TL;DR Summary of Microsoft Advertising’s Upcoming Bidding Strategy Changes
Optimixed’s Overview: Streamlining Microsoft Advertising’s Bidding Strategies for Enhanced Campaign Management
Key Changes to Bidding Strategies
Microsoft Advertising announced a significant update effective August 4, 2025, where Target CPA (Cost Per Acquisition) and Target ROAS (Return On Ad Spend) will no longer exist as separate bidding strategies. Instead, these will be merged as optional target goals within the Maximize Conversions and Maximize Conversion Value bidding strategies respectively.
What This Means for Advertisers
- Existing Campaigns: Campaigns currently using Target CPA or Target ROAS will continue to run uninterrupted without any required changes.
- New Campaigns: Advertisers must select Maximize Conversions or Maximize Conversion Value bidding strategies and can optionally set target CPA or ROAS goals within these frameworks.
- Automation and API Updates: Updates via API, Microsoft Advertising Editor, or bulk actions will automatically convert legacy bidding strategies to the new system, preserving existing targets to ensure smooth campaign optimization.
Benefits and Additional Details
This update is designed to reduce confusion around automated bidding by consolidating options without changing how campaigns perform. Microsoft confirms no functional changes are being made, and no manual intervention is necessary from advertisers. Furthermore, portfolio bid strategies and certain platforms like SA360 remain unaffected, ensuring continuity across campaign management tools.