Microsoft Launches Retail Advertising Platforms: Curate for Commerce & SPB

Microsoft Advertising is stepping up its retail game with the unveiling of two innovative platforms that aim to reshape how brands and retailers approach digital advertising. With these new solutions on display just ahead of next week’s National Retail Federation conference in New York City, Microsoft is leveraging its vast ecosystem to provide retailers with strategic technology designed to drive revenue—and the timing couldn’t be better for businesses seeking to maximize digital engagement.

Overview of the New Retail Platforms​

Microsoft has introduced two distinct tools geared toward retailers and advertisers:

• Curate for Commerce: Currently in a pilot phase, this platform empowers retailers to harness their own first-party data and deliver highly targeted advertisements across the web. With dedicated support to source and manage advertising relationships, Curate for Commerce helps retailers overcome challenges in establishing new revenue channels.
• Sponsored Promotions by Brands (SPB): Running in closed beta, SPB adopts a cost-per-sale revenue model. Rather than traditional pay-per-click or impressions models, advertisers only incur costs when a sale is made. This approach is designed to reduce upfront risk while delivering cost-effective advertising solutions across Microsoft Edge, Bing, and partner retail sites.

By providing advertisers and retailers with platforms that emphasize data-driven results and strategic partnerships, Microsoft is setting the stage for a transformation in retail digital advertising.

Key Points:​

• Two new platforms are in beta: Curate for Commerce and SPB.
• Curate for Commerce uses first-party data and managed support to drive ads.
• SPB employs a cost-per-sale model where advertisers pay only for actual sales.
• Launch partners include retail giant Kohl’s and ad agency Publicis.

Deep Dive: Curate for Commerce​

Curate for Commerce is engineered to fill a key gap in the retail advertising market. Many retailers find themselves short on resources and lacking the established advertising partnerships required to launch new revenue streams. This pilot platform directly addresses those concerns by:

• Leveraging First-Party Data: Retailers can transform the customer information they already possess into powerful advertising strategies. By targeting shoppers with ads that are both relevant and timely, the platform helps create a seamless transition from interest to purchase.
• Dedicated Support Team: Recognizing that not all retailers have the headcount or expertise to build and manage ad relationships, Microsoft provides a dedicated support team to manage these interactions. This managed service reduces the burden on internal staff and accelerates the path to revenue generation.
• Cross-Platform Engagement: Curate for Commerce isn’t confined to a retailer’s website. It enables ads to appear across several channels, connecting with customers wherever they browse online.

For Kohl’s, already on a journey to build its in-house ad network via the Kohl's Media Network, Curate for Commerce represents an opportunity to enhance commerce media programs without the need for significant additional investment. By integrating first-party data with managed advertising relationships, the platform helps overcome the traditional limitations that often restrict digital retail innovation.

Summarized Benefits for Retailers:​

• Monetizes existing data for targeted advertising.
• Minimizes the need for large advertising teams.
• Expands reach across digital channels beyond the retailer’s own site.
• Supports partnerships with non-endemic brands, broadening the revenue pool.

Deep Dive: Sponsored Promotions by Brands (SPB)​

Sponsored Promotions by Brands (SPB) takes a different approach, focusing on performance-based advertising that emphasizes tangible outcomes. Built around a cost-per-sale revenue model, SPB is designed to offer brands a risk-free way to connect with shoppers while guaranteeing advertisers that their budgets are tied directly to sales results.

Key Features of SPB:​

• Cost-Per-Sale Revenue Model: Unlike traditional models where advertisers pay upfront for ad impressions or clicks, SPB charges only when a sale is completed. This model is particularly attractive because it shifts the risk from advertisers to the platform, ensuring that payment is directly linked to performance.
• Broad Integration Across Microsoft’s Ecosystem: SPB is expected to run across Microsoft Edge, Bing, and an array of retail partner websites. By being present on these high-traffic channels, the platform ensures that personalized, data-driven advertising reaches a wide and diverse audience.
• Single Campaign Reach: Advertisers can set up one comprehensive campaign that spans multiple retailer sites, reducing complexity and increasing reach without the need for multiple individual agreements.
• Early Beta Adoption by Publicis: The involvement of the ad agency Publicis in testing SPB underscores industry confidence in the model. As one advertiser noted, the cost-per-sale structure provides a way to guarantee results, benefiting both the advertiser and the consumer through discounts and deals.

This performance-based approach aligns well with broader digital advertising trends where measurable outcomes and return on investment are paramount. For brands looking to make the most of their advertising dollars, SPB’s model could prove to be a game changer.

Summarized Benefits for Advertisers:​

• Payment is only made upon actual sales, minimizing wasted spend.
• Simplified campaign management across a vast network.
• Increased potential for personalized, data-driven ad experiences.
• Enhanced accountability can lead to more efficient budget allocation.

