At Optimized Marketing, we excel at finding the most efficient ways to help our clients succeed, especially in today’s evolving digital advertising landscape. With competition rising, many businesses face increasing costs on platforms like Google Ads, which can impact profitability. That’s where Microsoft Ads comes in—a powerful but often underrated advertising platform that can help businesses achieve the same (or better) results with lower costs.
This case study shows how we used Microsoft Ads for one of our clients from March to August 2024, achieving great results while also managing the high costs associated with Google Ads.
What is Microsoft Ads?
Microsoft Ads (formerly Bing Ads) is an online advertising platform similar to Google Ads, but it places ads on Microsoft-owned platforms such as Bing, Yahoo, and AOL search engines, as well as some partner websites.
Because fewer companies use Microsoft Ads compared to Google Ads, the cost per click (CPC) tends to be lower. This makes Microsoft Ads a great choice for companies looking to spend less while still reaching potential customers.
The Challenge:
Google Ads has traditionally been the top choice for generating traffic and leads, but the costs are rising—especially in competitive industries. In some cases, businesses spend more to acquire a customer than they make in profit from a sale, which can hurt their long-term success.
Our goal for this client: to test whether Microsoft Ads could provide a more cost-effective solution while still delivering high-quality leads and sales.
The Approach:
Instead of relying solely on Google Ads, we crafted a balanced strategy that included both Google Ads and Microsoft Ads. This way, we could reduce overall advertising costs without sacrificing results. Here’s what we found:
| Metric | Google Ads | Microsoft Ads |
|---|---|---|
| Total Spend ($) | $100,399 | $17,275 |
| Total Revenue ($) | $1,167,023 | $138,092 |
| ROAS (x) | 11.63x | 7.99x (14.65x in July, 11.04x in June) |
| Average Customer Purchase ($) | $4,024.22 | $4,061.53 |
| Average CPC ($) | $7.85 | $2.00 |
| Household Leads | 1,008 | 133 |
| Cost/Lead | $99.60 | $19.90 |
Strategic Insights:
- Cost-Effectiveness at Scale: Microsoft Ads showed a much lower CPC at just $2.00, compared to $7.85 on Google Ads. This means that Bing Ads are 2-3 times cheaper than Google Ads.
- ROAS (Return on Advertising Spend): ROAS tells us how effective an advertising campaign is by showing how much money is earned for every dollar spent on ads. Although Google Ads had a higher average ROAS, Microsoft Ads had standout months, with a ROAS of 11.04x in June and 14.65x in July. This means that during these periods, Microsoft Ads generated significantly higher returns, demonstrating that with the right timing and strategy, it can outperform even Google Ads.
- Average Transaction Value: Interestingly, the average transaction value (how much each sale was worth) was slightly higher with Microsoft Ads with an average customer purchase of $4,061.53 compared to $4,024.22 on Google Ads. This suggests that while Google Ads drives higher volumes, Microsoft Ads attracts customers who spend more.
At Optimized Marketing, we know that managing rising advertising costs is crucial for business success. By incorporating Microsoft Ads into our strategy for this client, we were able to keep costs low while still delivering strong results.
Most agencies may overlook Microsoft Ads or lack the experience to run effective campaigns on the platform, but Optimized Marketing has the expertise to tap into its full potential.
Will investing in Microsoft Ads help my local service business?
It very well could.
There’s no one-size-fits-all solution when it comes to digital marketing, especially for businesses spread across different regions.
A strong marketing strategy often relies on a mix of different channels. While Microsoft Ads can offer cost-effective lead generation, your overall plan might also benefit from Google Search Ads, SEO, social media platforms like Facebook and Instagram, video marketing on YouTube, or even more traditional options like TV and radio. But that doesn’t mean you need to invest in all of them at once.
The goal is to identify which channels are delivering the 80/20 results for your business. If you’re curious about what will drive the most leads and revenue for your unique market, reach out to us.
We’ll work with you to build a tailored strategy that pinpoints exactly which marketing efforts will give you the best return on investment. That way, you can confidently focus on the channels that truly matter for your business.
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