Microsoft has finally unveiled its latest secret weapon in the battle to end Google's domination of the search marketplace after mounting speculation over recent weeks.Announced today, 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, also follows repeated recent rumours that Google has made a similar acquisitive approach to Expedia in an attempt to muscle into the travel sales space.
Launched utilising 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 amongst the key points to emerge so far are:
- 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 as a % 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% 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 over other major search players, despite Microsoft Live's recent poor performance in the search landscape. In particular, 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 long fallen below Ask in UK Search Marketshare as a result.
In fact, it seems surprising that the service has not been rolled out in the - Google-dominated - UK. The UK market contains a large community of bargain hunters who discuss money saving options regularly on affiliate site and forums. Cashback sites are already a familiar sight, although some big retail brands are beginning to distance themselves to avoid branding issues. It's possible Microsoft have a big enough name for themselves to be unaffected by such problems - but it could be an issue they would be wise to keep track of.
The move looks to be a strategic one for Paypal. While they dominate the online payment systems market in the UK with a 90% share, the vast majority of its transactions come from Ebay in both the UK and the US. For Microsoft, the UK represents the chance to provide an innovative new product to challenge Google - a long held holy grail of the search engine players vying with the Goliath for the top spot.
Rumours are flying that Microsoft is trying to grab marketshare from all angles, citing their recent negotiations with Yahoo! as an example. But this new service could actually be a complimentary move to that proposed partnership. If Microsoft had all US based hotmail accounts combined with all Yahoo! email accounts - and therefore Live Search account and Cashback 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.
One thing remains certain: whatever Microsoft's masterplan for search entails, the search market is ready and waiting for a shake up.
