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Top Bing Ads Optimization Tactics for Lower CPC

If you want to reduce your Bing Ads (Microsoft Advertising) cost-per-click (CPC) while maximizing campaign performance, you need a combination of strategic targeting, careful account structure, and continual optimization. Many businesses turn to professional Bing Ads management services to implement these strategies efficiently and achieve measurable ROI. In this article, we’ll explore actionable tactics that professional advertisers use to lower CPC without sacrificing traffic quality, conversions, or ROI.

Bing Ads, rebranded as Microsoft Advertising, is often overlooked compared to Google Ads. However, its user base, which includes a high proportion of affluent and decision-making demographics, makes it extremely valuable. With the right optimization strategies, you can achieve lower CPCs, better click-through rates (CTR), and higher conversion efficiency.

Use Highly Relevant Keywords and Match Types

The foundation of any successful Bing Ads campaign is keyword strategy. Choosing the right keywords and match types can dramatically reduce wasted spend. Broad match keywords may capture more traffic but often lead to irrelevant clicks that drive up CPC. Instead, focus on:

  • Exact match keywords: Target users who are searching for very specific terms related to your product or service.

  • Phrase match keywords: Reach slightly broader queries without losing intent.

  • Negative keywords: Exclude searches that are unlikely to convert. For example, if you sell premium software, add negative keywords like “free” or “download” to avoid low-intent traffic.

A tightly focused keyword strategy not only reduces wasted impressions but also improves your Quality Score in Bing Ads, which directly lowers CPC.

Optimize Ad Copy for Maximum CTR

Bing Ads ranks ads using a combination of bid amount and Quality Score, which includes CTR, ad relevance, and landing page experience. One of the most effective ways to lower CPC is to increase your CTR, as a higher CTR signals to Bing that your ad is valuable and relevant.

Tactics for better ad copy:

  • Include keywords in your headlines: Users are more likely to click when they see the exact terms they searched for.

  • Highlight unique value propositions (UVPs): Promotions, free trials, or exclusive offers can improve CTR.

  • Use compelling calls-to-action (CTAs): Phrases like “Get Started Today,” “Claim Your Free Demo,” or “Learn More” encourage clicks from motivated users.

  • Test ad variations (A/B testing): Run multiple ad copies per ad group and rotate them to identify the highest-performing versions.

A strong CTR lowers CPC by signaling relevance to Bing’s auction algorithm. Even small percentage improvements in CTR can reduce costs substantially over large campaigns.

Leverage Bing Ads Audience Targeting

Bing Ads allows advertisers to layer audience targeting on top of keyword targeting. By targeting users based on demographics, device, location, and previous interactions, you can reduce wasted clicks and focus spend on high-value users.

Key audience strategies:

  • In-market audiences: Target users who are actively researching products or services in your category. These users are more likely to convert.

  • Remarketing lists: Focus on users who previously visited your website or engaged with your content. This can reduce CPC by targeting warmer leads.

  • Location and device targeting: Analyze historical data to identify which regions and devices produce the highest ROI, and allocate spend accordingly.

By narrowing your audience, you reduce competition for clicks that don’t convert, effectively lowering CPC while improving campaign efficiency.

Implement Ad Extensions

Bing Ads supports various ad extensions that make ads more prominent on search result pages, improve CTR, and indirectly reduce CPC. Extensions enhance your ad without additional cost per click but can influence Quality Score and ad rank.

Most effective extensions for CPC optimization:

  • Sitelink extensions: Direct users to specific pages like pricing, features, or contact forms.

  • Callout extensions: Highlight key benefits or offers, such as “24/7 Support” or “Free Shipping.”

  • Structured snippets: Showcase product categories, services, or other features to increase ad relevance.

  • Location and call extensions: Especially useful for local businesses, as they attract clicks from users with higher intent.

Using ad extensions can increase CTR and ad relevance, both of which help reduce CPC.

Refine Your Bidding Strategy

Choosing the right bidding strategy is critical for cost control. Bing Ads offers several automated and manual bidding options:

  • Manual CPC: Allows full control over individual keyword bids. Ideal for campaigns with a small number of high-value keywords.

  • Enhanced CPC (ECPC): Automatically adjusts manual bids to maximize conversions while staying close to your target CPC.

  • Maximize Conversions: Bing’s algorithm optimizes bids to drive the highest number of conversions within your budget.

