Live Search Cashback is a new approach taken by Microsoft to jumpstart its search engine by offering rebates to people who use it to find and buy some products. 700 merchants offering more than 10 million products including HP, Foot Locker and Home Depot have agreed to join the program.
Well, from what I read, they are in to challenge google's adwords campaign as well. Merchants can possibly generate more sales from there and customers will be flocking over there as well since there are cashback.
Looks like desperate attempt to me to crush competitor and Microsoft don't mind taking some losses since they are passing the entire amount of money returned by merchant to the customer.
I, for one, believe that this a good idea, as even I will be using this if I get cashback.
Now we just have to wait for Google to come up with a good idea to combat this.
If only they partner with local suppliers and go global with it. I think that would be great instead of offering only to US market. Can you imagine? Purchasing for a product and getting cash back in return?
Geee.... I think this could only be momentarily to divert attention from google to microsoft. Let's see if they can maintain for long period since many are saying...microsoft is actually absorbing losses out of doing this.