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MAY 2008 W4 ALERT Marketing Genius...or Desperation?
Microsoft tries to buy users of its last place Live Search engine <Washington Post><May 22, 2008>The Washington Post (and other outlets) reported today that Microsoft is taking a new, and some would say innovative, approach to encourage Internet searches to use their Live Search engine to shop online. Recent data suggests they had better do something as Live Search is last among the large scale players such as Google and Yahoo…and last by a long shot.
Microsoft’s new approach is called Live Search Cashback. Live Search Cashback works by giving users of the service a rebate of between 2-9% on products that were found using Live Search. Microsoft is banking on scores of users switching to Live Search to save money on their purchases. They claim that rebates are available on 10 million products from 700 merchants.
Analysts were split in the Washington Post report as to whether the program would catch on. “It’s definitely unique at the moment, and it will definitely cause people to take another  look at Microsoft,” said Danny Sullivan, editor of SearchEngineLand.com. But he adds that the process for enrolling in the program is “awkward and confusing.”
Bill Gates, in announcing the program, said, “I think years from now you may look back and say ‘Wow, search started to get a fair bit more competitive.’”
How does it work? In traditional search engine marketing, advertisers pay each time the user clicks on their advertisement. This is the method that has…and continues to…enrich Google.
In Live Search Cashback, the advertiser doesn’t pay unless the user buys thru the service. At that point, the advertiser pays a fee to Microsoft that is a percentage of the sale price. After completion of the purchase, Microsoft gives the consumer a cash rebate.
So in effect, the advertiser is paying the consumer to buy his product through the Microsoft Cashback service. |
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