With generative AI taking the world by storm and people finding value in having search, chat, answers, and creation capabilities all in one experience, Microsoft has confirmed that it has already begun flashing advertisements to some users, providing sponsored responses to its AI chatbot tool.
Announcing the same, the tech giant in a company blog post mentioned, “We’re also exploring placing ads in the chat experience to share the ad revenue with partners whose content contributed to the chat response.”
Bing Chat now has Ads!— Deedy (@debarghya_das) March 29, 2023
It's going to be fascinating to see how the unit economics of Ads in language models will unfold and affect search advertising.
“Since we announced the new Bing and Edge, the vision of moving beyond Search to create your copilot for the Web is landing broadly in the market. People are finding value in having search, chat, answers, and creation capabilities all in one experience,” the blog post read.
As per the tech company, the internet works because of an important ecosystem which starts with publishers creating great content which drives traffic and interest by people to consume that content, and then ultimately advertisers that want to reach people in a high quality and targeted environment.
“For the most part this dynamic has worked well as publishers get paid for their content through advertising which enables people to access the content for free,” it emphasised.
Furthermore, Microsoft also went on to point out that as of now, the company wants to drive more traffic to publishers in the new world of search.
“It is a top goal for us, and we measure success in part by how much traffic we are sending from the new Bing/Edge. Second, we want to increase revenue for publishers. We seek to do this by both driving more traffic to them through new features like chat and answers and by also pioneering the future of advertising in these new mediums,” the blog post read.
The company in its blog post also mentioned that the early progress is ‘encouraging’ and that based on Microsoft’s data from the preview, the company is driving more traffic from all types of users.
“We have brought more people to Bing/Edge for new scenarios like chat and we are seeing increased usage. Then, we have uniquely implemented ways to drive traffic to publishers including citations within the body of the chat answers that are linked to sources as well as citations below the chat results to ‘learn more’ with links to additional sources,” the blog post stated.
Moreover, the blog post also mentioned that in addition to building the preview experience, the tech giant is also exploring additional capabilities for publishers including more than 7,500 Microsoft Start partner brands and is already in talks with some of its partners to begin exploring ideas and to get feedback on how it can continue to distribute content in a way that is meaningful in traffic and revenue for its partners.
As part of the same, Microsoft announced that it has begun placing a rich caption of Microsoft Start licensed content besides the chat answer helping to drive more user engagement with the content on Microsoft Start wherein the company shares the ad revenue with its Microsoft Start partners.
Notably, as per media reports, Microsoft had already been in talks with ad agencies since February to devise a plan to make money from its revamped Bing search engine powered by Generative AI as the tech company seeks to compete against Google's dominance.