How does Bing Ads use conversion data to optimize ad rotation?

Bing Ads uses conversion data to optimize ad rotation by automatically adjusting how often each ad is shown based on its historical performance. The goal is to prioritize ads that perform best in terms of conversions, ensuring that higher-performing ads get more exposure and, ultimately, drive better results for the advertiser. Here's how this works:

1. Ad Rotation Strategies in Bing Ads
Bing Ads offers different ad rotation strategies to optimize the delivery of your ads. These strategies are designed to use conversion data to automatically prioritize the best-performing ads. There are two main rotation options:

Optimize for Conversions: This setting automatically rotates ads to show the best-performing ones, based on the conversion data. Ads that generate more conversions or have better conversion rates will be shown more frequently.

Rotate Evenly: This option ensures that all ads in the ad group are shown evenly, without giving preference to any specific ad. However, this option is less common when optimizing for conversions and ROI.

2. Using Conversion Data for Automatic Optimization
When you select the "Optimize for Conversions" option, Bing Ads uses historical conversion performance to determine which ads should be rotated more frequently. Ads that result in higher conversions (or better conversion rates) are prioritized in the rotation. The more relevant and effective an ad is at driving conversions, the more often it will be shown to your audience.

How it works:
Conversion Tracking: Bing Ads tracks conversions for each ad in the ad group.

Performance Metrics: Metrics like conversion rate, cost per conversion, and conversion volume are taken into account.

Ad Prioritization: Ads with the highest conversion performance will be shown more often, increasing their chances of generating further conversions.

3. Impact of Conversion Data on Ad Performance
As you accumulate more conversion data, Bing Ads continually refines its optimization process to show the most relevant ads to users. The ad copy, call-to-action (CTA), and targeting criteria will influence how ads perform in terms of driving conversions, and Bing Ads will learn over time which ads lead to the best outcomes.

Examples of optimization based on conversion data:
Higher Conversion Rates: If Ad A consistently has a higher conversion rate than Ad B, Bing Ads will prioritize Ad A, showing it more often to the target audience.

Lower Cost per Conversion: Ads that generate conversions at a lower cost will be favored in rotation to maximize ROI.

Ad Relevance: Bing Ads may also consider the relevance of an ad to the user's query, which ties into conversion performance. Ads with higher relevance (i.e., those that resonate with the target audience) are more likely to be shown.

4. Ad Rotation Adjustment Based on Device and Time of Day
In addition to conversion data, Bing Ads also accounts for device performance (mobile, desktop, tablet) and time-of-day performance in optimizing ad rotation. Ads that perform better on specific devices or during certain times of the day will be shown more often during those periods, ensuring maximum conversions based on contextual factors.

Example:
If an ad performs well on mobile devices, Bing Ads will prioritize showing that ad on mobile to maximize conversions.

If a particular ad performs best in the evening, Bing Ads will adjust the ad rotation to prioritize it during those hours.

5. Ad Testing and Iteration
Bing Ads also uses conversion data to help advertisers test and iterate on ad creatives. By running multiple variations of ads, you can assess which ones perform best, and the ad rotation algorithm will automatically favor the ads that lead to more conversions.

How it works:
A/B Testing: Advertisers can test different versions of their ad copy or CTAs.

Automatic Optimization: Bing Ads uses conversion data to automatically favor the more successful ad variations and display them more frequently.

6. Impact of Conversion Tracking Setup
To fully benefit from conversion data in optimizing ad rotation, it's crucial to set up conversion tracking correctly. You should be tracking relevant actions that represent success for your campaign, such as:

Purchases (for e-commerce ads)

Form submissions (for lead generation)

Sign-ups or registrations

Page visits (for content-based campaigns)

The quality and accuracy of the conversion data you provide will directly influence how Bing Ads optimizes ad rotation.

7. Ad Rotation Learning Phase
When you first launch a new campaign or ad group, Bing Ads will enter a learning phase where it gathers conversion data. During this time, it will experiment with different ad rotations, but over time, it will start to favor the ads that are driving the best results. The learning phase typically lasts for a few days to a week, depending on the volume of conversions.

Example:
In the first few days, Bing Ads will rotate the ads evenly or based on limited conversion data.

As data accumulates, the system will shift toward "Optimize for Conversions", prioritizing ads with better performance.

8. Manual Adjustments and Control
While Bing Ads can automate ad rotation based on conversion data, advertisers can still make manual adjustments to fine-tune the process. You can modify bid amounts, ad targeting, or create specific rules based on performance metrics.

Example:
If an ad with low conversion rates is not performing as well, you might decide to pause it manually to prevent it from showing too often.

Alternatively, you can increase the maximum bid for a high-conversion ad to ensure it's shown more often.

Key Takeaways:
Bing Ads uses conversion data to automatically optimize ad rotation, prioritizing ads that drive more conversions.

The "Optimize for Conversions" setting helps increase the exposure of high-performing ads, improving overall campaign results.

Conversion data also helps you test different ad variations, allowing for ongoing optimization and improvement.

The process adapts over time as more data is collected, adjusting ad rotation based on device, time of day, and geographic performance.