Microsoft Ads Is Sunsetting tCPA and tROAS Bid Strategies

Big changes are coming to Microsoft Ads! Starting August 4, 2025, Microsoft will sunset two of its automated bidding strategies: Target CPA (tCPA) and Target ROAS (tROAS). These strategies have long been go-to options for advertisers who wanted Microsoft’s algorithm to hit specific cost-per-acquisition or return-on-ad-spend goals automatically.

But with this Microsoft Ads bidding update, the platform is shifting gears. Instead of tCPA and tROAS, Microsoft will push advertisers to use Maximize Conversions and Maximize Conversion Value strategies, optimized through portfolio bid strategies and broad match.

What does this mean at a glance? If you’ve been relying on these bidding strategies, your campaigns will need some adjusting. This update is part of a broader shift in how Microsoft wants advertisers to think about bidding, optimization, and automation. It’s less about rigid targets and more about flexible, AI-driven performance.

What Are tCPA and tROAS? Why Did They Matter?

Before we jump into what’s replacing them, let’s take a quick look at what’s going away. Target CPA (tCPA) and Target ROAS (tROAS) were automated bidding strategies in Microsoft Ads that helped advertisers optimize for results while keeping costs predictable. 

With tCPA, you’d tell Microsoft the average cost you were willing to pay for a conversion. The system would then try to bring in as many conversions as possible at that price point. With tROAS, it worked similarly, but instead of focusing on cost per conversion, it optimized for return on ad spend, aiming to get as much value as possible for each dollar spent.

These strategies were especially popular for performance-focused campaigns, where efficiency was everything. If your goal was lead generation or e-commerce sales, tCPA and tROAS let you scale without manually adjusting bids all day.

However, they weren’t perfect. Many advertisers ran into challenges with data volume requirements. For example, if your campaign didn’t have enough historical conversion data, the algorithms struggled to perform. Others found the settings a bit opaque, with unclear optimization windows or unexpected fluctuations in results. And sometimes, the strict targets made it hard for campaigns to capitalize on spikes in demand or outperform when opportunities showed up.

What’s Replacing Them: Maximize Conversions & Maximize Conversion Value

Microsoft Ads is shifting from standalone tCPA and tROAS bidding strategies to two broader options: Maximize Conversions and Maximize Conversion Value. These Maximize strategies focus on getting the most results possible, whether that’s conversions or conversion value, within your budget.

Instead of picking tCPA or tROAS as separate bidding strategies, advertisers will now choose Maximize Conversions or Maximize Conversion Value and then set their target CPA or ROAS goals as optional parameters. For example, you can run a Maximize Conversions campaign with a target CPA goal in place, so the system will aim to get you as many conversions as possible while keeping the average cost near your target.

This change doesn’t affect how the optimization actually works behind the scenes. The algorithms still try to hit your CPA or ROAS goals and deliver strong performance. It’s mostly a change in how campaigns are set up and managed, simplifying campaign creation and making bidding more straightforward.

For advertisers familiar with automated bidding in Microsoft Ads, this means less confusion over which strategy to pick while keeping the control they need. These updated Maximize strategies are designed to offer flexibility and efficiency in a cleaner interface.

No Panic Needed—But You Still Need to Pay Attention

If you’re running existing campaigns with Target CPA or Target ROAS, here’s some good news: Nothing changes for you right now. Your campaigns will keep running as usual without any interruptions or required updates.

Microsoft is also leaving portfolio bid strategies alone, so if you’re managing multiple campaigns with shared goals, those setups won’t be affected by this update.

For anyone starting new campaigns after August 4, 2025, the rule is simple: Use the Maximize Conversions or Maximize Conversion Value bidding strategies and set your target CPA or ROAS as optional goals within them. This gives you the same control but with a more streamlined setup.

If you work with Microsoft’s API, Editor, or bulk management tools, the system will automatically convert any Target CPA or Target ROAS bidding choices into the corresponding Maximize strategy. This automatic mapping means less manual work and fewer chances for errors during campaign updates.

What to Expect in Performance and Budget

While the underlying optimization logic stays the same, advertisers might notice some initial changes in campaign performance during the transition. This could include brief learning periods where the system adjusts to the new setup or slight shifts in how budgets are spent day-to-day. These are normal as the new bidding framework settles in and shouldn’t cause long-term disruption.

Bottom line: While there’s no need to panic or rush to change anything immediately, it’s still important to understand these updates so you can plan your campaigns with confidence moving forward.

Why Microsoft Is Doing This

Microsoft’s decision to retire Target CPA and Target ROAS as standalone bidding strategies reflects a broader industry trend toward automation and simplicity in digital advertising. This move aligns with Microsoft’s ongoing push to enhance automation and reduce manual settings in campaign management. 

By consolidating bidding strategies, Microsoft seeks to simplify the user experience, making it easier for advertisers to manage campaigns without sacrificing performance. This approach is part of a broader industry-wide shift where platforms are increasingly relying on machine learning-based goals rather than manual settings to optimize ad performance.

What It Tells Us About the Future

Looking ahead, it’s possible that Microsoft may continue to evolve its bidding strategies, potentially phasing out options like Enhanced CPC or Manual CPC in favor of more automated solutions. However, any such changes would likely be communicated well in advance to allow advertisers ample time to adapt.

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