Developing
If Max CPC is removed from an existing campaign, Microsoft says it cannot be added back.
In 60 seconds
- From October 1, 2026, Microsoft Advertising no longer offers Max CPC on new non-portfolio campaigns using Max Conversions, Max Conversion Value or Max Clicks.
- Existing campaigns keep their setting; portfolio strategies, Target Impression Share and Enhanced CPC are unaffected.
- Microsoft says more Max CPC updates will follow, and that removing the setting from a live campaign is irreversible.
- OpenAI made automated bidding the default for new ChatGPT Ads ad groups at the same time.
Impact Layer
- What changed
- Another ad platform has removed a manual price cap that advertisers used to limit auction costs.
- Why it matters
- Without a cap, automated bidding decides how high to bid, which can raise cost per click even if cost per acquisition targets are met.
- Who is affected
- Search and shopping advertisers on Microsoft Advertising and early ChatGPT Ads buyers.
- Martech stack area
- Advertising
- Stack impact
- Check which campaigns use Max CPC, keep it where it is, and do not remove it unless you accept it cannot be restored.
- Business impact
- Moderate Microsoft's rationale (better performance with explicit targets) is the company's own statement as relayed by PPC Land.
- Related technologies
- What to watch
- Microsoft's follow-up changes, including to API and third-party tools, and how automated bidding performs on cost per click.
Microsoft Advertising removed the Max CPC bid limit from new campaigns on October 1, 2026, according to PPC Land.
The change
- It applies to new non-portfolio campaigns that use Max Conversions, Max Conversion Value or Max Clicks.
- Campaigns created before October 1 keep Max CPC. Portfolio bid strategies, Target Impression Share and Enhanced CPC are unaffected.
- If Max CPC is removed from an existing campaign, it cannot be added back.
- Microsoft indicated more Max CPC updates will follow, and may extend the removal to currently exempt campaign types.
Microsoft’s reasoning
Microsoft’s ads liaison, Navah Hopkins, says advertisers using conversion strategies with explicit targets outperform those leaning on “legacy controls,” and that Max CPC can cause spend pacing irregularities and override stated objectives. The company also says the removal is meant “to simplify bidding.”
ChatGPT Ads
At the same time OpenAI preselected automated bidding as the default for new ChatGPT Ads ad groups, so advertisers must choose manual bids deliberately. The strategy prioritizes volume without guaranteeing cost efficiency.
Our read
Price caps are the control advertisers use to stop an algorithm paying more than a click is worth. Platforms say the caps hurt results. That may be true on average and still be wrong for a particular account. Keep Max CPC where you already have it, test automated bidding on a small share of budget, and watch cost per click as well as cost per acquisition.
Sources
- PPC Land: Microsoft retires Max CPC as ChatGPT Ads defaults to automated bidding (opens in a new tab)
Source of the change, scope, Microsoft's rationale and the ChatGPT Ads default.