Microsoft Ads vs Google Ads: Which Suits Your Australian Store?

Google Ads should be your first search channel. Microsoft Ads (formerly Bing Ads) is a sensible second channel once Google is tracked properly and profitable. Google gives you the volume. Microsoft often gives you cheaper clicks on a smaller pool of searches, and it runs on the same campaign logic, so you can import what already works. The two are partners in a search plan, not rivals for one budget.

This guide compares reach, costs, targeting and measurement for Australian eCommerce brands. It also covers the question many readers ask next: YouTube ads vs Facebook ads, and where each fits as you scale.

TL;DR

• Start with Google Ads for volume. About 19.2 million Australians use Google Search each month, according to the ACCC’s digital platforms inquiry.
• Add Microsoft Ads when Google campaigns are stable. Benchmarketing reports lower median CPC and cost per conversion on Microsoft, with lower volume.
• Judge both on cost per conversion and return on ad spend, not clicks.
• YouTube builds attention and demand. Facebook and Instagram are the faster place to test offers and creative. Most growing stores use both in different roles.
• Test one change at a time, with a fixed budget share and a clear read-out date.

Table of Contents

• Google Ads vs Microsoft Ads at a glance
• Audience and reach in Australia
• Costs and results: what the numbers say
• Features and targeting differences
• When to add Microsoft Ads to Google Ads
• YouTube ads vs Facebook ads
• A budget path as you scale
• Perspective
• Work through the channel mix with us
• FAQ
• Sources

Google Ads vs Microsoft Ads at a glance

The cost figures come from Benchmarketing’s comparison. It concludes that Microsoft’s lower costs and smaller volume make it a complement to Google, not a replacement. Treat these as reference points, not forecasts. Your own account data matters more than any average.

Audience and reach in Australia

Google’s reach is the main reason it comes first. The ACCC’s inquiry found roughly 19.2 million Australians use Google Search each month and 17.6 million watch YouTube. That puts search and video demand under one account.

Microsoft’s reach is narrower in search, but it has its own inventory. As of March 2025, Microsoft Advertising brought its Australian inventory in-house, covering MSN, Outlook, Microsoft Casual Games and Activision Blizzard King display, native and video placements. For a store, this means a second route to shoppers who may not see your Google ads, often on desktop during working hours.

A practical way to think about it:

• Google captures the broadest range of purchase searches, from “buy” intent to early research.
• Microsoft captures a smaller group that skews towards desktop and work-device browsing. Your own account will show whether that group buys your product.

Costs and results: what the numbers say

It is tempting to declare the cheaper platform the winner. Cost per click alone does not tell you that.

The Benchmarketing figures above show Microsoft with a lower CPC and a lower cost per conversion, but also a lower conversion rate. Cheaper clicks that convert less can still land at a similar or better cost per conversion, which is what that report shows. The reverse is also possible in your account.

Google itself frames the metric that matters. It defines cost per conversion as total cost divided by total conversions, and says return on investment is more meaningful than clicks or impressions because it reflects the effect on your bottom line.

An Australian reference point

For Google Search alone, the CM Beyer Australia benchmarks for 2026 give small and medium business averages of A$2.10 CPC, a 4.6% conversion rate and A$46 cost per conversion. Its eCommerce ROAS benchmark is 2.7x. Use these to sanity-check your Google account. They do not include Microsoft figures, so they cannot tell you which platform wins.

Why ROAS needs honest conversion values

Return on ad spend is only as good as the values you feed in. Google Ads lets you assign different values to each conversion, for example $25 for one purchase and $500 for another, so campaigns optimise towards revenue, not just order counts. Google also recommends accurate conversion values that reflect each conversion’s relative importance to the business.

A simple worked example shows why this matters. Suppose a store spends $1,000 on a channel and records 25 sales with an average order value of $100. Revenue is $2,500 and ROAS is 2.5x. If margin after product cost and shipping is 40%, that 2.5x returns $1,000 in gross profit, which only just covers the ad spend. Knowing your break-even ROAS before you add a channel is what turns a platform comparison into a decision. Our guide on how to measure Google Ads performance walks through the metrics, and lowering cost per acquisition covers what to change when the numbers disappoint.

Features and targeting differences

The two platforms share the same bones: campaigns, ad groups, keywords, match types and bidding strategies. That is why importing a Google campaign into Microsoft takes little time. The differences sit around the edges.

• Audience layers. Microsoft’s feature comparison lists LinkedIn Profile Targeting by industry, company and job function, available in Australia. If you sell to businesses, or a product bought by particular professions, that is a lever Google does not offer in the same form.
• Automation. Google’s automated campaign types, such as Performance Max, pull in Shopping, YouTube, Display and more from one set of assets. Our comparison of Performance Max and classic Google Ads explains where each fits.
• Placements. Microsoft’s own network reaches MSN, Outlook and gaming audiences, which supports upper-funnel formats alongside search.

When to add Microsoft Ads to Google Ads

Add Microsoft when the following are true:

1. Your Google account is tracking purchases reliably, with values attached.
2. Your Google campaigns are at or above break-even ROAS and you are hitting limits on volume or rising costs.
3. Your product suits a desktop-heavy, slightly older or professional audience, or you sell to businesses.
4. You can spare a small, fixed test budget. Many teams start with a modest share of search spend, then adjust on results.

Hold off when Google conversion tracking is patchy, when your feed has errors, or when your site converts poorly. A second channel only multiplies a leaky funnel. Fix the page first: our conversion benchmark analysis shows what to measure.

