Microsoft Ads vs Google Ads: In-Depth Comparison for Melbourne Businesses in 2025

When it comes to pay-per-click (PPC) advertising, Google Ads is the dominant player – but Microsoft Ads (formerly Bing Ads) offers unique benefits that are often overlooked. Google’s search engine commands about 94% of the market in Australia (roughly 4.7% for Bing)​, meaning Melbourne businesses will find the largest audience on Google. However, Microsoft Advertising reaches a different segment of users and can deliver strong results with lower costs under the right conditions. Below we compare the two platforms on targeting capabilities, cost-effectiveness, audience reach, industry performance, ROI, and more – with a special focus on what this means for businesses in Melbourne.

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Audience Reach and Demographics

Google’s Reach

With its overwhelming market share, Google provides access to the broadest possible audience. Globally, Google accounts for around 91–94% of all search queries​. In Australia (including Melbourne), Google maintains roughly 94% share of searches​. This translates to millions of potential impressions and clicks. Google’s user base skews very broad and diverse, covering all ages and demographics, though generally leaning younger and tech-savvy​.

Microsoft’s Reach:

Microsoft Advertising covers search on Bing, Yahoo, AOL, and partner sites through one platform. While smaller, it still reaches a significant unique audience – an estimated 63 million search users that Google Ads doesn’t reach​. On desktop devices, Bing’s global search share is around 9–17%, whereas on mobile it’s under 2%​. This indicates Microsoft Ads’ strength is largely on desktop searches, which is important for certain industries and B2B markets. Microsoft’s audience also has a distinctive demographic profile: nearly 46% of Bing users are over 45 years old, significantly older than the internet average​. Moreover, 36% of Microsoft’s search users are in the top income quartile​, and a large portion are homeowners with families. In short, Microsoft Ads can connect you with an older, more affluent user base​ that might not be as active on Google.

For Melbourne businesses, this means Microsoft Ads can help expand your reach to a niche but potentially valuable audience. While the volume of searches in Melbourne on Bing/Yahoo is relatively small (only a few percent of total searches), those users may have higher purchase power or specific profiles worth targeting. If your target customers include professionals, older consumers, or Windows PC users, Microsoft’s network could be an effective supplement to Google’s vast reach.

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Targeting Capabilities

Both Google and Microsoft offer robust targeting options for PPC campaigns, but Microsoft Ads provides unique targeting features that give it an edge in certain scenarios.

Core Targeting

On both platforms you can target by keywords, location (e.g. Melbourne or specific suburbs), time of day, device type, demographics (age, gender, etc.), and audience segments (such as remarketing lists or custom audiences). Google Ads has very granular targeting including detailed affinities, in-market audiences, and life events – effectively a “Swiss Army knife” of targeting options​​. Microsoft has been catching up in offering similar targeting categories (in-market, remarketing, etc.)​.

LinkedIn Profile Targeting

A standout feature exclusive to Microsoft Advertising is the integration with LinkedIn data. Microsoft Ads allows you to target users based on their LinkedIn profile — for example, by industry, company, or job title​. This means a Melbourne B2B company could serve ads specifically to “IT managers in finance companies” or other professional segments. Google Ads does not offer direct LinkedIn targeting, giving Microsoft a competitive edge for B2B marketers. Experts highlight this LinkedIn integration as a “unique edge, especially for B2B businesses”, allowing extremely precise professional targeting​.

Search Partners and Networks

Google’s ads can appear on Google Search, Google’s Search Partners, and the extensive Google Display Network. Microsoft’s search ads appear on Bing, plus partner search engines like Yahoo and AOL​ (due to a deal where Bing powers Yahoo’s search ads). This multi-platform presence means your Microsoft Ads keywords can surface across several search engines at once, expanding reach beyond just Bing’s own users. For example, if someone in Melbourne searches via Yahoo, they’ll see ads from Microsoft Advertising.

Ad Formats & Extensions

Both platforms offer similar ad formats (text ads, shopping/product ads, responsive ads) and extensions (sitelinks, callouts, location extensions, etc.). Microsoft often mirrors Google’s features, so advertisers can reuse strategies. In some cases Microsoft has unique extensions – for instance, Action Extensions on Microsoft Ads can add a call-to-action button in your ad, which has been shown to boost click-through-rates in testing​. Overall, any targeting or ad format you’re used to on Google will have an equivalent on Microsoft, making it easy to import campaigns.