  • Target ROAS (Return on Ad Spend): Bid based on the expected value of conversions rather than just clicks, which can indirectly lower CPC for profitable traffic.

A combination of manual bid adjustments and intelligent automation often yields the best CPC results. Monitor performance data daily to fine-tune bids based on historical CPC trends.

Optimize Landing Pages for Quality Score

A frequently overlooked tactic for lowering CPC is improving the landing page experience. Bing Ads evaluates landing page relevance, load speed, and user experience as part of its Quality Score. Higher Quality Scores result in lower CPC for the same ad positions.

Landing page optimization tips:

  • Ensure the page matches the ad copy and keyword intent.

  • Improve page load speed; slow pages negatively impact CPC and conversions.

  • Include clear CTAs and reduce friction in the conversion process.

  • Use mobile-friendly designs since a significant portion of Bing traffic comes from mobile devices.

Investing in landing page optimization not only lowers CPC but also improves conversion rates, giving better ROI overall.

Use Dayparting and Ad Scheduling

One of the most underutilized tactics for lowering CPC in Bing Ads is dayparting, also called ad scheduling. This strategy allows you to show ads only during times when your target audience is most likely to click and convert. By reducing impressions during low-performing periods, you minimize wasted spend and lower CPC.

How to implement effective dayparting:

  • Analyze historical campaign data to identify peak performance hours and days.

  • Allocate higher bids during high-converting periods to win competitive auctions efficiently.

  • Reduce or pause bids during low-conversion windows to avoid paying for clicks that rarely convert.

  • Combine with device and location targeting for even more granular control.

For example, if you notice that your ads convert best between 9 AM and 5 PM on weekdays, you can focus your spend on that window while lowering bids during off-hours. This ensures that every dollar spent contributes more effectively to conversions, which indirectly reduces CPC over time.

Conduct Competitor Analysis

Understanding what your competitors are doing in Bing Ads can provide actionable insights to lower CPC. Competitor research helps you identify high-performing keywords, ad copy strategies, and bidding approaches that you can adopt or improve upon.

Competitor analysis tactics:

  • Use Bing Ads Intelligence or Keyword Planner equivalents to discover competitor bidding trends and keyword overlap.

  • Monitor competitor ad copy and extensions to identify opportunities to differentiate your ads.

  • Analyze ad positioning vs. CPC to find gaps where you can bid efficiently and capture valuable traffic at lower costs.

  • Test competitor-targeted campaigns with exact match or phrase match keywords to capture intent-driven traffic at strategic bids.

Competitor intelligence allows you to optimize bids smartly and avoid overpaying for highly competitive terms, reducing CPC while maintaining visibility.

Segment Campaigns by Match Type and Intent

Creating separate campaigns or ad groups for different keyword match types and user intent helps in controlling CPC more effectively. When all keywords are lumped together, bids for high-performing terms can be inflated by low-performing keywords, increasing overall CPC.

Segmentation tactics:

  • Exact match campaigns: Focus on highly specific, high-converting keywords with controlled bids.

  • Phrase match campaigns: Capture slightly broader queries without diluting performance.

  • Broad match modifier campaigns: Test new keywords while maintaining intent control.

  • Segment by buyer intent: Separate informational queries from transactional or commercial ones. This ensures you bid appropriately for users closer to conversion.

Proper segmentation ensures bid precision and prevents overspending on clicks with low conversion potential, directly lowering CPC.

Optimize Device Bids

Device-level bid adjustments are crucial in Bing Ads since user behavior and conversion rates vary significantly across desktops, tablets, and mobile devices. By tailoring bids to the device performance, you can lower CPC and improve ROI.

Device optimization tips:

  • Analyze historical performance data for each device type.

  • Increase bids for devices that convert well, even if CPC is slightly higher.

  • Decrease bids for devices with low conversion rates or high CPC.

  • Combine with landing page optimization to ensure mobile-friendly experiences, reducing wasted mobile clicks.

Device-specific bidding ensures every click is valuable, allowing you to reduce CPC on low-performing devices while maximizing return on high-performing ones.

Leverage Bing Ads Scripts and Automation

Bing Ads provides scripting and automation capabilities that can save time and optimize campaigns continuously. Automated rules and scripts can adjust bids, pause underperforming ads, or redistribute budget in real-time, reducing CPC without constant manual oversight.

Examples of automation for CPC reduction:

  • Pause non-converting keywords or ads automatically after a defined period.

