Microsoft Advertising Adds Age and Gender Exclusions to Performance Max Campaigns

On August 31, 2026, Microsoft Advertising announced expanded targeting controls for Performance Max. Advertisers gained the ability to include and exclude specific age and gender groups from automated campaigns. General availability of the feature was scheduled for September 8, 2026.

What Are Demographic Exclusions in Performance Max?

Performance Max automatically distributes ad impressions across available Microsoft Advertising placements, using machine learning algorithms to find potential customers.

Previously, demographic controls in PMax were limited compared to traditional Search and Audience campaigns. Advertisers could provide audience signals but did not have a comparable set of tools for excluding specific demographic groups.

Now, advertisers can restrict ad delivery by age and gender at the PMax level.

The available age groups are 18–24, 25–34, 35–49, 50–64, and 65 and older. The gender categories are Male, Female, and Unknown.

The Unknown category includes users whose age or gender the system could not determine. Excluding this category may significantly reduce advertising reach.

What Changed for Advertisers?

The main change is the shift from advisory demographic signals to explicit restrictions on advertising reach.

For example, a manufacturer of products intended for a specific adult audience can exclude age groups that are not relevant to its offering.

This reduces potentially irrelevant impressions but also limits the algorithm's ability to find conversions outside the advertiser's initial assumptions.

It is important to consider Microsoft's advertising policy restrictions for sensitive categories, including financial services, insurance, education, housing, and employment. The new PMax settings do not override these policies.

How to Use the New Exclusions

In Microsoft Advertising, open a Performance Max campaign and check whether demographic settings are available under its targeting options.

Before excluding an audience, it is recommended to analyze the performance of age and gender segments, verify compliance with advertising policies, assess the size of the Unknown category, and then compare changes in reach, spending, CPA, and conversions.

It is especially important not to exclude Unknown automatically, as this category may include potential customers who match the target audience.

Limitations and Results

As of October 2026, there is insufficient independent research on the impact of the new demographic exclusions on CPA and ROAS.

Reducing reach does not guarantee improved performance. For example, excluding a group with a low conversion rate may reduce spending but also decrease the number of profitable conversions.

The update gives advertisers greater control over automated PMax campaigns. Each exclusion should be justified by actual performance data rather than assumptions about buyers' age or gender.

Sources

1. Microsoft Advertising: AI Max for Search and Other Product News for August 2026. Microsoft Advertising Blog
2. Microsoft Learn: Show Ads to Your Target Audience. Microsoft Learn