Predictive targeting and audience expansion
Predictive targeting uses machine learning to identify high-converting audience segments beyond your existing keyword and audience parameters.
How Predictive Targeting discovers new audiences#
Predictive targeting uses deep neural networks to discover prospective customers who share behavioral, demographic, and search patterns with your proven conversion base.
As documented in Microsoft Predictive Solutions, 2026, the system analyzes converting search queries and landing page semantics to find relevant audience pockets outside manual targeting parameters.
Audience expansion levels and controls#
Audience expansion operates on a dynamic slider, allowing advertisers to choose between conservative expansion (tight lookalikes matching core converting signals) and broad reach as explained in Microsoft Audience Expansion Docs, 2026.
Pair predictive targeting with Target CPA bidding to ensure expanded impressions only serve when conversion probability meets cost goals.
Lookalike audience modeling on first-party data#
When seed Customer Match lists or high-volume remarketing pools are provided, predictive algorithms build rich lookalike profiles, identifying matching consumers across the Microsoft Audience Network.
When to enable or disable predictive expansion#
Enable predictive targeting on mature campaigns seeking incremental volume scale. Disable expansion on strict brand defense campaigns or niche B2B search ad groups requiring 100% deterministic keyword matching.
Consult our Microsoft Ads Hub for scaling frameworks.
Predictive targeting deployment framework#
The table below summarizes optimal deployment conditions for predictive audience expansion.
| Campaign Type | Expansion Setting | Recommended Guardrail |
|---|---|---|
| Audience Network Native | Enabled (Balanced) | Strict Target CPA bid ceiling |
| Scale E-Commerce Shopping | Enabled (Conservative) | Target ROAS threshold |
| Exact Match B2B Search | Disabled | 100% deterministic keyword match |
| Remarketing Recovery | Enabled (Lookalike Seed) | Exclude past 30-day purchasers |
Frequently asked questions#
What is Predictive Targeting on Microsoft Ads?
Predictive Targeting uses AI to automatically find new audiences who are likely to convert based on your current converting customer data and landing page content.
Can I disable Predictive Targeting on Microsoft Ads?
Yes, you can enable or disable predictive targeting at the ad group level under audience targeting settings.
Does Predictive Targeting increase my costs?
When paired with automated bidding strategies like Target CPA, predictive targeting only bids on auctions predicted to meet your efficiency targets.
What data does Microsoft use to build predictive audiences?
Microsoft analyzes your UET conversion history, landing page content, ad creative text, and first-party seed audience lists.
Is predictive targeting available on both Search and Audience networks?
Predictive targeting is primarily deployed across the Microsoft Audience Network and Performance Max, with algorithmic expansion signals informing search matching.
Read more on this topic#
The Microsoft Ads Hub
Free tools, campaign guides and live news for every Microsoft Ads format.
Open the hubKeyword match types and close variants on Microsoft Search
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Read the entryReady to scale incremental audience reach with AI?
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