropriate campaign structure depends on the advertiser’s objective.
Search campaigns
Search campaigns can help businesses reach customers demonstrating active intent through Microsoft’s search ecosystem.
They are suitable for:
- Professional services
- Software
- Local services
- Lead generation
- Education
- Travel
- Considered purchases
Strong Search campaigns provide Microsoft with headlines, descriptions, landing pages and intent signals that may help determine eligibility across conversational experiences.
Shopping campaigns
Shopping campaigns are important for retailers because they provide structured product information.
Product feeds may include:
- Product title
- Description
- Price
- Availability
- Image
- Brand
- Product category
- Landing-page URL
- Shipping information
- Product identifiers
Detailed and accurate product data can help Copilot identify appropriate products during comparison and shopping conversations.
Performance Max
Microsoft Performance Max campaigns use automation to serve ads across eligible Microsoft inventory.
They can be useful when a business has:
- Reliable conversion tracking
- Strong creative assets
- Sufficient campaign data
- Clear objectives
- Accurate audience and product information
Automation should not be treated as a substitute for campaign strategy. Microsoft can optimize only with the information and assets the advertiser supplies.
Audience campaigns
Microsoft Audience Ads can reach users across Microsoft-owned and partner properties using responsive creative.
These campaigns may support broader discovery and awareness objectives, although advertisers should confirm current Copilot eligibility within Microsoft’s latest platform guidance.
Step 3: Add High-Quality Campaign Assets
Microsoft says ads in Copilot can be automatically created from existing text and image assets.
This means asset quality directly affects how the brand may appear in conversational AI.
Provide a complete range of:
- Clear headlines
- Informative descriptions
- High-quality images
- Accurate logos
- Product information
- Relevant landing pages
- Calls to action
- Brand-safe creative variations
Avoid relying on one generic message across every service or product.
A vague headline such as:
Build a Better Future
does not explain what the business offers.
A stronger headline might be:
Shopify Website Design for Established Consumer Brands
The second version gives Microsoft and the user more useful information.
Step 4: Improve Your Product Feed
Retailers should treat their Microsoft Merchant Center catalogue as essential advertising infrastructure.
A user may ask Copilot:
Find a stainless steel tongue cleaner under $20 that ships to Vancouver and is made by an established oral-care company.
To identify relevant options, Microsoft may need accurate information about:
- Product material
- Price
- Currency
- Availability
- Shipping destination
- Product category
- Brand
- Images
- Reviews
- Product details
If the product feed uses a generic title such as “TC-1000,” Microsoft has limited information.
A more useful product title would be:
Stainless Steel Tongue Cleaner – Reusable Oral-Care Tool
Product information should be written for both conventional shopping systems and conversational discovery.
Step 5: Use Specific Landing Pages
Every advertisement should lead to a page that directly supports its message.
Avoid sending all campaigns to the homepage.
If the advertisement promotes:
- A particular product, link to that product page.
- A collection, link to the relevant collection.
- A service, link to the service page.
- A location, link to the location-specific page.
- A software trial, link to a dedicated trial page.
A strong landing page should quickly answer:
- What is being offered?
- Who is it for?
- Why should the user consider it?
- How much does it cost?
- What proof supports the claims?
- What should the user do next?
The transition from Copilot conversation to advertisement to landing page should feel coherent.
Step 6: Configure Targeting Carefully
Copilot Ads inherit their eligibility from the broader Microsoft Advertising campaign.
Review settings such as:
- Country
- Region
- City or local targeting
- Language
- Device
- Audience
- Ad schedule
- Campaign dates
- Exclusions
- Product availability
Do not advertise products or services in regions where the business cannot fulfil the offer.
For example, a Canadian retailer should confirm that:
- Prices display in the correct currency
- Products can be shipped to the targeted province
- Duties or restrictions are clear
- The landing page reflects Canadian availability
- Tracking and checkout work correctly
Want your brand ready for Copilot's conversational shoppers? Keep reading!
If you need a partner who connects paid media, product feeds, and conversion tracking into one strategy, contact us for a free custom quote.
Tracking, Compliance, Cost and Copilot Checkout
Step 7: Set Up Conversion Tracking
Use Microsoft’s Universal Event Tracking, or UET, to measure actions taken after an ad interaction.