How to tell if the extra channel is working

1. Set the test. Import your best Google campaigns, keep the structure, and fix the budget and a review date.
2. Track separately. Use the same conversion definitions and values on both platforms so numbers compare fairly.
3. Compare on cost per conversion and ROAS after enough conversions to mean something, not after a few days of clicks.
4. Check incrementality. Look at total revenue and total cost per acquisition across both channels, not just platform-reported sales. If Google sales fall as Microsoft sales rise, you are moving conversions around, not adding them.
5. Scale or stop. Raise the budget only where blended cost per acquisition holds.

Attribution also changes the picture. In an Australian retail case study, data-driven attribution was associated with a 66% lift in conversions and a 1.6x increase in ROAS for Target. It is one company’s result, but it shows why how you credit conversions affects which channel looks best.

YouTube ads vs Facebook ads

Many readers comparing Google and Microsoft are also weighing video against social. They do different jobs, so the useful question is which one fits the stage your store is at.

How they differ

The reach on both is large. The ACCC reports that 17.6 million Australians watch YouTube monthly, and its inquiry into social media platforms found social media made up 27% ($2.6 billion) of Australian digital advertising spend.

What the Australian examples show

Video can move sales when the creative is built for the platform. A Campbell’s YouTube campaign in Australia was followed by a 55.6% increase in Simply Soup sales. In New Zealand, The Warehouse measured an average 82% lift in brand interest from YouTube campaigns, alongside 32% year-over-year growth in eCommerce sales. These are large-brand results from 2016, so use them as proof of the format’s potential, not as targets.

Which to choose

• Choose YouTube when your product needs explaining or demonstrating, when you want to build demand that later shows up in branded and Shopping searches, or when you already have strong video assets.
• Choose Facebook and Instagram when you need to test offers and creatives quickly, sell visually driven products, or retarget visitors with a catalogue. See our breakdown of Facebook ads cost in Australia.
• Use both when you scale. Video builds the audience, social retargets it, and search captures the buyers who go looking.

Measure beyond clicks. Video and social often influence a sale that a search ad then closes, so watch brand search volume, view-through conversions and blended acquisition cost, not click-through rate alone.

A budget path as you scale

There is no universal split, but the order below suits most Australian stores:

1. Foundation. Google Search and Shopping, with clean tracking and feed. Our Google Ads for eCommerce guide covers feeds, measurement and budgets, and Google Ads pricing in Australia helps you size the starting spend.
2. Creative testing. Add Meta ads to test offers and angles at pace.
3. Demand building. Add YouTube once you have creative worth scaling.
4. Search expansion. Add Microsoft Ads to capture incremental search demand at a lower cost per click.

Move to the next step only when the previous one holds your target return. Each addition should have its own budget, its own question and its own review date.

Perspective

Most stores we meet are not short of platforms. They are short of a plan that says which platform does which job.

Our view is simple: get Google right first, because it carries the volume and the data. Then add channels one at a time, each with a hypothesis, a budget and a read-out. Microsoft Ads is a good example. It is cheap to set up from a Google account, so there is no reason to ignore it once your numbers are healthy.

This is the work we do hands-on with eCommerce owners. Senior strategists build the structure, set up measurement around revenue and not clicks, and guide you through each test. That is how brands we work with have doubled revenue and launched into competitive markets.

Liza

Work through the channel mix with us

If you are deciding where the next dollar of ad spend should go, we can help you map it. Our Google advertising service covers Google search, Shopping and Performance Max, and our team also runs Meta, Pinterest and TikTok campaigns for eCommerce brands.

If you want a structured push, the 12 Week DOUBLE Your Revenue Challenge pairs strategy with hands-on mentoring from senior strategists. For a first conversation about your store, start at Moor Marketing.

FAQ

Is Microsoft Ads the same as Bing Ads?

Yes. Bing Ads was renamed Microsoft Advertising, and people still search both names. The platform covers Bing search plus Microsoft’s partner and owned properties. In Australia, that includes MSN and Outlook inventory managed in-house since March 2025.

Is Microsoft Ads cheaper than Google Ads?

Often per click. Benchmarketing reports a median CPC of $3.32 on Microsoft against $4.22 on Google, and a lower cost per conversion. Volume is smaller, so Microsoft tends to complement Google. Your own account data decides whether it is cheaper for your products.

Should I run Microsoft Ads and Google Ads together?

For most growing eCommerce stores, yes, once Google is profitable and tracked properly. Import your best campaigns, give them a fixed test budget and compare blended cost per acquisition across both. Keep going only where the combined result improves.

Are YouTube ads better than Facebook ads?

Neither is better across the board. YouTube suits storytelling and building demand among people who are watching or researching. Facebook and Instagram suit fast testing of offers and retargeting. Many stores use both, with search capturing the final purchase.

Sources

• ACCC, Digital platforms inquiry final report
• Benchmarketing, Microsoft Ads vs Google Ads
• Microsoft Advertising, Australian inventory in-house (March 2025)
• Microsoft Advertising and Google Ads feature comparison
• Google Ads Help, cost per conversion and conversion rate
• Google Ads Help, different values for each conversion
• Google Ads Help, conversion values in Performance Max
• CM Beyer, Marketing Benchmarks Australia 2026
• Think with Google, Target data-driven attribution case study
• ACCC, social media advertising spend
• Think with Google, Campbell’s YouTube campaign
• Think with Google, The Warehouse brand lift

Recommended

• Budget $1,000–$5,000: Google Ads Pricing in Australia 2026
• Google Performance Max VS Adwords
• Feed, Measurement, ML Budgets: Google Ads for Ecommerce That Scales
• Ecommerce Ad Structure: Get Advantage+ and PMax Learning in Two Weeks