Comparative Overview of the Platforms​

To better understand how these platforms stack up against each other, consider the following comparison:

Feature	Curate for Commerce	Sponsored Promotions by Brands (SPB)
Primary Focus	Monetizing first-party data	Performance-based advertising with a cost-per-sale model
Target Users	Retailers seeking to leverage existing data	Brands aiming for a broader retail network engagement
Revenue Model	Managed, data-driven monetization	Cost-per-sale (payment only on actual sales)
Beta Partners	Kohl’s	Ad agency Publicis (for initial testing)
Integration Channels	Managed support for third-party sites and relationships	Microsoft Edge, Bing, and partner retail websites

This table illustrates that while both platforms aim to enhance digital advertising in retail, their approaches and revenue models cater to different segments—one focusing on empowering retailers with actionable data, and the other targeting brand advertisers looking for performance-driven solutions.

The Shift to a Cost-Per-Sale Model in Digital Advertising​

One of the most compelling aspects of Microsoft’s new offering is the shift toward a cost-per-sale model. This model is gaining traction as advertisers increasingly demand that every advertising dollar translate directly into revenue. Here’s why the cost-per-sale approach is resonating with many in the industry:

• Risk Mitigation for Advertisers: With traditional models like cost-per-click (CPC) or cost-per-impression (CPM), advertisers can end up spending large amounts of money without a guaranteed return on investment. The cost-per-sale model eliminates much of that uncertainty.
• Incentivized Performance: When payment is tied directly to sales outcomes, platforms and advertisers are more motivated to optimize campaigns to achieve tangible results.
• Easier Budget Management: Advertisers can better forecast expenses and allocate budgets in a way that directly correlates with revenue generation. This allows for more agile and adaptive marketing strategies.
• Improved Consumer Value: By focusing on conversions, advertisers are inclined to offer real discounts or promotions that benefit the end consumer, creating a win-win situation for all parties involved.

The trend toward performance-based advertising is evident across various sectors, but its application in the retail space is particularly exciting because it directly ties the advertising experience to shopping behavior—a critical metric in today’s competitive market.

Integration with the Microsoft Ecosystem and Impact on Windows Users​

While these platforms are primarily aimed at retail and advertising, their influence resonates throughout Microsoft’s broader ecosystem—including Windows itself. Here’s how these launches integrate with and could benefit Windows users:

• Enhanced Browsing and Search Experience: With SPB integrating with Microsoft Edge and Bing, Windows users might soon see more personalized, relevant promotions and product suggestions that improve their browsing experience. This can lead to a more seamless shopping journey directly from their desktop or mobile devices.
• Optimized Windows 11 Updates and Ecosystem Integration: As Microsoft continues to refine Windows 11, the integration of such advanced advertising platforms could eventually dovetail with system-level enhancements. For example, future Windows updates might incorporate more intelligent ad placements that are less intrusive and more aligned with user behavior and preferences.
• Security and Privacy Considerations: Microsoft’s reputation for robust security and privacy measures means that even as retailers and brands harness first-party data for advertising, users can rest assured that cybersecurity practices and compliance with privacy standards remain a top priority. This aspect is particularly critical given the ongoing conversations around Microsoft security patches and cybersecurity advisories in the tech community.

In essence, while these retail platforms are primarily marketing tools, they also serve to strengthen the Microsoft ecosystem—which ultimately benefits users of Windows through more integrated, secure, and user-friendly digital services.

Addressing Retail Challenges with Strategic Technology​

Retailers have long grappled with challenges such as resource constraints, market fragmentation, and the complexities of building in-house advertising networks. Microsoft’s new platforms directly address these issues by:

• Streamlining Advertising Relationships: Rather than requiring retailers to forge multiple individual partnerships, platforms like Curate for Commerce centralize these relationships, reducing complexity and administrative overhead.
• Reducing Investment Barriers: With integrated support and managed services, retailers can tap into new revenue streams without having to make significant investments in additional staffing or technology infrastructure.
• Expanding Reach Beyond Traditional Boundaries: The ability to display ads across various non-endemic sites—and through trusted channels like Microsoft Edge and Bing for SPB—allows retailers to reach a wider audience without overextending their marketing efforts.
• Providing Actionable Data: By leveraging first-party data effectively, retailers can foster more personalized connections with shoppers, leading to improved customer engagement and loyalty.

These advances showcase how targeted technology solutions can dissolve longstanding barriers in the retail sector, laying the foundation for a more dynamic and connected advertising landscape.

