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Product category: Search marketing
News Release from: Bigmouthmedia | Subject: Microsoft Live Search Cashback
Edited by the Marketingservicestalk Editorial Team on 23 May 2008

Briefing on Microsoft Live Search
Cashback

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Bigmouthmedia investigates Microsoft Live Search Cashback, its latest secret weapon in the battle to end Google's domination of the search marketplace.

Users of the fledgling Live Search Cashback service will receive cash payments every time they purchase a product found through Microsoft's specialist shopping verticals The move, which underlines the Redmond giant's determination to diverge from the core search market and pursue a greater slice of the online retail sector, follows repeated rumours that Google has made an acquisitive approach to Expedia in an attempt to muscle into the travel sales space

Launched using technology from Microsoft acquisition Jellyfish, in its initial phase the Live Search Cashback service will be available only to users in the US.

Further details are thin on the ground, but among the key points to emerge so far are the following.

* Users must be logged in with a Microsoft account and must purchase a product to be eligible for cashback.

* Users must be citizens of the US and a minimum of 18 years old.

* A minimum spend of $5 is required to claim your cash.

* Each of the search listings will display the saving you make via cashback per cent of spend.

In an attempt to grab market share, Microsoft is pitting itself against online retail competitors such as Amazon and the recently upgraded Google Product search with a strategy that is not a 100 per cent search focused.

This move into an area where the internet giants have traditionally had a poor presence is sure to provoke massive speculation, although the company has been very public about its efforts to improve relevancy and capture more of the search market.

The question on most people's lips will be whether the thought of cashback will be enough to lure users to choose Microsoft major search players, despite its recent poor performance.

Complaints regarding the relevancy of Microsoft's search results and the relative ease with which spammers can game their SERPS have been rife and MSN has dropped below Ask for UK Search Market share.

In fact, it seems surprising that the service has not been rolled out in Google-dominated UK.

Moreover, the UK market contains a heavy community of bargain hunters who discuss money-saving options regularly on affiliate sites and forums.

Cashback sites are already a familiar sight, although some big retail brands are beginning to distance themselves to avoid branding issues.

Maybe Microsoft has a big enough name to be unaffected by such problems - but it could be an issue it would be wise to keep track of.

The move looks to be a strategic one for Paypal, while it dominates the online payment systems market in the UK with a 90 per cent share - the vast majority of its transactions come from EBay in both the UK and the US.

For Microsoft it offers the chance to provide an innovative new product to challenge Google - the holy grail of the search engine players vying with the Goliath for the top spot.

Rumours are flying that Microsoft is trying to grab market share from all angles, citing their recent negotiations with Yahoo! as an example.

But this new service could actually be a complementary move to that proposed partnership.

If Microsoft had all US-based hotmail accounts combined with all Yahoo! email accounts - and therefore Live Search account friendly - their scope would be significantly increased.

It certainly lends weight to the idea that a Yahoo! deal has long been planned by Microsoft.

Whatever Microsoft's master plan entails the search market will be ready.

The question remaining is how receptive they'll turn out to be.

As Europe's largest independent digital marketing agency, bigmouthmedia is perfectly placed to provide informed comment, industry reaction and incisive analysis on this and other breaking stories in the world of search and digital media.

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