Microsoft Advertising Drops Max CPC: What This Bold Move Means for Your Campaigns Revealed!

Microsoft Advertising will stop allowing advertisers to set Max CPC limits on new campaigns using several standalone automated bidding strategies starting Oct. 1, as the platform pushes advertisers toward conversion-based targets and other automated bidding controls.

Existing campaigns with Max CPC limits won’t immediately lose them, while portfolio bid strategies and several other bidding strategies will retain the option.

Why we care. This removes another manual control from Microsoft’s automated bidding strategies. Advertisers that use Max CPC as a safeguard against unexpectedly expensive clicks will have less direct control when creating certain new campaigns and will instead need to rely more heavily on budgets and conversion-based targets.

Whether that produces better results will depend on the quality of an advertiser’s conversion data, the targets they set and how effectively Microsoft’s bidding system responds to those signals.

What’s changing. Starting Oct. 1st, advertisers creating new campaigns using standalone Maximize Conversions, Maximize Conversion Value and Maximize Clicks bidding strategies will no longer be able to add a Max CPC.

Existing campaigns created before the deadline will retain their Max CPC settings. Microsoft Advertising Product Liaison Navah Hopkins also confirmed that Target Impression Share, eCPC and portfolio bidding strategies will continue to support Max CPC controls.

Why Microsoft is making the change. Microsoft says Max CPC limits can interfere with automated bidding by overriding an advertiser’s stated performance goals and potentially creating spend pacing irregularities.

The company says advertisers using conversion-based bidding with target CPA (tCPA) and target ROAS (tROAS) tend to have an easier time achieving their goals than advertisers relying on legacy controls such as Max CPC.

Instead of CPC caps, Microsoft wants advertisers to communicate their objectives through controls more closely tied to business outcomes, including budgets, tCPA, tROAS, conversion value rules and seasonality adjustments.

What happens to existing campaigns. There’s no immediate migration for campaigns already using Max CPC. Campaigns created before Oct. 1 will continue to retain the bidding control.

That creates an important distinction between existing and newly created campaigns: advertisers won’t necessarily lose Max CPC across their accounts on Oct. 1, but their ability to use it when building certain new campaigns will disappear.

Microsoft says further updates about the future of Max CPC will be provided later.

Get ahead of the change. Hopkins is encouraging advertisers to use optimization experiments to test removing Max CPC from existing campaigns before the deadline.

Doing so could give advertisers an indication of how campaigns perform when automated bidding has greater freedom, before the option disappears from newly created standalone campaigns.

That may be particularly relevant heading into the holiday season, when advertisers could otherwise encounter the new restriction while launching or restructuring campaigns.

Targets become the primary lever. Microsoft is encouraging advertisers to think of tCPA and tROAS as their primary volume and value levers, rather than trying to control automated bidding through individual CPC limits.

Hopkins also noted that Microsoft Advertising can allow campaigns to outperform their tCPA or tROAS targets regardless of whether they’re limited by budget. Where appropriate, Microsoft recommends using conversion value rules to provide the bidding algorithm with additional information about which conversions are more valuable to the business.

Bottom line. Microsoft Advertising is making automated bidding more target-driven by phasing Max CPC out of new standalone Maximize Conversions, Maximize Conversion Value and Maximize Clicks campaigns from Oct. 1 — while, for now, preserving the control for existing campaigns and portfolio strategies.

Dig deeper. Updates to Max CPC for new campaigns