Bid Strategies in Microsoft Advertising: Which One, When and What It Needs

This guide uses Microsoft Advertising Help only, mainly Let Microsoft Advertising manage your bids with bid strategies and Portfolio bid strategies, plus the pages linked where they are used. How budgets and bidding work in Google Ads is in our Google Ads budgets and bidding guide, and what happens to Google bid strategies when you import campaigns is in our Google Ads import guide.

The strategies at a glance

Microsoft groups its auto-bidding strategies by goal: Maximize conversions, Maximize conversion value, Target CPA and Target ROAS to generate conversions; Enhanced CPC and Maximize clicks to generate leads; Cost per completed view (CPCV) and Target impression share to drive awareness. The manual strategies are Cost per sale (CPS), Manual CPI and Manual CPM. Microsoft says that, whichever you use, it "will always respect your budget limit."

Every strategy works inside your campaign budget; how budgets, overspend, bid limits and billing work is covered in How much do Microsoft Ads cost?

One thing surprises people coming from Google Ads: Microsoft's page says manual bid strategies "are only available in Shopping, App, and Audience campaigns." A Search campaign's strategy list has no plain manual CPC. Enhanced CPC, where you still set ad group and keyword bids, is the closest to it.

Campaign types per strategy, from Microsoft's comparison table:

• Enhanced CPC: Audience, Search (including Vertical ads), Shopping.
• Maximize clicks: Search, Shopping.
• Maximize conversions: Search, Audience.
• Maximize conversion value: Search, Shopping search (not Microsoft Store ads).
• Target CPA: Search, Audience. Target ROAS: Search, Shopping.
• Target impression share: Search only.
• Manual CPM: Audience only. Manual CPI: App Ads only. CPCV: Premium Streaming only. CPS: Shopping.

Performance Max campaigns use Maximize conversions or Maximize conversion value, with an optional target; our Microsoft Performance Max guide covers how.

Target CPA and Target ROAS since August 2025

Microsoft's bid strategy page says: "Starting on August 4, 2025, to set up Target CPA (cost per acquisition) and Target ROAS (return on ad spend), use Maximize conversions with the Target CPA value and Maximize conversion value with the Target ROAS value." Stand-alone Target CPA and Target ROAS cannot be set up on new campaigns or on campaigns not already using them. Campaigns that already use them keep running, and portfolio strategies are not affected.

If you switch an existing campaign to Target CPA or Target ROAS through the API, Microsoft Advertising Editor or bulk actions, Microsoft converts it to Maximize conversions or Maximize conversion value. In practice, a target is now an optional field on the two "maximize" strategies.

Maximize conversions and Target CPA

Maximize conversions sets bids in real time "to get as many conversions as possible within your budget." Adding a target CPA asks Microsoft to keep the 30-day average cost per conversion near that figure; some conversions will cost more and some less. The target is set for the campaign, so ad groups and devices can show different CPAs.

What these need and how they behave:

• Conversion tracking: a UET tag with an active conversion goal, or offline conversions. Only goals with Include in "Conversions" ticked count. Microsoft's page Conversions versus all conversions says clearing that box takes a goal out of automated bidding; it then shows only under "All conversions". Our Microsoft Advertising basics guide covers UET.
• Microsoft recommends at least 30 conversions in the previous 30 days, a starting target based on your actual 30-day CPA, and changes to the target of 10-15% at a time.
• You cannot change keyword bids, so automated rules and third-party bid tools have no effect. You can set an optional maximum CPC at campaign level.
• Microsoft advises against these strategies if most conversions happen more than seven days after the click, or if you cannot upload offline conversions daily (ideally within two days of the conversion).

Maximize conversion value and Target ROAS

Maximize conversion value sets bids "to maximize total conversion value within your budget." An optional target ROAS aims for a 30-day average return on ad spend. Target ROAS needs conversion tracking with positive revenue recorded, so your conversion goals must pass a value. Microsoft again suggests letting the strategy collect at least 30 conversions before you judge it. A campaign on a shared budget can only use Target ROAS through a portfolio strategy.

Enhanced CPC

Microsoft calls Enhanced CPC "the best bid strategy to generate leads." In Search campaigns you set ad group and keyword bids, and Microsoft raises them for searches more likely to convert and lowers them for others, after your bid adjustments, while trying to keep the average CPC at or below your bid. It works with third-party bid tools, which it uses as the starting point. Microsoft "strongly" recommends using it with a UET tag and a conversion goal. In Audience campaigns you set the bid with your audience targeting, and Microsoft may show a suggested bid range from advertisers with similar targeting.

Maximize clicks

Maximize clicks gets "as many clicks as possible within your budget" and is available only for Search and Microsoft Shopping campaigns. It needs no conversion tracking, and you can set an optional maximum CPC. Keyword bids are locked, as with the conversion strategies. For Shopping, Microsoft advises keeping these campaigns at the highest priority and avoiding the same products in several Maximize clicks campaigns.

Target impression share

Target impression share is for Search campaigns only. You choose where the ads should appear and the share of impressions you want there, and Microsoft sets bids to reach it within the budget, with an optional maximum CPC. Microsoft lists it under driving awareness, not under conversion goals.

