Live Cashback

In an attempt to increase search volume Microsoft Live Search has been running its cashback system in the states for a while now.

Described by some cynics as "Microsoft paying for searchers" the move would appear to be a genuinely innovative way of generating much needed traffic.

The idea of offering rewards for loyalty is not new but having spoken to a number of people over the past few days, cashback may well prove to be the incentive needed for users to switch from Google particularly when they are considering a making purchase rather than just browsing.

You can preview the system (it's going to take a while to bring cashback here to the UK) by going to Live Search and changing your country option from United Kingdom to United States (English) in the right hand menu bar (or simply click this link).

Search for DVD Players and you'll probably see one or more Live Search Cashback icons in amongst these ads. These icons tell you that the vendor is offering a discount for Live Search visitors. What you'll probably find right now is that most of these icons link either for the Cashback site itself or to Ebay.

Couple of points that may be worth noting...

If the discounts offer a genuine incentive for those looking to buy and not just browse, the impact on ROI could be very interesting.

Is there a conflict between Microsoft's claim to want to increase the quality of ads compromised by clearly differentiating and highlighting vendors who are willing to participate? Presumably the CTR for ads featuring the icons will increase substantially.

Don't the icons look very similar (in shape and position) to the Google Checkout icons and will consumers confuse cashback with checkout?

From a PPC marketers point of view Cashback seems to be a great idea and a clear demonstration that Microsoft can be innovative and creative in its struggle to gain search query share.

How do you compete with a verb?

As previously mentioned AdCenter’s main challenge is in generating search volume.

Google has such a large share of the search market that it’s hard to see how Live Search can compete. Microsoft talk a lot about “disruptive technology” and how producing something that is better than the competition or markedly different can de-throne a market leader.

I guess here in the UK a good example of disruptive technology would be Dyson Vacuum cleaners. There are parallels in that Hoover was the dominant brand and indeed the brand became a verb as in “to Hoover the carpet”. Very few people in the UK talk about “vacuuming the carpet”. Likewise people talk about “Googling” when they are referring to Search. Dyson entered the vacuum cleaner market with a new and innovative product that undoubtedly stole some of Hoover’s market share.

LiveSearch has two challenges...
How to come up with disruptive technology that is markedly different (and better) than Google.

How to compete with a verb. Despite Dyson’s disruptive technology, we still don’t “Dyson the carpet”.

Part of the Live Search strategy revolves around Live Search Cashback which is already underway in the US but more of that later.