Microsoft is Bringing Ads to its AI-Powered Bing Search

Microsoft is selling advertising in responses given by its Bing chat search engine, highlighting a potential revenue model for an artificial intelligence tool the company says has attracted 100 million average daily users.

“We recently met with some of our partners to begin exploring ideas and to get feedback on how we can continue to distribute content in a way that is meaningful in traffic and revenue for our partners,” Yusuf Mehdi, Microsoft chief marketing officer, said Wednesday in a blog post. “These conversations are early days but we're hearing positive feedback as we look for opportunities to maximize these new experiences for the entire ecosystem.”

Microsoft's new Bing builds on the traditional internet search experience with new features like chatbots that answer questions. Microsoft can sell sponsorships embedded in chat responses, similar to sponsored search content that appears on search engines like Alphabet's Google.

For example, asking Bing, “How do I buy a house in Oakland, CA?” produces a response that may include a tiny advertising link. Tapping that link will take you to the advertiser's site.

A Microsoft representative declined to comment further on the company's plans.

Digital ad spending is expected to grow more than 10 percent this year to $627 billion according to analyst firm Insider Intelligence. © Bloomberg LP

March 30, 2023