You’ve probably noticed the dip. Your cost-per-lead is creeping up, your conversion rate is slipping, and the ROI that used to be reliable is now… not so reliable.
If this sounds familiar, you’ve likely already checked the usual suspects: bids, budgets, and ad copy.
But when nothing seems broken, you start to wonder what the hell is really going on here.
Here’s the simple truth you might be missing: the problem isn’t necessarily your strategy or even your campaign creatives. It’s the fundamental shift in how the Microsoft Ads (Bing) platform now operates.
Across our client accounts, we’re seeing a consistent and telling pattern that points directly to the root cause: Broad and Phrase match keywords are underperforming, while Exact Match remains pretty much the only way to deliver consistent results.
This isn’t a fluke either. It’s a direct result of the platform’s evolution.
And it’s not just your imagination.
Recent 2025 PPC Benchmarks show that while Bing continues to offer a lower Cost-Per-Click than Google (averaging $1.54 vs. Google’s $2.85+), the “Efficiency Gap” is widening.
Notably, advertisers relying solely on automated match types have seen a 22% increase in CPAs year-over-year as Microsoft’s AI prioritizes broader reach over conversion precision.
Let’s explore why this is happening and, most importantly, how to fix it.
The Silent Shift in Paid Ads: Less Control, More AI
Microsoft Advertising (Bing) and Google Ads are in a race toward full AI automation. It’s a future where you don’t have to control any part of your advertising or setup, but launch with one button.
While it sounds nice, we’re not anywhere near there. Worse, this has led to two major changes impacting your performance:
- The Dilution of Keyword Match Types: What was once a precise tool is now a blunt instrument. As Microsoft Advertising follows Google’s lead, Broad Match has become broader, and Phrase Match now behaves like a modified broad. The platforms argue this captures more intent, but the reality is often a flood of irrelevant traffic. Data studies from Adalysis in late 2024 and 2025 reveal that Broad Match now accounts for nearly 34% of revenue but only 25% of total conversions.
- The Reduction of Manual Levers: The detailed control we once had is being replaced by automated bidding and campaign types. The platform’s message is clear: “Provide the data and trust the AI.”
In essence, your advertising budget is increasingly being used to train the platform’s complex algorithms. During this training period, results often suffer. This isn’t just a theory either, it’s a daily reality for advertisers who haven’t adapted their approach.
Bing Ads: The Perfect Storm for Poor Performance
Bing’s network, while valuable, has a smaller search volume than Google. This can exacerbate the problems with automated match types.
The algorithm, hungry for data, may cast too wide a net, matching your ads to searches that are tangentially related at best.
This creates the exact scenario you might be experiencing:
- Broad & Phrase Match: These have become the primary culprits for wasted spend. You see clicks from search queries that are irrelevant to your business, draining your budget without driving conversions.
- Exact Match: This remains your most reliable performer. By giving the AI less room for interpretation, Exact Match keywords protect your budget by targeting users with clear, high commercial intent.
This is why Exact Match remains the “gold standard” for ROI – especially for Microsoft Ads.
In the B2B sector specifically, Microsoft Bing Ads currently delivers a 253% ROI, the highest of any major platform but only when paired with high-intent keyword strategies. When left to Broad Match alone, that ROI often gets eaten by Bing’s expanding partner network (Yahoo, AOL, and DuckDuckGo).
You can probably see the issue here with going full Broad or Phrase Match.
How a Performance Marketing Agency Fights Back
At Acorn Digital, we believe in strategic oversight, not blind trust in AI. Our approach is designed to harness the power of automation while building guardrails to protect your ROI.
Our 3-step framework for managing Bing Ads in the age of AI is:
1. Fortify with an Exact Match Foundation
We start by building a core campaign structure around Exact Match keywords. This creates a stable base of conversions and positive ROI, providing the platform with the high-quality conversion data it desperately needs.
2. Implement Relentless Search Query Management
This is our primary defense against poorly performing automation. We conduct frequent and thorough analyses of the search terms report. Every irrelevant query is added to a comprehensive negative keyword list. This process actively “teaches” the algorithm what *not* to target, refining its focus over time.
3. Test Broad Match with Strict Guardrails
We don’t write off Broad Match entirely. Instead, we test it intelligently. Once we have a solid data foundation from Exact Match and a robust negative keyword list, we may launch controlled experiments with broad match, but only when paired with strict automated bidding strategies like Target ROAS or Maximize Conversions.
Just to be clear, we don’t ignore Microsoft’s AI entirely. We just point it in the right direction.
For example, Microsoft’s new Performance Max campaigns have shown an average 32% CPA reduction, but only after a core search foundation is established.
We use these tools as the “accelerant,” not the engine itself, and never overly rely on AI or automation when human expertise can lead the way.
Conclusions
If we can draw one conclusion from this, it would be:
Adapt your strategy, don’t abandon performance!
The trend toward automation is irreversible. Success now depends on a more sophisticated, proactive, and data-led management approach. You need a partner that acts as a skilled pilot for your ad spend, not a passenger watching the AI learn at your expense.
If you’re ready to stop funding the platform’s learning phase and start seeing real results again, we should talk.
Ready to transform your underperforming Bing Ads into a profit center?
Schedule Your Free 30-Minute Strategy Meeting Today!
