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23 May This post is from from my other blog here Microsoft Live cashback Microsoft recently announced Live cashback, a program that rewards those who search on their Live search engine and consequently buy a product from one of several hundred merchants affiliated with the program. It’s fairly straightforward. Merchants are in essence placing cost-per-action (aka pay-per-action) advertisements for which they only pay Microsoft if there is a sale. They do not pay for a visitor clicking or merely viewing their advertisement. Of that pay-per-action fee, Microsoft is only retaining a small amount, instead passing the bulk of the money collected back to the consumer. Microsoft’s Desperate PositionMy initial response was that this was a desperation move on the heels of a thwarted acquisition attempt of Google. Most of the negative commentary on Live search is based on the premise that because Microsoft lost out on its Yahoo acquisition attempt that they are now relegated to having to pay customers to use their Live search engine. And, to be clear, there is something desperate about Microsoft’s situation in search. They’ve been at this for quite some time now and their progress has been underwhelming. As it currently stands, here’s the lay of the land:
But, insofar as Live cashback itself, it may be a response to a desperate situation, but the program shouldn’t be cast in a negative light solely because it is a response to a difficult challenge for Microsoft. Live Cashback and consumersIf the average Joe can get a few percent of what they spend back when making a purchase (assuming they know Live cashback exists), I’d argue they’d at the very least consider it. Will they actually do it? That I cannot predict. If users do make that switch over to Live, even if only when in a purchasing mindset, the needle moves in Microsoft’s favor on the back of a clear value proposition. Live Cashback and advertisersThe other side of the coin is the advertisers. Over on Google, merchants place AdWords ads for which they pay when the ad is merely clicked upon. With Microsoft’s cashback program, the advertiser is getting a guaranteed ROI. They are only paying when a sale is made. The advertising investment has no risk. A few participating merchants and their that caught my eye include Zappos.com (9% Cashback), Barnes & Noble (6% Live Cashback), and Footlocker (15% Live Cashback). Will Cashback ultimately work?For the program to ultimately work, consumers have to find value when they try the service. That requires having as many merchants as possible participating, and preferably those who are already top shopping destinations online. For merchants to want to participate, they’ll want to see search volume, which is what Microsoft doesn’t have an impressive inventory of. Who knows. Microsoft Live Cashback could be dead-on and drive a self-perpetuating cycle of increased search traffic enticing merchants which in-turn drives more search traffic. If everything is spot on, that cycle will still move slowly. One thing that Google has online that Microsoft does not is incredible brand ...
06 May This post is from from my other blog here I know two places: Sphinn and gooruze. Both are created by online marketers for online marketers. Sphinn takes a Digg-like approach whereas gooruze takes a more social route. If you’re in the industry, both are worth a look. My gooruze page: smcandrew.gooruze.com My Sphinn profile: smcandrew on Sphinn
04 May This post is from from my other blog here Over the weekend Microsoft officially retracted its bid for Yahoo. I, for one, would have liked to have seen this go through. I give Microsoft a pat on the back for coming to the table with the buy. It makes it pretty transparent that Microsoft has had significant challenges in the search arena, and realizes that incremental change isn’t going to cut it at this point. Yahoo? I don’t know what they’re thinking. There aren’t many suitors out there who can make a reasonable offer for Yahoo and then follow through with a provoking, competitive solution. Unless Jerry Yang has some magic market share dust up his sleeve, Yahoo will continue to languish in its role of nonthreatening counterweight that prevents Google from being considered a monopoly. Here’s what others are saying about Microsoft walking away from its Yahoo! bid:
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