Microsoft Advertising is encouraging marketers to launch holiday campaigns earlier than ever, backed by new data showing that 90% of U.S. retail conversions occur outside the traditional Cyber 5 shopping period. The company’s latest seasonal insights reveal that modern shoppers are researching earlier, engaging longer, and favoring brands that align with both their values and price points (Microsoft Advertising Blog).
Microsoft Advertising Says Early Campaigns Win the Holiday Season
While Black Friday remains important, Microsoft emphasizes it is now only the midpoint of the holiday retail cycle. Starting campaigns in October helps advertisers capture early intent, build brand trust, and maintain momentum through the peak season. The data shows that 70% of shoppers plan to research ahead of the holidays, and overall shopping journeys have lengthened by nearly 10% year over year. So if you haven’t launched your campaigns yet, you’d better get started!
Launching early also brings economic benefits. October campaigns enjoy higher click-through rates and lower CPCs compared to November, when competition and costs spike. By activating early, advertisers not only lock in cheaper traffic but also give AI-driven tools more time to learn and optimize for performance before the busiest period begins.
To help marketers scale efficiently, Microsoft is promoting its AI-powered automation suite. Tools such as Copilot in Microsoft Advertising Platform allow users to chat directly with an AI assistant that generates creative assets, analyzes campaign data, and offers optimization suggestions in real time. Similarly, Performance Max campaigns can automatically manage cross-channel placements and formats, learning from early-season engagement to perform better during November’s surge.
Microsoft’s data also points to a fundamental shift in how consumers search. Today’s shoppers are engaging through AI-powered interactions and conversational queries, not just keywords. According to Microsoft research, 71% of consumers want AI assistance while shopping, and Copilot interactions increase purchase rates by up to 194% when intent occurs within 30 minutes.
To align with this behavior, Microsoft advises advertisers to optimize for natural language and question-based search intent, think “best gifts under $50 for dads who love sports” rather than “sports gifts.”
The company recommends using Audience Planner, Dynamic Search Ads, and Dynamic Remarketing to engage users across all funnel stages. Together, these tools build early awareness, recapture interest, and convert late-season shoppers efficiently.
As Microsoft summarizes, early clicks feed performance, performance fuels AI, and conversions rise as the season peaks. making an early start the ultimate competitive advantage for Q4 success.