  • Adjust bids based on performance metrics, such as CPC or conversion rate thresholds.

  • Schedule budget redistribution to favor campaigns or ad groups with higher ROI.

  • Automate A/B testing rotation of ad copy to continuously identify high-CTR ads.

Automation reduces human error, prevents wasted spend, and ensures CPC stays optimized based on real-time performance data.

Improve Quality Score Through Continuous Testing

Bing Ads’ Quality Score is a critical determinant of CPC. A higher Quality Score lowers the amount you pay for each click because Bing rewards ads that are relevant and user-friendly. Continuous testing and optimization of keywords, ad copy, and landing pages are essential.

Quality Score optimization strategies:

  • Test different ad headlines and descriptions to improve CTR.

  • Align landing pages with ad messaging to enhance relevance.

  • Refine keyword groupings to ensure each ad group is tightly focused.

  • Monitor keyword-level Quality Scores and adjust bids strategically, favoring high-Quality Score keywords for cost efficiency.

Small improvements in Quality Score can lead to disproportionately large reductions in CPC, making this a high-impact optimization tactic.

Explore Bid Modifiers for Audience Segments

Bing Ads allows bid adjustments for specific audience segments, locations, and even time zones. Using bid modifiers strategically ensures you pay more for high-value clicks and less for low-value ones.

Practical applications:

  • Increase bids for remarketing lists and loyal customers.

  • Lower bids for audiences or locations with historically low conversion rates.

  • Combine with dayparting to bid more aggressively during profitable hours for specific segments.

Targeted bid modifiers allow precise cost control, improving CPC efficiency without sacrificing overall campaign performance.

Optimize for Long-Tail Keywords

Long-tail keywords are more specific search queries that typically have lower competition and cost-per-click. They may generate less traffic individually but often result in higher conversion rates due to strong intent.

Long-tail keyword strategy:

  • Identify highly specific keywords related to products, features, or pain points.

  • Use phrase match or exact match targeting to capture intent-driven traffic.

  • Monitor performance closely and expand profitable long-tail terms gradually.

  • Combine with ad copy and landing page optimization for maximum relevance.

Targeting long-tail keywords allows you to attract qualified leads at lower CPCs, improving both efficiency and ROI.

Monitor, Analyze, and Iterate Continuously

The most important factor in sustaining low CPC is continuous monitoring and iteration. Bing Ads is dynamic, and auction competition, audience behavior, and keyword performance constantly change.

Ongoing optimization practices:

  • Weekly or monthly performance reviews at campaign, ad group, and keyword levels.

  • Adjust bids, pause underperforming ads, and refine targeting based on data.

  • Conduct A/B tests for ad copy, landing pages, and extensions.

  • Track metrics such as CPC, CTR, Quality Score, conversion rate, and ROAS to guide optimization decisions.

Continuous data-driven optimization ensures your CPC remains low while maximizing traffic quality and conversions.

Conclusion

Lowering Bing Ads CPC requires a multi-faceted approach combining keyword strategy, ad copy optimization, audience targeting, bidding tactics, and ongoing testing. By implementing these 15 tactics—ranging from dayparting and long-tail keyword targeting to automation and Quality Score improvements—you can reduce costs, increase click relevance, and improve overall campaign ROI.

While Bing Ads may not have the same volume as Google Ads, it provides a cost-effective, high-intent audience. Businesses that consistently optimize campaigns using these strategies can achieve lower CPCs, higher conversions, and ultimately, better returns from their Microsoft Advertising investment.

Mastering these tactics takes time and data-driven experimentation, but the payoff is substantial: a leaner ad spend and more qualified leads hitting your funnel at a fraction of the cost. If you want to get expert help managing your Bing Ads campaigns and implementing these optimization strategies quickly, check out our professional Bing Ads management services.

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Marketing LTB is a full-service marketing agency offering over 50 specialized services across 100+ industries. Our seasoned team leverages data-driven strategies and a full-funnel approach to maximize your ROI and fuel business growth. 

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About the author, Bill Nash

Bill Nash is the CMO of Marketing LTB with over a decade of experience, he has driven growth for Fortune 500 companies and startups through data-driven campaigns and advanced marketing technologies. He has written over 400 pieces of content about marketing, covering topics like marketing tips, guides, AI in advertising, advanced PPC strategies, conversion optimization, and others.

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