Microsoft Announces Live Search Cashback
In a desperate effort to increase its market share of online searches, Microsoft has announced a service called Live Search cashback, which will offer consumers money back if they buy certain products found through Microsoft’s live.com search engine.
With Live Search cashback, Live Search users can easily find some of the best deals on the Web either at the cashback gallery — where they can compare prices and get ad-funded rebates on more than 10 million products — or by discovering cashback ads in Live Search sponsored listings. Customers sign up for a Live Search cashback account at the time of their first purchase, accrue ad-funded rebates in their account each time they purchase a product in the Live Search cashback program, and receive their rebates in their cashback account directly from Microsoft 60 days after completing purchases. [Microsoft Press]
The move is a clear attempt to attract users away from major competitor Google, getting more traffic to use its search engine and, ultimately, increasing its search advertising revenue. Microsoft, which recently withdrew its bid to acquire Yahoo, has currently a 7% share of searches, far behind the industry leader Google (56%).
Live Search cashback would not only benefit consumers, it would also present interesting opportunities for advertisers. Unlike Google’s pay-per-click (CPC) model, which does not assure searchers complete a transaction, Microsoft’s Live Search cashback promises to pay only if a purchase is made (call-per-action model).
With Live Search cashback, Microsoft helps merchants maximize their advertising investments and drive more sales by providing consumers with an added incentive to buy — a cash rebate. Participating merchants choose to pay Microsoft a CPA fee each time a customer completes a sale through Live Search cashback. The fee is a percentage of the retail price, and when that transaction is complete, Microsoft returns that fee to the consumer in the form of a cash rebate. [Microsoft Press]
The complete Live Search cashback product portfolio includes more than 10 million product offers from more than 700 merchants, including more than 13 of the top 40 U.S. retailers.
The company also announced it has delivered a new Live Search travel destination, Live Search Farecast, making it easy for searchers to find the best travel deals on the Web.
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