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Microsoft Live Search Cashback

Last week Microsoft launched a cashback incentive scheme that gives US customers rebates on goods purchased from selected retailers on their own search engine, Live Search. The money is not knocked off the goods at the time of payment but paid into a personal Cashback Account – a bit like PayPal - set up by the customer. Microsoft say 700 retailers have signed up, offering more than 10 million products.

For Microsoft the benefits are obvious. They need to attract people to their Live Search engine and people like to save money. Simple. Some are calling it down right bribery, but hey, that’s business! But what does it mean for the future of pay-per-click and search engine marketing? Well, right now, very little. It’s not really a new idea as such; it’s an affiliate programme in all but name. However, if it catches on, increases Microsoft’s share of the search engine market then it could be taken up by Google etc. and become the template for SEO in the future.

But a word of warning before everyone gets too excited. Microsoft is not taking a cut of the cut, so to speak. The entire discount, 100%, is rebated to the customer. Some are suggesting that what may happen, once the system is bedded in, is that Microsoft will find the lure of the cash too much to resist and might start keeping some of the cashback for themselves. In which case it begs the question as to why a retailer would want to be hit twice on the same transaction… Interesting times…

Microsoft drops bid for Yahoo! (!)

Industry analysts and watchers have been in a frenzy for months over Microsoft’s much publicised take-over bid for Yahoo! As with all global mega-deals of this sort there was much talk, much posturing, much backstabbing and lots of ego stroking. When you’re both lumbered with a zillion shareholders any potential deal is fraught with problems – sort of like two politicians in a synchronised swimming contest. They need to execute the moves to a high standard, wow the crowds, act tough, look fit, kiss babies and avoid sinking even further at the same time.

So – it shouldn’t really come as a big shock that Microsoft got out of the pool, readjusted it’s trunks and left the building. Because if you can’t win then at least pull in your stomach, straighten your back and exit gracefully with your 47.5 billion dollars still in your pocket. "I am disappointed that Yahoo has not moved towards accepting our offer," says Microsoft chief executive Steve Ballmer. Yahoo co founder and chief executive Jerry Yang says: “We did not say it was a take-it-or-leave-it number in the sense that we would never negotiate any more. We were totally willing to do a transaction, and they walked away.” Ummmm. Just goes to show you that reality depends on where you’re standing.

It would have been the largest transaction of its type in history and, despite reports, insiders still think it could be. Is the walk-out part of the game? Who knows? What is for sure is that Yahoo still have their sights on doing a partnership deal with Google. And Microsoft still need to make up ground against Google. So until Google stops being the dominant force in the market place – don’t hold your breath – then both Microsoft and Yahoo could be heading down this road again quite soon.

Google TV ads service

No. Google has not set up its own TV station. Though I wouldn’t rule it out (ummm…wonder what odds I could get at Paddy Power….). No, this is another in the huge and ever escalating list of new services introduced by Google that help you (or in this case Americans) get their ads onto the TV.

My first thought was – why on earth should I want Google’s help with that? Surely I’d do the sensible thing and employ an agency to create and place my ad. Ah, yes. But this is America. Well, it isn’t but you know what I mean! In America you get more TV commercials per square inch than you do actual TV programmes. Anyone who has ever visited America and inadvertently turned on the telly will know that after about 20 minutes you begin to reassess your relationship with the BBC and start to consider hermit status as a valid and reasonable lifestyle choice. 

But – back to the job in hand. Google TV ad service. Basically, you have an ad made by an agency and then via the Google service, which looks and operates very much like AdWords, you choose a time slot on a national TV network, pick a programme, choose your budget and off you go. As with all Google services, it does satisfy a real need. It’s simple to use, cost effective and will put a few ad agency noses out of joint. But most importantly it gives you total control and you can instantly target your audience or demographic – say, men over 65 – by using Google’s target audience suggestions tool. So you can be sure you’re getting to the people you really need to watch your ad.

Watch out for its arrival in the UK. We predict interesting times ahead!!