Microsoft readies cashback for search

by Andrew McCormick Media Week 22-May-08, 15:50

LONDON - Microsoft chairman Bill Gates has outlined plans to hand users money for buying products through Microsoft Live Search.

At Microsoft’s Advance 08 conference in the US, Gates, in a bid to erode Google’s dominance of internet searches, announced plans to develop Live Search CashBack, which will pay users for purchasing goods through Windows Live Search.

More than 700 retailers, including book site Barnesandnoble.com, eBay and others have signed up to the service that will initially trial in the US.

Users searching for new products through Microsoft’s search proposition will be invited to compare prices on products and will be offered varying rates of cashback by companies signed up to the scheme.

Payment will be made 60 days after the purchase to ensure users do not return products, only to claim the rebate.

Companies signed up to Live Search CashBack will be charged on a cost per acquisition model, rather than a cost per click model currently employed by search engines.

With Cashback, Microsoft will pay a portion of these advertisers' fees to consumers who establish a Cashback account.

Gates said: “We're going to take a portion of the money we collect from advertisers and redirect that.[That approach] will introduce, we believe, some new dynamics in the marketplace.”