Microsoft Advertising Removes Max CPC Limits for New Automated Bidding Campaigns

Starting October 1, 2026, Microsoft Advertising is ending support for the Maximum CPC (Max CPC) limit when creating new campaigns with certain automated bidding strategies.

The change applies to new campaigns that do not use Portfolio Bid Strategies and use the following strategies:

Maximize Clicks — maximizing the number of clicks within the budget.
Maximize Conversions with Target CPA — maximizing conversions while taking into account the target acquisition cost.
Maximize Conversion Value with Target ROAS — maximizing conversion value while taking into account the target return on ad spend.

Existing campaigns created before October 1, 2026, that already use the Max CPC limit retain this setting. It also remains available for new and existing campaigns with Portfolio Bid Strategies, which centrally manage bidding across multiple campaigns with a shared optimization goal.

However, this does not mean that CPC is being eliminated as an advertising metric or that bid management at the keyword level is being discontinued entirely. Microsoft is restricting the specific ability to set an additional bid ceiling within automated bidding strategies.

How Target CPA, Target ROAS, and the Max CPC Limit Worked Before

Previously, an advertiser could use an automated bidding strategy while simultaneously setting the maximum allowable cost per click.

For example, a campaign could operate with the following settings:

Bid Strategy: Maximize Conversions.
Target CPA: $50.
Maximum CPC: $3.

In this case, Target CPA defined the primary optimization goal, while Max CPC served as an additional restriction.

The Microsoft Advertising algorithm aimed to generate conversions at the target cost of $50, but it could not place bids higher than $3 for an individual click.

It is important to understand that Max CPC was not a second optimization strategy. The system was not trying to achieve an average cost per click of $3. The specified amount served as an upper bid limit in individual auctions.

The same logic applied when using Target ROAS and when maximizing the number of clicks.

Can Advertisers Still Launch Campaigns with Manual CPC Bidding?

Yes, Microsoft Advertising still supports bid management at the keyword and ad group levels, but the availability of specific strategies depends on the campaign type.

However, it is important to distinguish between Manual CPC and Enhanced CPC.

Manual CPC involves setting bids manually without automatic adjustments by the algorithm. However, Microsoft has already restricted the use of this strategy. In particular, for new Search campaigns, the API does not support Manual CPC as a standalone strategy and uses Enhanced CPC instead.

Enhanced CPC allows advertisers to set base bids, but Microsoft can automatically adjust them based on the probability of conversion. This strategy does not require accumulating conversion data before it can start operating.

An advertiser can start with Enhanced CPC and, after accumulating conversion statistics, switch the campaign to Maximize Conversions with Target CPA.

However, this transition does not allow advertisers to bypass the new restrictions. If a campaign was created after October 1, 2026, and does not use a Portfolio Bid Strategy, advertisers cannot expect to retain the additional Max CPC limit when switching to the relevant automated bidding strategy.

Therefore, launching a new campaign with Enhanced CPC is not a way to reserve the ability to use Max CPC together with Smart Bidding in advance.

Advantages and Disadvantages of the Max CPC Limit

Previously, an additional cost-per-click limit could be a useful control tool, especially when launching new campaigns.

When Max CPC Was Useful

Without sufficient conversion statistics, an advertiser might be concerned that the algorithm would start placing excessively high bids in individual auctions.

For example, for a B2B advertiser with a daily budget of $100, several clicks costing $20–$30 could account for a significant share of daily spending.

An additional Max CPC limit made it possible to restrict such bids, even if the campaign used an automated bidding strategy.

This capability was particularly useful when promoting expensive B2B products, working with narrow search keyword sets, and managing small budgets.

When Max CPC Interfered with Optimization

On the other hand, an additional restriction could reduce the efficiency of campaigns that had already completed their learning phase and had sufficient conversion statistics.

Consider a simplified example.

A campaign uses a Target CPA of $50. The algorithm estimates the probability of conversion at 2% in one auction and 10% in another.

Under these conditions, a $5 click in the second auction could potentially meet the target CPA. However, if the advertiser has set Max CPC at $3, the algorithm cannot place a $5 bid, even with a high predicted probability of conversion.

As a result, the campaign may lose access to the most promising traffic.

Microsoft Advertising explains the change through this exact contradiction: the advertiser simultaneously asks the algorithm to achieve a target CPA or ROAS while restricting participation in certain auctions that could help achieve that goal.

Moreover, the problem remains even when the maximum bid is set above the campaign's average CPC.

Who Should Pay Attention to the Removal of Max CPC in Microsoft Advertising?

First and foremost, the change affects B2B advertisers and PPC specialists who have used automated bidding strategies together with an additional cost-per-click limit.

It is especially important to review the settings of campaigns targeting narrow and expensive search keywords, such as queries related to specialized industrial equipment, enterprise software, or high-cost professional services.

If an existing campaign was created before October 1, 2026, uses Max CPC, and delivers satisfactory results, there is no reason to recreate it unnecessarily. Microsoft is preserving existing limits, so such an account can continue operating with its familiar configuration.

For new campaigns, several approaches are possible:

Start with Enhanced CPC if it is necessary to manage base bids independently and collect initial statistics. Then switch to Smart Bidding without an additional Max CPC limit once sufficient conversion data has been collected.
Use Maximize Conversions with Target CPA or Maximize Conversion Value with Target ROAS, managing results through target metrics, budgets, conversion values, and seasonal adjustments.
Consider Portfolio Bid Strategies if the advertising structure and business goals allow bidding management across multiple campaigns to be combined. Microsoft continues to support Max CPC for these strategies.

When switching to Smart Bidding, particular attention should be paid to the quality of conversion signals. If the algorithm optimizes for form submissions without distinguishing between qualified and unqualified leads, the absence of an additional bid limit may increase the campaign's sensitivity to optimization errors.

Therefore, importing qualified leads, accurately assessing acquisition costs, and regularly analyzing search terms are especially important for B2B advertisers.

Affect's Conclusion

The removal of Max CPC in new Microsoft Advertising campaigns reflects the continued shift of advertising platforms toward automated bid management.

On the one hand, advertisers are losing an additional tool for limiting individual expensive auctions. For small budgets and new B2B campaigns, this may mean reduced control over media buying.

On the other hand, Max CPC often prevented trained algorithms from participating in high-converting auctions, creating an artificial restriction that contradicted the established Target CPA or Target ROAS.

Affect recommends retaining successful existing campaigns with Max CPC if additional control is genuinely necessary, while gradually transitioning new campaigns toward management through conversion targets, the quality of the data being passed to the platform, and budgets.

At the same time, the effectiveness of these changes should be evaluated not by individual expensive clicks, but by final business metrics: CPA, ROAS, and the cost of qualified leads.

Sources

Microsoft Advertising — AI Max for Search and Other Product News for August 2026. Microsoft Advertising Blog
Microsoft Advertising Help — Let Microsoft Advertising Manage Your Bids with Bid Strategies. Microsoft Advertising Help
Microsoft Learn — Budget and Bid Strategies. Microsoft Learn
Microsoft Learn — BiddingScheme API. Microsoft Learn API Documentation