Potential conversion actions include:
- Purchases
- Lead submissions
- Calls
- Account creation
- Free-trial registrations
- Downloads
- Add-to-cart actions
- Appointment bookings
- Qualified website visits
Without reliable conversion tracking, Microsoft has less information for optimization, and the advertiser cannot determine whether traffic produces business value.
Where possible, also use:
- Consistent UTM parameters
- Analytics events
- CRM attribution
- Call tracking
- Revenue tracking
- Offline conversion imports
- Lead-quality reporting
Conversational customer journeys may involve several interactions before conversion, so last-click attribution will not always capture the complete influence of Copilot.
Step 8: Confirm Policy Compliance
Copilot Ads remain subject to Microsoft Advertising policies.
Campaign assets should be:
- Accurate
- Clear
- Professional
- Relevant
- Legally compliant
- Consistent with the landing page
- Free of deceptive claims
- Appropriate for the target market
Microsoft’s policies can vary by product category and jurisdiction. Regulated industries such as healthcare, finance, gambling, alcohol, political advertising and adult products may face additional restrictions.
Policy compliance applies to:
- Headlines
- Descriptions
- Images
- Product feeds
- Offers
- Pricing
- Landing pages
- Business identity
Step 9: Monitor Microsoft Advertising Performance
Because Copilot delivery is connected to Microsoft Advertising, begin by monitoring normal campaign performance.
Review:
- Impressions
- Clicks
- Click-through rate
- Cost
- Average cost per click
- Conversions
- Conversion rate
- Cost per acquisition
- Revenue
- Return on ad spend
- Search terms
- Product performance
- Audience performance
- Geographic performance
Availability of placement-specific Copilot reporting may differ by campaign type, account, market and product rollout.
Advertisers should avoid assuming that every Microsoft Advertising impression came from Copilot. Use the most detailed reporting Microsoft makes available and monitor official platform updates as measurement develops.
What Do Microsoft Copilot Ads Cost?
Microsoft does not publish one universal price for advertising in Copilot.
Costs depend on the underlying Microsoft Advertising campaign and factors such as:
- Campaign type
- Bidding strategy
- Industry
- Competition
- Geography
- Audience
- Product
- Conversion objective
- Ad relevance
- Available inventory
Because Copilot Ads generally use existing Microsoft Advertising campaigns, advertisers manage bids and budgets through the Microsoft Advertising platform.
The better question is not “What is the fixed cost of a Copilot ad?”
It is:
What cost per qualified lead, sale or customer can this campaign generate across Microsoft’s eligible inventory?
Advertisers should evaluate business outcomes rather than CPC alone.
How Are Copilot Ads Targeted?
Microsoft does not provide advertisers with private Copilot conversation transcripts.
Instead, Microsoft determines ad relevance using its own systems and available signals, which can include:
- Current conversational context
- Search intent
- Campaign information
- Keywords
- Product feeds
- Ad assets
- Geographic settings
- Audience signals
- Advertiser eligibility
- Product availability
Conversational advertising creates the possibility of matching based on a fuller expression of the user’s need.
However, advertisers should not assume they can manually target personal or sensitive conversation details. Delivery remains governed by Microsoft’s systems, privacy controls and advertising policies.
Brand Agents, Copilot vs. ChatGPT Ads, and Is It Worth It?
What Are Microsoft Brand Agents?
Brand Agents are designed to bring an AI-powered conversational experience to a merchant's own website.
Instead of relying only on a static product catalogue, a customer can ask questions about:
Brand Agents and Copilot Ads address different stages of the customer journey:
Together, they illustrate Microsoft's broader move toward agentic commerce.
Copilot Ads vs. ChatGPT Ads
Microsoft Copilot AdsChatGPT AdsPurchased through Microsoft AdvertisingPurchased through OpenAI Ads ManagerEligible campaigns can be automatically opted inAdvertisers create dedicated ChatGPT campaignsUses existing Microsoft campaign assetsUses campaigns, ad groups, context hints and adsConnected to Microsoft's search and commerce ecosystemNative to the ChatGPT experienceNo separate opt-out for eligible campaign deliveryAdvertisers directly control ChatGPT campaignsMature advertising infrastructureNewer self-serve advertising betaConnected to Copilot Checkout and Microsoft commerceSupports conversational ads and product-feed campaigns
A business may eventually use both platforms.
