Analyst Sees Microsoft Bing Search Outpacing Google Search Revenue Within 3 Years

Microsoft’s development of its own version of Google’s Performance Max platform, as well as rebranding the PromoteIQ retail media platform and Xandr ad tech into a suite of applications under the Microsoft Advertising banner, has prompted the analyst firm New Street Research to update its Microsoft ad model.

New Street Research estimates Microsoft Search will outgrow Google search revenue during the next three years, but only gain an incremental 60 basis points of market share by 2025. Basis points remove some of the ambiguity when talking about percentage moves or revenue or stock. 

Estimates by the research firm were partially based on a redacted internal Microsoft report released as part of the Federal Trade Communications (FTC) investigation into Microsoft’s Activision Blizzard acquisition.

Based on the data, New Street Research estimates Bing search growing at more than 16%, Other ad revenue growing at more than 11%, LinkedIn Marketing Solutions at more than 8%, and Other S&N ad revenue at a compounded annual growth rate at more than 8% between 2022 and 2025 CAGRs.

New Street Research estimates Bing reaching $10 billion in revenue, 40% of total Microsoft Advertising, by 2025.

Microsoft Performance Max opened for beta, the company announced during a presentation this week. Key features rolled into Microsoft Performance Max include Responsive Search Ads, Product Ads, Automated Bidding, Audience Signals, Predictive Targeting, Dynamic Search Ads, and many more.

“Microsoft recently rebranded PromoteIQ to Microsoft Retail Media and Xandr’s suite of ad tech offerings to Microsoft Monetize, Microsoft Invest and Microsoft Curate,” analyst wrote in the report. “The changes are part of MSFT’s larger effort to unify its search, display, native, retail media, video and Connected TV advertising offerings.”

Microsoft Store Ads also expanded internationally, along with Premium Search Ads in the Microsoft Store and Bing search results, the company said.

Premium Search Ads will become available beyond the Store on Bing search engine results pages, which provides advertisers significantly more reach with their app ads.

The research report also noted how the integration of artificial intelligence (AI) into responsive search ads (RSA), asset creation, and Audience Ads predictive targeting will support the New Street Research’s model


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