Wednesday, May 21, 2008

Microsoft Live Search Delivers Pay Per Action

Microsoft just unveiled a program for its Live Search engine that provides consumers with a rebate on purchases made through the site. It’s Microsoft’s latest effort to lure more search traffic from Google and Yahoo.

According to an article by IDG News Service, “The cash back program offers an advantage for Web advertisers in that they only have to pay when they sell an item, known as a ‘pay-per-action’ fee. It also avoids the problem of click fraud, where bogus clicks on an ad drive up marketing costs.”

Will this help Microsoft steal away a share of the search market? Probably not. The registration requirements and waiting period for the money are both fairly extensive. Yet, this demonstrates the importance of competition as it leads to new approaches and innovation.

Microsoft unwraps search engine reward program

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