Takeaway

Google Ads provides more advanced audience types and huge reach for targeting, but Microsoft Ads offers specialized targeting (LinkedIn profile filters) and covers additional search partner sites. For Melbourne businesses that need to reach specific professional demographics or want to appear on all search platforms used by Aussies, Microsoft’s targeting toolkit can complement Google’s capabilities.

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Cost-Effectiveness (CPC and Competition)

A major advantage of Microsoft Ads is its lower competition, which often leads to lower costs per click. Fewer advertisers bid on Bing’s keywords compared to Google, so the auction prices tend to be less inflated. Studies consistently find that Microsoft Advertising clicks are cheaper:

• Lower CPC: On average, Microsoft’s cost-per-click is about 33% lower than Google’s​‍. For example, one analysis noted an average CPC of roughly $1.54 on Bing vs $2.30+ on Google for similar ads​. This gap can be even larger in some industries – one case found Microsoft’s CPC nearly 60% lower for certain keywords​. The primary reason is about 36% less competition in Microsoft’s ad auctions​, allowing advertisers to pay less for each click. Microsoft also still shows ads on the right-hand sidebar of desktop search results (something Google phased out), effectively giving more ad slots and helping keep bid prices down​.

• Budget Efficiency: Because clicks are cheaper, advertisers often find they can achieve results on Microsoft Ads with a smaller budget. In fact, you might only need on the order of 20–35% of the budget you’d spend on Google for similar campaigns​. This makes Microsoft Ads attractive for cost-conscious businesses or those with limited PPC budgets. A lower cost per click can yield more clicks for the same spend, which is especially useful for small businesses in Melbourne trying to maximize their exposure without breaking the bank.

• Cost-Per-Conversion: The ultimate cost-effectiveness measure is cost-per-conversion or cost per acquisition (CPA). Thanks to the lower CPCs, Microsoft Ads often delivers very competitive CPAs. For example, in one case study a law firm’s campaign on Microsoft Advertising achieved a 34% lower CPA than the identical Google Ads campaign​. Another analysis found Microsoft’s average CPA about 37% lower than Google’s (approximately $30 vs $49 in that review)​. In high-cost sectors (legal, finance, etc.), advertisers may see substantial savings per lead by adding Microsoft Ads to the mix.

It’s worth noting that while clicks are cheaper on Bing, the limited volume means you might not spend large amounts even if you want to. One PPC expert notes that even though Microsoft Advertising can technically reach ~25% of searches in the U.S., in practice many advertisers find they can only spend about 10% of what they spend on Google because of lower search volume and demand​. For Melbourne, a smaller market, this could be an even lower proportion. In short, Microsoft Ads is cost-effective on a per-click basis, but it’s a supplement to Google rather than a full replacement if you need large scale. Most Melbourne businesses will find Google can absorb the bulk of their ad budget, with Microsoft being a great way to capture additional cheap clicks once Google is tapped out​.

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Conversion Rates and ROI

Cost per click is only half the equation – we also need to look at how well those clicks convert into customers. Google’s massive reach and data advantage often translate into higher overall conversion rates. A broad 2024 analysis showed the average conversion rate on Google Ads is ~3.75% vs 2.94% on Microsoft Ads​. That implies Google clicks tend to convert ~27% more frequently in general. Similarly, Google’s click-through rate (CTR) tends to be a bit higher (e.g. 3.17% vs 2.83% in one benchmark)​, indicating Google ads may attract clicks slightly more effectively on average. These factors mean that Google often delivers more conversions from the same number of impressions.

However, conversion performance for Microsoft Ads can vary widely by industry and intent. In some cases, Microsoft’s audience and lower competition lead to equal or better ROI despite the smaller traffic. Key points to consider:

ROI and ROAS

Because Microsoft’s CPCs are lower, advertisers can achieve a strong return on ad spend (ROAS) if the conversion rate is even reasonably close to Google’s. Many businesses report comparable or higher ROI on Microsoft Ads campaigns when targeting the right niche. “Microsoft Ads gets often overlooked, yet it offers significant advantages in cost-effectiveness… The lower competition often results in a lower CPC, making it attractive for businesses with tighter budgets,” notes one digital marketing expert​. Essentially, you spend less per click, and if those clicks convert decently, the ROI can be impressive. For instance, a marketer on one forum noted seeing 2-3x higher ROI on Bing for campaigns targeting older customers (since many of those users exclusively use Bing) – anecdotal, but illustrating the potential when audience and product fit is strong.

