White Hat Media News
16/06/2008 | Microsoft Offers Cashback to Advertisers
Microsoft is offering cash rebates to US customers who buy products from retailers advertising on the Live Search website. Microsoft’s aim is to try to catch up with search market leader Google. Advertisers will only be charged per acquisition, as opposed to more traditional pay-per-click methods. Microsoft Cashback is currently only available in the United States.
Cashback has been launched in an attempt to gain ground on rival search engines, Yahoo and runaway leader, Google. Bill Gates, chairman of Microsoft, highlighted how he hoped Live Search Cashback would attract more advertisers in order to compete with Google. Speaking at Microsoft’s annual digital ad conference, Mr Gates claimed that the overwhelmingly positive feedback from all the partners confirms there is this opportunity for change.
Greg Sterling, an analyst at SearchEngineLand.com, welcomes the challenge to Google. Mr Sterling acknowledges that Google’s existing customers are comfortable and there has been little to lure them away. The cash incentive may offer something different. Search industry reaction to the announcement has not all been positive. Jeffrey Lindsay, a financial analyst at Sanford Bernstein & Co, concluded that the effect would be limited in scope and would not undermine margins across Google's larger market share. Mr Lindsay proposed that in the unlikely event of Live Search Cashback making inroads to Google’s superiority, Google would just retaliate with a similar scheme of its own.
Bloggers responding to Microsoft’s announcement are questioning whether Search Live Cashback offers better value than existing online retailers, such as Amazon and Google. Some goods were available at lower prices, even allowing for the Cashback rebate.
Time will tell whether or not the scheme is a success and is introduced in the United Kingdom. Web advertisers should keep up to date with new developments in the lucrative online search industry. Bill Gates also announced in his keynote speech that Microsoft will be announcing big news every six months.
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