cashback
Microsoft Has Nothing to Lose on MSN's Live Search Cashback Program
Microsoft(MS) recently introduced cashback on your purchases through participating merchants if you find your items through MSN's Live search. Given that Google has been gaining search shares again and again, it's not surprising that people view Microsoft's move as desperate. Well, they are trying something that have been proven to work by Ebates, Fatwallet.
Basically, MS has nothing much to lose in this cashback program. They are betting that price-sensitive consumers in this recession period will want to save a few more bucks via cashback. With a CPA-based pricing model, MS hopes E-commerce retailers will increase their spend on advertising through Live when they see more leads through Live and good conversion rates/ROI(return on investment). MS is just giving up a little bit of income to potentially increase their search market share and e-commerce's advertising spend.