Case Study – Lower CPA

A real-world case study from a legal firm’s campaigns showed how adding Microsoft Ads boosted ROI. The firm copied their Google Ads search campaign to Microsoft Advertising. As expected, Microsoft delivered fewer conversions (3 vs 21 in the test period), but the cost per conversion was about 34% lower ($93 on Microsoft vs $140 on Google)​. In other words, they paid significantly less for each lead from Microsoft Ads. The reduced CPA improved their overall return, even though Google provided more total volume. This demonstrates that Microsoft Ads can capture low-hanging fruit – those extra few conversions at a much lower cost – thus improving efficiency.

Conversion Rate Differences

Some advertisers do find that conversion rates on Microsoft can lag. The team at SpyFu, after running parallel campaigns, observed their conversion rate from Microsoft Ads was about 50% lower than on Google​. They concluded that while Microsoft brought cheaper clicks, Google brought cheaper conversions overall in their case​. This was partly due to Google’s ability to drive more phone call conversions and mobile users, where Microsoft’s presence is minimal​. It’s a reminder that if your product relies on high volume or certain behaviors (like mobile app installs or younger audiences), Google might yield a better conversion rate and thus lower cost per acquisition despite higher CPC.

Bottom line: ROI on Microsoft Ads tends to be very case-specific.

If your target audience aligns with Bing’s user base (and your landing pages resonate with them), the combination of lower CPC and less ad clutter can produce an excellent ROI – sometimes even better than Google’s. However, if Bing’s users don’t strongly match your customers, you might see lower conversion rates that negate the CPC advantage. The best approach for Melbourne businesses is to test Microsoft Ads alongside Google Ads and measure the cost per conversion. Many find that even a modest budget on Microsoft Ads yields incremental conversions at a favorable ROI, boosting overall campaign performance​.

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Industry Performance and Use Cases

How Microsoft Ads performs relative to Google can depend on the industry and campaign type. Here are some insights on where Microsoft Advertising tends to shine versus where Google maintains an edge:

• B2B and Professional Services: Microsoft’s integration with LinkedIn and its older, professional user base make it highly effective for B2B marketing. If you offer software, industrial products, consulting, or any service targeting business professionals, Microsoft Ads is a strong channel. “If you’re in a B2B vertical like SaaS or manufacturing – especially targeting older decision-makers – Microsoft can work really well,” one PPC strategist advises​. Many of these users are on work PCs with Bing as the default and are less bombarded by competitors’ ads. Melbourne companies seeking to reach executives or niche professional groups should leverage Microsoft’s LinkedIn targeting and presence on office networks.

• Finance, Legal, and High-Competition Niches: These industries often have sky-high Google CPCs due to intense competition. Microsoft Ads can offer relief. Fewer firms advertise on Bing, so lawyers, insurance brokers, real estate agents, etc., might find much cheaper clicks. For example, the legal case study we discussed saw significant savings in CPA on Microsoft Ads​. Additionally, WordStream’s data showed exceptionally strong click-through rates on Bing for industries like finance and insurance (often above 3.5% CTR)​. In competitive markets like Melbourne, where Google Ads for “lawyer Melbourne” or “mortgage broker Melbourne” can be prohibitively expensive, Microsoft Ads can yield clients at a fraction of the cost.

• E-commerce and Retail: Google generally has the upper hand for e-commerce because of its sheer volume and shopping-specific features (e.g. Google Shopping ads, which have huge reach). Microsoft Advertising does offer Bing Shopping campaigns, but the user base is smaller. One marketer noted that for a broad e-commerce business, about 90% of conversions came from Google due to its huge user base​. However, niche retail or luxury products that appeal to older demographics can still perform well on Microsoft. Also, Bing’s audience reportedly spends 21% more per order on desktop than average searchers​, which could mean higher order values when you do get sales via Microsoft. In summary, Melbourne online retailers should see Microsoft Ads as a supplemental channel – it might deliver fewer sales than Google, but potentially at a good return and higher basket sizes among Bing’s shoppers.

• Automotive: Surprisingly, some studies found Microsoft Ads can outperform in automotive searches. In one analysis, click-through rates in the automotive sector were up to 45% higher on Microsoft Ads compared to Google​. Another report noted that in certain automotive ad campaigns, Microsoft generated 10–56% more conversions than Google Ads​. This could be due to demographics (car buyers skewing older or using default PC search) or less competition on Bing for car-related keywords. Automotive dealerships or car services in Melbourne might capture a sizable chunk of leads from Bing with far less competition than on Google.

