Thursday, May 22, 2008

Will search for cash

Microsoft recently announced a "cashback" program to entice online shoppers to use their search engine. Running a distant third in the Search world, Microsoft doesn't disclose whether this is a long-term strategy or a short-term promotion.

Another move highlighted in their announcement is a shift towards a "cost-per-acquisition model of payment", meaning that advertisers only pay for ads that lead to purchases. I think this is an inevitable model and their cashback program may be the missing link that closes the loop between a users search and a purchase.

The full article can be found here.