It may only be September, but the holiday shopping season is already here. Over the past few years, shoppers have been starting earlier than ever. In fact, research shows that nearly 40% of U.S. holiday shoppers begin before Halloween (National Retail Federation). That means if you wait until November to fine-tune your campaigns, you’re already behind.
“People are starting to shop for the holidays even into September,” said Craig Graham, Co-Founder of digital marketing agency Hiatt Digital. “Early, diligent shoppers are going to be thinking about what they’re buying their kids or family members for Christmas, and they’re already starting to look.
“You’re going to want to be utilizing those audiences that you’ve been building up over this past year, putting those into remarketing campaigns and really starting to get in the mindset that people are starting to shop already.”
For ecommerce businesses, Q4 is the most critical time to capture demand, and your Microsoft Shopping Campaigns can make or break your performance. The way you structure these campaigns determines how effectively you reach customers, manage budget, and stay competitive during the surge.
Let’s explore proven strategies for structuring Microsoft Shopping Campaigns, why they matter, and how to prepare early so you don’t miss out on this crucial revenue opportunity.
Why Early Preparation Matters
Holiday shopping behaviour has shifted dramatically. Thanks to supply chain concerns, rising ad competition, and inflationary pressures, shoppers are browsing and buying earlier. Adobe’s 2024 Holiday Forecast predicts that November will see the steepest rise in ecommerce activity, but October continues to grow in importance every year (Adobe Digital Insights).
Starting your Microsoft Shopping optimisation now gives you three key advantages:
- Lower costs before the peak – CPCs rise sharply closer to Black Friday/Cyber Monday. Getting traction earlier can lock in better performance data and relevance.
- More time to test – You can trial different bidding strategies, audiences, or campaign structures while competition is lower.
- Reduced risk of last-minute chaos – By the time December rolls around, you want to be scaling what’s working, not scrambling to fix problems.
Many PPCers may start their campaigns late, and then throw a lot of money at their campaigns to try and mitigate this. However that could do more harm than good.
“The main thing is that we would never do like a big swing or big change in budget or increasing the target rates,” says Jérémy Courty, Head of Paid Media at Genie Goals. “That’s just going to send the tool into a massive frenzy, because you’re broadening it up and it’s going to try to look after new queries and new inventory that it’s never learned from before.
“So it’s highly likely that you’re going to get a lot more traffic, but the return on that spend initially will struggle. So to mitigate that, especially when we’ve got flash sale, we use bid adjustments, which is highly powerful.”
It’s best to give yourself ample time to prepare and test so you have the strongest chance of a successful holiday season.
1. Segment by Audience
Not all shoppers are the same. Some are discovering your brand for the first time, while others are returning to buy again. Splitting your campaigns by prospecting vs. retargeting audiences lets you deliver more relevant ads and control spend strategically.
Best practices:
- Prospecting Campaigns – Use In-Market Audiences to reach new customers who are actively considering products like yours.
- Retargeting Campaigns – Re-engage past visitors with Remarketing, Custom Audiences, and Product Audiences. Don’t forget Customer Match to serve personalised ads to high-value buyers.
Why it matters:
- Efficiency – Keeps your messaging consistent across search, shopping, and audience campaigns.
- Coverage – Ensures you’re present throughout the funnel, from awareness to conversion.
Pro Tip: Layer seasonal messaging (e.g., “Holiday Gift Guide” or “Limited Stock for Christmas”) into your retargeting ads. These audiences already know you, and the urgency can help push them over the finish line.
2. Query Funnelling
Not all search queries carry the same intent. Someone searching for your brand is far closer to purchase than someone browsing a generic category. By funnelling queries into brand vs. non-brand campaigns, you can sharpen your bidding strategy and allocate budget more effectively.
How to set it up:
- Non-Brand Campaign – High priority, lower bids. Use negatives to exclude brand terms.
- Brand Campaign – Medium priority, higher bids. Exclude generic terms.
- Catch-All Campaign – Low priority, highest bids, no negatives.
Why it matters:
- Consistency – Mirrors how you’d manage keyword campaigns.
- Efficiency – Capture cheaper branded clicks while protecting budget.
- Competitiveness – Bid more aggressively on non-brand queries to expand reach.
For example: If someone searches “wireless headphones,” you might bid lower since it’s a broad, competitive term. But if they search “Bose wireless headphones” or your own product name, that’s where you raise bids, because intent is sky-high.
3. Segment by Product Category
If your catalogue is broad, structuring by category (or even down to SKU level) makes your campaigns easier to manage and optimise. This is especially valuable during Q4 when certain categories outperform others.
Best practices:
- Bid higher on categories with stronger conversion rates.
- Mirror your site navigation for intuitive campaign management.
- Split into granular groups (brands, categories, SKUs) for precision.
Why it matters:
- Consistency – Easier troubleshooting since it aligns with your site.
- Scalability – Works for both small and large catalogues.
- Data Clarity – Gives clear insights into category-level performance.
For example: If you sell apparel, your “Winter Jackets” category might see a big seasonal lift in November/December. Segmenting it out allows you to increase bids and budgets specifically for that category.
4. Segment by Profitability
Not all products deliver equal value. Grouping by ROAS or profitability allows you to push budget toward your winners while keeping an eye on underperformers.
How to set it up:
- Group products by profitability tiers and assign higher bids to high-margin or high-ROAS items.
- Monitor inventory closely—pull back bids on low-stock items to avoid wasted spend.
Why it matters:
- Maximise Profit – Focus budget on products driving the most revenue.
- Responsiveness – Adjust in real time as performance shifts.
- Deeper Analysis – Understand SKU-level contributions to profit.
Pro Tip: Label seasonal bestsellers in your product feed (e.g., “Holiday Hero Products”) and bid more aggressively on them during peak shopping weekends.
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Microsoft vs. Google Shopping: Key Differences
While granular structures are essential in Google Shopping, Microsoft’s smaller search volume means broad categories can still perform effectively. That said, don’t mirror bids across platforms blindly—adjust for Microsoft’s generally lower CPCs and unique audience dynamics.
According to Microsoft Advertising data, CPCs are often lower than Google’s, but competition is also growing. Tailoring your approach to each platform ensures you’re not over- or under-investing.
Best Practices for Microsoft Shopping Campaign Structure
As you head into the busiest retail season of the year, keep these fundamentals in mind:
- Set campaign priorities thoughtfully when layering new structures.
- Start with competitive bids (think £0.30–£1.00 or higher) to gain traction early.
- Monitor untargeted offers in Merchant Centre to avoid missed opportunities.
- Check product feeds weekly to ensure attributes, stock levels, and prices are accurate. Outdated feeds can tank performance fast.
- Use promotions and merchant centre annotations – highlighting free shipping, sales, or holiday deals increases click-through rates.
Conclusion
Holiday shopping behaviour is changing constantly. Consumers are starting shopping earlier and smarter, and they expect personalised experiences. By structuring your Microsoft Shopping Campaigns now, you’ll be ready to capture demand before your competitors.
The key is to stay flexible, data-driven, and responsive. With the right structure in place, your campaigns won’t drive revenue for Q4 and even lay the groundwork for sustainable growth into the new year.
Ready to make this your most successful holiday season yet? Log in to your Adzooma account today and start optimizing your ads.