• Local Services: For local consumer services (plumbers, restaurants, etc.), Google’s dominance and integration with Google Maps likely make it the primary channel. Microsoft Ads does allow geo-targeting (you can target Melbourne, specific postcodes, or a radius), but if the search volume is low, results can be limited. For example, a Melbourne marketing agency found that a narrowly targeted Bing Ads campaign for a local area yielded very few impressions and clicks over a month​. The takeaway is that if your service relies on high local search volume (like many hundreds of searches per day), Microsoft’s smaller user base might not generate enough traffic. Nonetheless, listing on Bing Places (Microsoft’s version of Google My Business) and running some ads could still snag a few extra local customers that you’d otherwise miss – and often at low cost since competitors may not be present.

In summary, Microsoft Advertising performs best for industries and campaigns that align with its user demographics (older, affluent, professional) or where Google’s playing field is extremely competitive and costly. Melbourne businesses in B2B, high-value B2C services, finance, legal, and certain niches should strongly consider using Microsoft Ads in addition to Google. On the other hand, for mass-market products aimed at younger audiences or mobile app-driven services, Google will deliver far greater volume and may justify most of the budget.

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Competitive Advantages of Microsoft Ads (Over Google Ads)

To crystallize the comparison, here are the key competitive advantages Microsoft Ads offers relative to Google Ads:

• Lower Cost Per Click – Because of ~36% less competition in auctions, Microsoft Ads keywords often cost significantly less. Advertisers pay about 33%–40% lower CPC on average than on Google​, stretching your budget further. This can yield cheaper conversions if managed well, improving ROI.

• Unique Audience & Less Saturation – Microsoft’s network reaches millions of users not active on Google, including Bing loyalists and Yahoo users​. This audience tends to be older, higher-income, and often untapped by your competitors. As one Australian marketing expert notes, the main benefit is “access to a unique audience that may not be as heavily targeted” as Google’s​. In practical terms, your ad may face zero or few competitors on some Bing search results, increasing visibility and click potential.

• LinkedIn Profile Targeting – Only Microsoft Advertising enables profiling by LinkedIn data, letting you target ads by a user’s employer, job title, or industry​. This is a huge advantage for B2B campaigns or recruitment marketing. Google cannot match this level of professional targeting.

• Cross-Platform Reach – A single Microsoft Ads campaign can display across Bing, Yahoo, AOL, and other partners​. While each individually has modest share, combined they add up. You effectively cover multiple search engines without extra effort, whereas Google Ads mainly covers Google Search (and smaller partners that use Google). In some international markets, this is critical (e.g. Yahoo is big in Japan). In Australia, the combined Bing+Yahoo share (~5%)​ is small but still represents thousands of daily searches in Melbourne that you can capture.

• Potentially Higher Ad Positions – With fewer advertisers, you have a better shot at the top ad slots on Bing’s results. Even a modest bid might land position 1 on Microsoft, whereas on Google you might need to pay a premium for the same spot. Additionally, Bing’s continuation of right-sidebar ads on desktop means more chances for your ad to show on page one​. Less crowding can also lead to higher click-through rates in some cases since users aren’t seeing as many competing ads.

• Easy Google Import & Familiar Interface – Microsoft has made it simple to import campaigns from Google Ads, and the interface and features closely mirror Google’s​. This lowers the barrier to entry – Melbourne businesses already running Google Ads can replicate their efforts onto Microsoft Ads with minimal hassle. The learning curve is gentle, and Microsoft’s platform is often praised for being user-friendly and requiring slightly less micromanagement for beginners​.

Of course, Google Ads has its own considerable advantages (massive reach, more search data, YouTube and display network, etc.), and in many cases you will still allocate the majority of spend to Google. But the above points illustrate why Microsoft Ads can be a valuable addition to your digital marketing arsenal rather than a direct competitor to avoid. It’s about finding those complementary strengths – for instance, using Google to capture the bulk of searches and Microsoft to efficiently capture the remainder with higher precision and lower costs.

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Effectiveness for Melbourne-Based Businesses

For businesses operating in Melbourne, the Google vs Microsoft Ads debate should be viewed in the context of the local market. Here’s how the comparison plays out specifically in Melbourne and Australia:

‍Search Engine Usage in Melbourne

Australians overwhelmingly use Google, and Melburnians are no exception. With Google’s ~94% market share locally​, any Melbourne SEO/SEM strategy will prioritize Google Ads to reach the broad consumer base. Microsoft’s Bing holds roughly 4–5% share in Australia​ (including Yahoo searches that Bing powers). While this is a small slice, consider that Melbourne has about 5 million residents – even 5% of searches represents a sizable number of potential customers. For example, if 100,000 people search for various services in Melbourne per month, Bing could account for ~5,000 of those searches. That’s 5,000 opportunities you could capture with relatively little competition.

