2008 the year of Cashback?
In a move clearly targeted at tempting users and thus advertisers away from Google TechCrunch is reporting that Microsoft will be introducing a new search product today - Live Cashback. Details are pretty thin at the moment but from what I can gather MS will be offering a CPA type solution for advertisers in exchange for their product feeds with users getting a kickback at the checkout.
So essentially MS is looking to become the worlds biggest affiliate. It's an interesting tactic - as it's both an acceptance that they need a stick and carrot to lure new users, but if, successful they'll gain access to user consumption data that even Google would like their hands on. They'll know first hand which keywords convert best for which products and, in theory, they'll be able to significantly reduce costs for advertisers through more accurate optimisation.
Not all content on the web can be treated like this however, at the very least you're going to need a product feed, and while that is by no means a small market, it can't necessarily be applied to the more lucrative sectors such as finance and travel. No lost sleep for sites such a Quidco then? Well at least for the time being, but this is a major shift and shows just how powerful cashback has become. If more of the big boys look to follow suit, and we get more widespread education of cashback principles (which has always been its downside) 2008 could well see a a slew of new sites enter the space and much more fierce competition for members.
