Microsoft search cashback – stroke of genius or sign of desperation ?

Microsoft is trying to buy your searches. The new program, dubbed Microsoft Live Search Cashback, sounds like some sort of cash rebate program similar to what you see in loyalty programs at retail stores or credit cards. Is it a wise move for Microsoft ? Will it turn the page for Microsoft vis-a-vis Google’s overwhelming market share in search business ?

We think the idea has some merit but for the most part it is an act of desperation. After all, searches are not for sale. People search in the hope to find good matches for their searches and advertisers go to search engines where they see consistent scalability and return on ad dollars. Microsoft has to do better on various other aspects of search like better searches, better ROI to advertisers, more relevant ads. Today, a small number of folks use Microsoft Live search – roughly 9.1% of US searches are done via Microsoft Live vs 61.6% for Google. Simply buying searches is not going to do it. This is classic Microsoft, if you can’t win on business model or innovation, use financial muscle to buy your way in. This may work but only in large partnership customers of Microsoft who will be hounded by Microsoft’s aggressive sales personnel to replace Google search box with MS Live search. For the vast majority of consumers and businesses however, their Google search box isn’t going away anytime soon.

MT