Local Competition and Costs

Many Melbourne businesses compete heavily on Google Ads, driving up CPCs for popular local keywords (think “Melbourne restaurant”, “Melbourne plumber”, etc.). On Microsoft Ads, competition for the same keywords is likely sparse. This means your Melbourne-focused ads on Bing may achieve top positions at a fraction of the cost. If most competitors ignore Bing, it’s an opportunity for you to dominate that space. Lower CPC on Microsoft can be especially beneficial for local small businesses with tight marketing budgets. Every dollar saved on a click is money that can be reinvested elsewhere.

Targeting Melbourne Audience

Both Google and Microsoft allow precise location targeting. You can target the entire Melbourne metro, specific suburbs (Mandaluyong was mentioned, which is actually in the Philippines; perhaps you meant Melbourne suburbs like Richmond, Carlton, etc.), or set radius targeting. Microsoft Ads also supports Australian postcode targeting similar to Google. One thing to watch: given Bing’s low mobile share​, reaching on-the-go users (who often search for local shops or restaurants on their phones) might be tougher with Microsoft. Google’s integration with Google Maps and mobile is far superior for capturing those immediate “near me” searches. Thus, Microsoft Ads for Melbourne might work best for searches done on desktops or tablets – for example, someone at home or work searching for a local service provider.

Industries in Melbourne Seeing Success

Anecdotally, Melbourne-based businesses in professional services, finance, education, and B2B tech are well-positioned to leverage Microsoft Ads. These sectors cater to the demographics Bing serves well. If your business falls in this category, you might find that your conversion rates on Microsoft are on par or even better than on Google, since you’re reaching a more filtered audience (e.g., an IT firm advertising on Bing might get fewer clicks, but perhaps they’re from senior managers more ready to buy). On the other hand, if you’re a trendy new cafe targeting students, Google (and platforms like Instagram) would clearly be more effective to reach the younger crowd.

Case Example – Australia

The Australian Competition and Consumer Commission (ACCC) observed that despite new technology (like AI search) entering the scene, Bing hasn’t significantly eaten into Google’s dominance in Australia​. This means as of 2025, Google is still the go-to for most Aussie consumers. Thus, Melbourne businesses should view Microsoft Ads as a complementary channel rather than expecting it to deliver the bulk of leads. In practice, many local advertisers allocate perhaps 10-15% of their search ad budget to Microsoft Ads (as some marketers report)​. This small investment can yield incremental gains without detracting much from Google efforts.

Bottom line for Melbourne

Microsoft Advertising is worth considering as part of a diversified PPC strategy. It can be highly cost-effective for reaching specific segments of Melbourne’s population (often older, professional, or niche audiences) and securing extra ROI from those users who aren’t on Google. The platform’s effectiveness will depend on your industry and target market in Melbourne. You may find it particularly useful once your Google Ads campaigns are mature and you’re looking for the next avenue to expand into without drastically increasing costs​. By testing Microsoft Ads, Melbourne businesses can discover if there’s an untapped pocket of customers on Bing that delivers profitable returns.

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Conclusion

Google Ads and Microsoft Ads each have their strengths, and a savvy Melbourne business can leverage both to maximize results. Google Ads offers unparalleled reach and generally higher average conversion rates thanks to the sheer volume and sophisticated targeting. Microsoft Ads, while smaller in audience, brings powerful competitive advantages like lower CPCs, unique LinkedIn-based targeting, and access to an under-targeted demographic. The data and cases show that Microsoft Ads can achieve a strong return on investment – in some instances outperforming Google in cost-per-conversion – especially for specific industries or audience segments​.

For most businesses, this isn’t an “either/or” scenario. It’s wise to start with Google Ads to capture the bulk of demand, and then expand to Microsoft Ads to tap into additional searchers at a lower cost​. By running both, you ensure your brand is visible wherever your potential customers search – be it on Google or Bing. Importantly, monitor performance metrics separately. You may notice, for example, that Microsoft Ads yields fewer but cheaper leads, while Google yields volume but at higher cost – allowing you to adjust budgets to balance volume and ROI.

In crafting your strategy, rely on the strengths of each platform: use Google’s dominance for scale and use Microsoft’s niches for efficiency and precision. A well-optimized Microsoft Ads campaign can become a secret weapon for Melbourne companies, capturing high-intent customers your competitors might be missing. Backed by statistical insights and expert advice, it’s clear that Microsoft Advertising is an effective, cost-conscious complement to Google Ads for those looking to maximize their PPC marketing impact in Melbourne.

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