ChatGPT Ads provide direct access to ChatGPT conversations, while Microsoft Copilot Ads build on an established paid-search and commerce ecosystem.
Copilot Advertising vs. Organic Copilot Visibility
Paying for Microsoft Advertising does not guarantee that Copilot will mention the business organically.
Paid and organic visibility remain separate.
Paid Copilot visibility
Comes through eligible Microsoft Advertising campaigns and sponsored placements.
Organic Copilot visibility
May be influenced by:
A complete Copilot visibility strategy should consider both paid advertising and organic Generative Engine Optimization.
Is Microsoft Copilot Advertising Worth It?
Copilot advertising may be worth testing if:
It may be less effective when:
Microsoft has reported that conversational ad experiences can generate stronger engagement than traditional search journeys in some internal analyses. These results should not be treated as a universal benchmark for every advertiser. Performance depends on the category, campaign and customer journey.
Frequently Asked Questions
Can you advertise in Microsoft Copilot?
Yes. Eligible Microsoft Advertising campaigns can serve advertisements within Microsoft Copilot experiences.
How do I create a Copilot ad?
Advertisers generally create eligible campaigns in Microsoft Advertising. Microsoft can use the campaign's existing text, image and product assets to generate placements inside Copilot.
Is there a separate Copilot Ads Manager?
No separate self-serve Copilot Ads Manager is generally required. Ads in Copilot are connected to Microsoft Advertising.
Are Microsoft Advertising campaigns automatically eligible for Copilot?
Microsoft states that eligible campaign and ad types are automatically opted in to serving within Copilot. Eligibility does not guarantee delivery.
Can I opt out of ads in Copilot?
Microsoft's current documentation says advertisers cannot separately opt eligible campaigns out of Copilot delivery.
Can advertisers read Copilot conversations?
Microsoft does not give advertisers private transcripts of users' Copilot conversations. Microsoft determines relevance using its systems and available advertising signals.
What is Copilot in Microsoft Advertising?
Copilot in Microsoft Advertising is an AI assistant that helps advertisers create assets, answer questions, troubleshoot problems and analyze campaigns. It is different from ads displayed to users inside Microsoft Copilot.
How much do Copilot Ads cost?
There is no single published price for Copilot Ads. Costs depend on the underlying Microsoft Advertising campaign, bidding strategy, competition, geography and performance.
Can shopping products appear in Copilot?
Yes, eligible products can appear in Copilot experiences. Accurate product feeds, pricing, availability and images are important for discovery.
What is Copilot Checkout?
Copilot Checkout is Microsoft's conversational commerce experience designed to help eligible users complete purchases within Copilot while the merchant remains the merchant of record.
Are Copilot Ads available in Canada?
Microsoft Advertising is available to Canadian advertisers, but individual Copilot formats, inventory and commerce capabilities may vary by market and rollout.
Are Copilot Ads better than Google Ads?
Not universally. Google offers larger search scale, while Microsoft can provide access to different audiences, Copilot experiences and commerce opportunities. Businesses should test both based on customer acquisition cost and revenue.
Final Thoughts
Advertising in Microsoft Copilot gives businesses a way to appear during detailed research, comparison and purchasing conversations.
The immediate opportunity does not require abandoning established paid-search practices. It requires strengthening them.
Advertisers should improve:
The brands most prepared for Copilot will be those that provide Microsoft with accurate information, useful creative and a clear path from discovery to conversion.
At The Branded Agency, we combine paid-media management, brand strategy, creative development and conversion optimization to help businesses prepare for both traditional search and conversational advertising.
Contact The Branded Agency to discuss whether Microsoft Copilot Ads should be part of your paid-media strategy.
Quincy Samycia
As entrepreneurs, they’ve built and scaled their own ventures from zero to millions. They’ve been in the trenches, navigating the chaos of high-growth phases, making the hard calls, and learning firsthand what actually moves the needle. That’s what makes us different—we don’t just “consult,” we know what it takes because we’ve done it ourselves.
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