On a recent conference call, Microsoft talked to a number of investors about the potential of its new AI-powered Bing and Edge devices. According to the report, every 1 percentage point increase in Bing’s share of the search AD market could generate $2 billion in revenue.

Microsoft on Bing: A 1 percentage point increase in search advertising market share could bring in $2 billion a year

The presentation includes forecasts and forward-looking statements from Amy Hood, Microsoft Executive vice president and Chief financial officer, Phil Ockenden, Microsoft CVP and chief Financial officer, and Brett Eversen, Microsoft Vice President of investor relations.

Ockenden expressed great optimism about this opportunity in the slide. The translation of IT House is as follows:

Adding new users, increasing engagement and advertising rates will all drive revenue growth. As Amy mentioned earlier, TAM is over $500 billion in digital advertising, about 40% of which is spent on search advertising.

For every percentage point we increase in the search AD market, our AD business generates an additional $2 billion in revenue.

Bing has just over 3 percent of the search market, according to Statcounter. Google has nearly 93 percent of the market. Bing is so far behind Google that Microsoft’s current goal is not to displace Google, but to gain as much market share as possible, and every percentage point gain could bring Microsoft billions of dollars in revenue.