Microsoft Advertising is taking away one familiar control from some new campaigns. From 1 October 2026, advertisers creating new non-portfolio campaigns with several automated bidding strategies will no longer be able to set a maximum cost per click (Max CPC).
The change affects new campaigns using Target CPA, Target ROAS, Maximise Conversions, Maximise Conversion Value and Maximise Clicks. Microsoft says a bid cap can restrict its system’s ability to optimise towards the campaign’s wider performance goal, even when that cap appears comfortably above the account’s average cost per click.
For businesses in Bath and across the South West, this is not a reason to abandon Microsoft Ads. It is, however, a useful prompt to check whether budgets, conversion tracking and performance targets are doing the job that a bid cap may previously have helped with.
What is changing — and what is not
The new rule applies only when creating a campaign after the October deadline and using one of the affected standalone bidding strategies. Existing campaigns created before 1 October that already have a Max CPC setting can retain it.
Portfolio bid strategies are also outside the change, so Max CPC will remain available for new and existing campaigns that use them. Target Impression Share and Enhanced CPC are not affected.
Microsoft is expected to remove the setting from campaign creation in its web interface first. Microsoft Advertising Editor will follow, although no precise date has been announced, and an application programming interface (API) update is expected later.
That distinction matters. This is not a blanket removal of every bid limit from every Microsoft Ads account. It is a narrower change to how certain new standalone automated campaigns are set up.
Why a local advertiser should care
A Max CPC can feel reassuring, particularly for a smaller advertiser working in a competitive market. It puts an obvious ceiling on what the platform may pay for one click. But a cap is only one control, and it can create a false sense of safety if the campaign has weak tracking or an unrealistic target.
A lead-generation campaign, for example, may keep individual clicks below a chosen limit while still spending money on enquiries that never become customers. Conversely, a useful high-intent click might sometimes cost more than the cap but produce a valuable booking, sale or consultation.
Microsoft’s direction is clear: it wants advertisers to guide automation through outcomes, budgets and targets rather than through a hard price on every click. That makes good conversion data more important. If the system cannot distinguish a qualified lead from a low-value form submission, giving it more bidding freedom will not solve the underlying problem.
What to check before 1 October
Review campaigns that may need rebuilding. If you expect to replace, duplicate or restructure a campaign in the autumn, note whether its current setup depends on Max CPC. A newly created version may not offer the same control, even when the original campaign still has it.
Check conversion tracking. Confirm that the actions used for bidding represent meaningful outcomes. Test forms, calls and ecommerce events, and make sure duplicate or low-value conversions are not being counted as primary successes.
Look at targets and budgets together. Target CPA and Target ROAS settings need enough room and data to work. A very tight target combined with a small budget can restrict delivery just as surely as a bid cap. Use recent, representative performance rather than choosing a target because it looks comfortable on paper.
Watch search terms and lead quality. Automated bidding does not remove the need for human review. Search-term relevance, location settings, negative keywords, landing-page quality and sales feedback still determine whether traffic is useful.
Record the before-and-after position. Save current settings and benchmark spend, conversion volume, cost per acquisition and lead quality before making changes. That gives you a sensible comparison if performance moves after a new campaign launches.
A change in control, not the end of control
The practical response is not to chase the lowest possible click price. It is to define what a worthwhile result looks like and make sure Microsoft can measure it. A sensible daily budget remains a firm account-level guardrail, while targets, exclusions, campaign structure and regular reviews provide further control.
Businesses using paid search alongside organic search should also judge the channel by the enquiries or sales it contributes, not by one bidding metric in isolation. For organisations that need help reviewing setup and measurement, our paid search management service in Bath covers the same fundamentals across major search advertising platforms.
Existing Microsoft Ads campaigns do not need an emergency change. The useful action now is to identify any campaign plans that cross the 1 October deadline, improve conversion data and decide how performance will be monitored when a new standalone campaign no longer offers Max CPC.
Source: Search Engine Land, reporting Microsoft Advertising’s announced change.
