Microsoft announced an ads solution called "Ads for chat API," which allows online services, apps, and publishers to monetize chat interactions by integrating advertising into the chat flow.

The new solution aims to offer partners greater control and adaptability in their chat experience, allowing them to personalize it with ads that best suit the target audience. Microsoft attributes the creation of the solution to its newly revamped Bing search engine, which incorporated advanced language models into its chat function at a substantial level, a first for a major consumer service.

The company also plans to engage in discussions regarding chat experiences, catering to the needs of those seeking a combination of algorithmic organic results and ads monetization, as well as those focused solely on ads monetization. It is also actively seeking partner feedback to refine and evolve its offerings based on the individual requirements of partners.

Analyst QuickTake: Microsoft's chat-based advertising is a new and potentially impactful ad product that allows seamless integration of ads into chat interactions, providing a personalized and conversational approach to engage with users. It taps into the growing popularity of messaging apps and offers advertisers a unique opportunity to reach its target audience.