Microsoft Debuts "Cashback" Rebates for Live Search Users

Authored by Mark Hefflinger on May 23, 2008 - 8:30am.

Redmond, Wash. - Microsoft (NASD: MSFT) this week announced a new initiative to boost traffic to its Live Search service, whereby it will pay users to use the search engine with rebates. The "Cashback" service will see advertisers pay only when users click through on ads and make a purchase; Microsoft then takes a cut of this payment and returns the entire amount back to users of the service.

The company said some 700 retailers offering over 10 million products have signed on for Live Search Cashback.

The new initiative comes as Google (NASD: GOOG) increased its share of the search market in April, to 61.6%, while Microsoft's share dwindled 0.3%, to 9.1%, according to comScore data.

"We believe search can offer much more value to consumers and advertisers than it does today, and we see Live Search Cashback as an important opportunity to deliver additional value," said Microsoft chairman Bill Gates.

"Our goal is to make Live Search the most rewarding commercial search destination on the Web. Live Search Cashback will help advertisers drive more online sales while giving consumers a new way to stretch their dollars."