Microsoft's Bing Chatbot Gains Traction as Search Engine Usage Surpasses 100 Million Daily Active Users
Microsoft's Bing search engine has recently surpassed a significant milestone of 100 million daily active users, thanks in part to the successful launch of its AI-powered Bing Chat feature. While Bing has been experiencing steady growth in recent years, the addition of Bing Chat has attracted a new segment of users who have never used the search engine before.
It's worth noting that Google currently boasts over 1 billion daily active users, putting Microsoft's achievement of 100 million users into perspective. Nevertheless, this milestone represents a significant step for Microsoft as it continues to compete with Google and strives to increase its market share.
In a recent blog post, Microsoft’s head of consumer marketing Yusuf Mehdi, announced that ‘We are pleased to share that after a number of years of steady progress, and with a little bit of a boost from the million plus new Bing preview users, we have crossed 100 million daily active users of Bing.’
Although Microsoft had not previously disclosed Bing's daily active user counts, the recent introduction of Bing Chat has put the search engine in the spotlight. Approximately one-third of Bing Chat testers are new to Bing, according to Microsoft, demonstrating that the AI-powered feature has attracted a new audience to the platform. In fact, since the Bing Chat preview began, Microsoft has recorded over 45 million total chats, with users averaging about three chats per session.
While Bing Chat is certainly a contributing factor to increased usage of Microsoft's search engine, it is not the only one. Microsoft Edge, for instance, has also played a role in driving Bing usage as the company promotes its search engine by default through Edge updates, Windows updates, and even prompts to prevent people from downloading Google Chrome. Microsoft expects that new capabilities, such as Bing search and create features in the Edge sidebar, will further fuel growth in Bing's user base.
It has been a month since the launch of the Bing chatbot, and Microsoft has been making several updates to enhance the user experience. In response to concerns regarding the chatbot's occasionally erratic behavior, Microsoft added a toggle for different personality tones to counter any unpredictable outbursts. The company also implemented certain restrictions following instances of inappropriate responses, and has since been gradually lifting those limitations over the past week. These measures demonstrate Microsoft's commitment to providing a high-quality and safe chatbot experience for all users.
Microsoft has recently released new statistics regarding the usage of Bing Chat, coinciding with the company's plans to increase its revenue in the digital ad market, which is worth approximately $500 billion. On a call with analysts last month, Microsoft's CVP of finance, Philippe Ockenden, highlighted that gaining just 1 point of share in the search advertising market could lead to a $2 billion revenue opportunity for the company's advertising business.
Thanks in part to Bing, Microsoft has managed to increase its advertising revenue to $18 billion in the past 12 months, up from $10 billion in the previous fiscal year. However, Microsoft still has a long way to go to catch up to Google, which generated over $200 billion in advertising revenue in 2022. Nonetheless, Microsoft's efforts to expand Bing's user base and develop new advertising opportunities demonstrate the company's commitment to innovation and growth in the digital ad market.
For Microsoft, expanding usage and increasing its market share in the digital ad market represents a significant opportunity to compete with industry leader Google. While Microsoft remains a small player in this space, with only a low, single-digit share, the company is making strides to close the gap. As Mehdi notes, 'It feels good to be at the dance!' This dance refers to the intense competition between Microsoft and Google, as noted by Microsoft CEO Satya Nadella in a recent interview. Nadella stated that he wants people to know that Microsoft has the ability to make Google 'dance,' even as Google remains the dominant player in the search industry.