Google Ads vs Microsoft Ads: Which Platform Is Right for Your Business?

The digital ad space is just evolving, and I would say it is in overdrive. Digital advertising has become one of the most powerful tools for business growth. But with so many platforms to choose from, one question keeps coming up: Should you invest in Google Ads or Microsoft Ads? Both are major players in the PPC world, but they work differently, and your results can vary depending on which one you choose.

Being an advanced Performance Marketing Company, Eta Solutions has helped businesses of all sizes run paid campaigns on both platforms. We’ve seen what works, what doesn’t, and where the real ROI comes from. That’s why we put this blog across: to give you a clear, side-by-side comparison that helps you make the smartest choice for your business goals.

Both Google Ads and Microsoft Ads have evolved in the last few years. With the rise of AI tools, smarter bidding systems, and improved audience targeting, the dynamics have changed. In fact, the global PPC industry is expected to surpass $150 billion by the end of 2025. That means the competition is rising and so is the cost of making the wrong move.

So, if you’re planning to grow your business through paid ads, this guide will show you what you really need to know before choosing your platform.

What is Google Ads?

When it comes to pay-per-click advertising, Google Ads leads the market. It enables companies to place advertisements on partner websites, YouTube, and Google Search. With more than 8.5 billion daily searches, Google offers unparalleled targeting and reach.

Learn the Google Ads Features:

• Extensive audience targeting with the help of demographics, interests and behaviors.
• Smart bidding strategies powered by AI.
• Integration with Google Analytics for in-depth insights
• Wide range of ad formats that include search, display, video, and shopping ads.
• Location-based targeting for local businesses.
• Retargeting tools to re-engage past visitors.

Google Ads for business can scale from small daily budgets to massive enterprise-level campaigns. It makes it versatile for every business size.

Dashboard of Google Ads

What is Microsoft Ads?

It was formerly known as Bing Ads. Microsoft Ads operates on the Bing, Yahoo, and AOL networks and captures a niche but valuable audience. With a 7.2% market share in the US search engine space, Microsoft Ads is an underutilized gem for many advertisers.

See the Features of Microsoft Ads:

• Lower competition and CPC compared to Google Ads.
• Strong LinkedIn targeting integration.
• Import functionality for easy campaign replication from Google Ads.
• More visibility among professionals and decision-makers.
• Microsoft Shopping Campaigns for e-commerce.
• AI-powered recommendations and performance insights.

If you are looking to catch business leaders’ attention, Microsoft is the ultimate solution. Microsoft Ads for business helps you talk straight to them, who are often missed by bigger ad campaigns.

Dashboard of Microsoft Ads

Google Ads vs Microsoft Ads: How They Stack Up in 2025

Let’s break down both platforms by what really matters for your business:

Many advertisers report that Microsoft Ads users tend to spend 36% more per transaction than Google users. Especially in financial services, education, and professional tools.

Learn How to Set Up Your First Google Ads Campaign

Let us take you through a step-by-step guide.

1. You must first create an account with Google Ads and configure your billing information.
2. Select whether to run a search, display, shopping, video, or app campaign.
3. Determine your target audience’s location, age, hobbies, and habits.
4. Decide on your bidding strategy and budget.
5. There are 3 types: manual CPC, maximize clicks, or target ROAS.
6. Create convincing ad copy with high-intent keywords.
7. Launch your campaign and track performance in Google Analytics.
8. Optimize weekly based on performance. This task is not just to set and forget. You need to overlook this from time to time.

The Pros and Cons of Google Ads and Microsoft Ads for Small Businesses

Google Ads Pros:

• Massive audience reach
• AI-driven automation for better conversions
• More ad format options
• In-depth reporting tools

Google Ads Cons:

• High competition and expensive CPC
• Requires continuous optimization
• Over-saturation in popular niches

Microsoft Ads Pros:

• Less competition, lower CPC
• Better B2B targeting with LinkedIn integration
• Easier to manage with Google Ads import tool
• Highly engaged older demographic

Microsoft Ads Cons:

• Smaller audience reach
• Less advanced automation tools
• Slightly limited ad inventory in some verticals

Comparison of Targeting Strategies in Google Ads vs Microsoft Ads

Google Ads: 

It is an ideal option for broad and intent-based targeting. Best for businesses relying on consumer behavior data.

Microsoft Ads: 

Microsoft Ads offers better B2B targeting due to LinkedIn Audience Network integration, allowing advertisers to target users based on job title, company, and industry.

Insider Strategy: One powerful trick in Microsoft Ads for business is layering job titles with remarketing lists. This feature is almost impossible to replicate precisely in Google Ads.

Understand Cost-Per-Click in Google Ads vs Microsoft Ads

Google Ads CPC is higher because of fierce competition, particularly in sectors like e-commerce, finance, and law.

Microsoft Ads CPC is a better option for companies that are aiming to reach professionals. It is a low-budget substitute because it is frequently 30–50% lower.

Because fewer competitors are placing aggressive bids, you can frequently rank higher in Microsoft Ads with lower bids compared to Google Ads. 

Google Ads vs Microsoft Ads: Which One Turns into Better ROI?

ROI depends on the industry and the audience. Google Ads excels in high-intent consumer searches, while Microsoft Ads delivers better results for B2B businesses. According to industry data:

• Google Ads’ average ROI is 200%. Let’s say that if you spend $1, you generate $2 in revenue.
• Microsoft Ads sees higher engagement from senior professionals and corporate users.

For example, a SaaS company that wants to target CTOs can see a 42% lower CPA on Microsoft Ads by using LinkedIn job-title targeting. This thing is never possible on Google Ads.

How to Maximize Your PPC Budget: Google Ads vs Microsoft Ads

• For high-intent B2C: Prioritize Google Ads for reach and conversions.
• For cost-conscious B2B: Use Microsoft Ads for better CPC and professional targeting.
• Test both platforms: Run A/B tests to see which drives better cost-per-acquisition for your industry.
• Use remarketing across both: Google excels at this, but Microsoft allows precise audience overlays for stronger re-engagement.
• Set realistic ROAS goals: Use Google Ads ROI and Microsoft Ads ROI benchmarks to guide your planning.

Final Take

There’s no universal answer when it comes to choose between Google Ads and Microsoft Ads. It really comes down to your audience, your goals, and how smartly you manage your campaigns. Google Ads is great when you want massive reach and strong visibility. Microsoft Ads, on the other hand, gives you an edge when you’re targeting professionals and looking to make your budget go further.

Top brands don’t just stick to one platform. Their strategies combine both to get the best results. It was never about spending more cash, it’s about being smarter with what you have.

Still if you are confused about where to start, don’t worry! At our Performance Marketing Company, we work side by side with businesses to figure out what’s working, what’s missing the mark, and where your biggest growth opportunities are hiding. In the end, Eta Marketing Solutions is built to help businesses get the maximum outcome for what they spend. 

Let’s talk. No pressure, just practical advice on how to make your advertising budget work harder for you.