What publishers and advertisers want from Microsoft’s new chat ads API

When it comes to the future of generative AI and advertising, Google I/O took center stage on Wednesday. However, it wasn’t the first tech giant this week to tease out new ways of making ad money from chatbots.

Microsoft was first out of the gate, showcasing a new chat API on Monday to help publishers, apps and other online services monetize ads within other companies’ chat experiences. The goal of the API is to let companies customize experiences while serving ads on chat platforms from Microsoft itself or other companies.

Bing has already inserted ads into Bing Chat. So far, the company is keeping ad load low while making sure “relevance is extremely high,” according to Kya Sainsbury-Carter, corporate vp of Microsoft Advertising, who now oversees the company’s $18 billion ads business. Some early categories it’s focusing on include travel, real estate, retail, health, tech, auto and telcos, which are seen as topics of consumer interest.

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