Manual CPM, Manual CPI, CPS and CPCV

• Manual CPM (Audience campaigns) is Microsoft's recommended strategy for awareness and reach. You set the price per 1,000 viewed impressions. Display and Native impressions count as viewed when more than 50% of the ad is in view for at least one second; video needs two seconds of play. It is also the strategy that lets you set a frequency limit per hour, day and week.
• Manual CPI (App Ads campaigns) sets the most you will pay per install.
• Cost per sale (Shopping) charges only for a sale within 24 hours of a product ad click. Microsoft says delivery can take up to 72 hours to start and recommends it only after 30-50 conversions. Spend can exceed the usual 200% daily cap, though monthly budgets hold.
• CPCV is the only strategy for Premium Streaming: you pay per completed view.

Our Microsoft Audience Network guide covers where Audience campaign ads run.

Portfolio bid strategies

A portfolio strategy shares one automated strategy across several campaigns with the same goal and balances bids between those doing better and worse. Per Microsoft's portfolio page:

• Supported: Maximize clicks (Search, Shopping), Maximize conversions (Search), Maximize conversion value (Search, Shopping search), Target CPA (Search), Target impression share (Search) and Target ROAS (Search, Shopping). Smart Shopping campaigns are not supported.
• You create them under Tools > Bids & budgets > Portfolio bid strategies. A portfolio's strategy type cannot be changed later; move a campaign to another portfolio instead.
• Each campaign should have its own budget, or share one only with campaigns in the same portfolio. Otherwise the portfolio shows "Misconfigured".
• Cross-account portfolios, created from a manager account, need accounts in the same currency. Not every account has them yet.
• A portfolio takes "a few weeks" to learn. Its status shows Active, Learning, Limited, Inactive or Misconfigured.

Switching strategies and the learning period

The bid strategy is a campaign setting (Campaigns > Settings > Bid strategy). Ad groups cannot pick another strategy; they either follow the campaign's or use a manual bid. Microsoft says bids start changing within two hours of turning a strategy on, but a strategy "needs to run for up to two weeks to build up enough data to bid optimally." Changing the strategy, budget or conversion settings, or adding and removing ad groups or keywords, in those weeks can make the period longer. For Maximize conversions and Target CPA, Microsoft suggests waiting two to four weeks after learning before judging results.

Bid adjustments, data exclusions and seasonality

Three controls work with automated bidding:

• Bid adjustments still count. Microsoft's bid adjustments page says automated strategies use them as signals. Most range from -90% to +900%, and device adjustments are changed in real time.
• Data exclusions keep bad conversion data, for example from a site outage or a broken tag, out of the bidding. They last up to 14 days (Microsoft recommends 7 or less), should not be used in the first 30 days of a strategy, and do not change reporting.
• Seasonality adjustments tell the bidding to expect a higher or lower conversion rate during a sale of 14 days or less. They apply only to campaigns with Target ROAS and Target CPA strategies, and bids return to normal afterwards.

Data exclusions and seasonality adjustments are under Tools > Bids & budgets > Advanced controls, and both can be scoped by campaign type, campaign and device.

The bid strategy report and statuses

Microsoft's bid strategy report opens from the Bid strategy type column in the campaign grid, from a portfolio's name, or from Account strategies in the Bids and budgets tool. It compares results with the average target the bidding actually used (a weighted average, not what you typed in), shows conversion delay, and has a bid landscape panel to estimate other targets. Statuses include Limited by budget, Limited by target (the CPA or ROAS target is too aggressive), Limited by inventory, Limited by max CPC and Limited: low data volume.

In the campaigns grid, "Limited by auto-bidding target" means Microsoft sees more volume if you raise a CPA target or lower a ROAS target. Microsoft's own FAQ says it "does not indicate any issues with the campaign optimization," and that changing the target is your call.

Our view

This part is our opinion, not Microsoft's. For a new lead-generation Search campaign we start on Enhanced CPC with UET and one primary conversion goal included in "Conversions", and move to Maximize conversions once the campaign is near Microsoft's 30-conversions-in-30-days mark. We add a target CPA only after a few weeks of real cost data, then change it in small steps. Secondary actions such as page views or clicks on a phone number stay in "All conversions" unless they are what the client pays for. And when a site change might break tracking, we set a data exclusion straight away rather than let the bidding learn from bad days.

Frequently asked questions

Can I still use manual CPC on Microsoft Ads Search campaigns?

Microsoft's bid strategy page lists manual strategies only for Shopping, App and Audience campaigns. For Search, Enhanced CPC is the closest option: you set keyword bids and Microsoft adjusts them per auction.

Can I still choose Target CPA in Microsoft Advertising?

Since August 4, 2025, new campaigns set a target CPA through Maximize conversions with an optional Target CPA value. Campaigns already on stand-alone Target CPA keep running, and portfolio strategies are not affected.

How many conversions do Microsoft's automated bid strategies need?

For Maximize conversions and Target CPA, Microsoft recommends at least 30 conversions in the previous 30 days, and at least 30 conversions before you evaluate the strategy.

How long is the learning period?

Bids start changing within two hours, but Microsoft says a strategy needs up to two weeks to bid optimally, longer if you change budgets, goals or structure in that time. Portfolio strategies need a few weeks.

Which Microsoft bid strategies work with portfolios?

Maximize clicks, Maximize conversions, Maximize conversion value, Target CPA, Target impression share and Target ROAS, mainly for Search, with some for Shopping. Smart Shopping campaigns are not supported.

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