Economic and Marketing Perspectives​

From a broader economic standpoint, Microsoft’s initiatives reflect the industry’s ongoing shift toward performance-based and data-driven marketing strategies. The introduction of cost-per-sale advertising is not just a new revenue model—it signals an evolution in how brands and retailers measure success. Here are a few key observations from an industry perspective:

• Advertisers are demanding more accountability from their ad spend, and the cost-per-sale model fits squarely into this need for measurable outcomes.
• Retailers benefit from a model that requires minimal upfront investment, which encourages a more aggressive and expansive approach to online advertising.
• Market leaders, through early beta adoption by companies like Kohl’s and agencies like Publicis, are setting an example that could pave the way for broader industry acceptance of these performance-driven models.

Industry insiders have noted that integrating such platforms at scale could help stimulate growth in the ever-competitive retail market. As more brands recognize the potential for linking advertising spend to direct sales, the retail media space could see a significant transformation in how budgets are allocated and campaigns are executed.

Beta Testing and What Lies Ahead​

The beta phase is crucial for refining any new technology, and Microsoft is no stranger to iterative development. By partnering with renowned retail and advertising leaders during this initial phase, Microsoft is gathering real-world feedback to ensure that both Curate for Commerce and SPB perform robustly at scale.

• Kohl’s Pilot: Kohl’s ongoing investment in its in-house ad network, combined with the integration of Curate for Commerce, is providing invaluable insights into how the platform can be optimized for larger retail operations.
• Publicis Involvement: The testing of SPB by Publicis—a major player in the advertising industry—underscores the platform’s potential to deliver robust, performance-based advertising without upfront costs for the advertiser.

The outcomes of these beta tests will not only influence the final product features but also help refine the underlying technology to better serve both retail and advertising needs. As Microsoft prepares for broader deployment later this year, industry stakeholders are eagerly watching how these platforms will perform in live market conditions.

Looking Ahead: The NRF 2025 Impact​

With the National Retail Federation conference just around the corner, the timing of these platform announcements is significant. The NRF event serves as a vital rendezvous point for retail innovation, where digital transformation trends are discussed and showcased. Microsoft’s platforms, unveiled ahead of this industry showcase, could very well steal the spotlight by demonstrating how data-driven advertising is evolving in real time.

• Industry Adoption: As retailers and brands attend NRF 2025, they will likely be keen to explore how these new platforms can be integrated within their digital marketing strategies.
• Setting New Standards: Microsoft’s emphasis on performance-based revenue models might prompt competitors to re-evaluate their own advertising strategies, potentially leading to industry-wide shifts that benefit both advertisers and consumers.
• Future Integrations: Given Microsoft’s integrated ecosystem, these platforms could eventually tie into broader offerings across Windows, further enhancing the digital experience for users and retailers alike.

Conclusion: A New Era in Retail Advertising​

Microsoft’s unveiling of Curate for Commerce and Sponsored Promotions by Brands marks a watershed moment in retail advertising. By aligning advanced data analytics with innovative revenue models, Microsoft is not only addressing long-standing challenges faced by retailers but is also paving the way for a more performance-driven advertising landscape.
For retailers, the promise of leveraging first-party data with minimal investment—and having dedicated support to manage complex ad relationships—represents a significant step forward. For brands, the cost-per-sale taxonomy of SPB mitigates risk, ensuring that every dollar spent is directly linked to a tangible outcome. And for Windows users and the broader Microsoft ecosystem, these advancements are yet another example of how integrated, user-centric technology can power an entire industry.
As the retail landscape continues to evolve, Microsoft’s strategic moves serve as a reminder that innovation is not just about new products—it’s about rethinking traditional models to create win-win scenarios for businesses, advertisers, and consumers alike. The journey from data collection to sale has never looked so dynamic, and as these platforms roll out from beta to full launch, the retail world may well be entering a new era of digital transformation.
Key Takeaways:

• Microsoft is introducing two innovative platforms—Curate for Commerce and SPB—with pilot programs in collaboration with Kohl’s and Publicis.
• Curate for Commerce empowers retailers with data-driven advertising supported by expert management, addressing resource challenges.
• SPB’s cost-per-sale model minimizes risk for advertisers, aligning expenditures directly with sales results.
• The integration across Microsoft’s ecosystem (including Windows, Edge, and Bing) promises enhanced user experiences and secure, personalized digital engagement.
• With NRF 2025 on the horizon, these developments are poised to influence industry standards and shape the future of retail advertising.

In summary, Microsoft is not only strengthening its foothold in the advertising realm but is also setting a benchmark for performance-based marketing that benefits all stakeholders—a true win-win in today’s fast-evolving retail landscape.

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Source: MediaPost Microsoft Unveils Retail Platforms Ahead Of NRF: Beta Users Include Kohl's, Publicis