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May 20, 2008 10:42 PM PDT

Microsoft looks to buy way into search (again)

by Ina Fried

Updated 11 p.m., with details from Microsoft's Live Search site.

REDMOND, Wash.--Microsoft is looking to buy its way into search, and I'm not talking about Yahoo.

The software maker plans on Wednesday to launch a cash back program to those who buy things after using its search.

Microsoft has details of the program up on its Web site, including a list of frequently asked questions.

"We want to earn your loyalty and reward it with cashback savings for your everyday online shopping," Microsoft said. "We are 'The Search That Pays You Back!' "

As previously reported, Microsoft is due to show off its latest enhancements to its search product at the Advance 08 advertising conference here. Microsoft Chairman Bill Gates is set to offer the main address of the event on Wednesday. I hear the company has more than just the cash back effort up its sleeves.

In any case, it's not the first time Microsoft has tried to use financial incentives to boost its search share. It has run a number of programs including its Live Search Club that offer rewards for those that use its search.

The Live Search Club effort briefly boosted Microsoft's search market share last year, but the gains have proved short lived. Microsoft has been losing ground since then and has returned to a single digit share of the market.

The news was reported earlier Tuesday by Search Engine Watch and the Seattle Post-Intelligencer.

According to the reports, Live Search Cash Back, is based on Microsoft's acquisition last year of Jellyfish, which has been piloting such a program, the reports said. Jellyfish said on its Web site Tuesday night that it was "currently offline to perform necessary service upgrades and enhancements."

Meanwhile, there's still no word on Microsoft's other, more expensive effort to buy search market share.

It's worth noting the fact that to get cash back users have to create an account and be logged in, presumably becoming a more valuable advertising customer for Microsoft as well.

Do you think this helps or hurts Microsoft's credibility when it comes to search?

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.
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by coryschulz May 20, 2008 11:21 PM PDT
Man.... things like this make me realize just how great Google is and how Microsoft really has no chance of catching up with them.
Reply to this comment
by Imalittleteapot May 20, 2008 11:50 PM PDT
Yeah, what you said.
by turoa76 May 21, 2008 1:06 AM PDT
This just smacks of desperation.

What's their next ploy. An advertising campaign along the lines of: "Pretty pretty please use our search engine. We'll love you forever. Promise."
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by shoonya May 21, 2008 2:20 AM PDT
I don't see an issue with it - Didn't Google had Cash incentive for their Google Checkout , how is it different from that ?
Reply to this comment
by aterianus May 21, 2008 3:40 AM PDT
Yes, and i think i used Google Cash exactly once. I must agree with the article it's a very short lived trick unless they can really find a way to make their product better (and different) than Google's.
Reply to this comment
by mayadanteamihan May 21, 2008 7:09 AM PDT
Oh yuck, what a waste of time, energy and money. Can't they think of something more ingenious?
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by Penguinisto May 21, 2008 2:45 PM PDT
They haven't been able to think of anything ingenious since the 1990s... what makes you think they're about to do so now? ;)
by wolivere May 21, 2008 9:02 AM PDT
Neither hurts nor hinders. Its typical bussiness when you enter a market place with a well entrenched competitor to offer incentives to try your product.

I'm trying to think what else can you do with search? Google jumped on the bandwagon through advertisement. But, personally I'm not happy with it.

SO many of my search's take me to bogus sites when trying to find things. Example today Basement reonvation took me to many other sites that *List* Reonvation companies, which then link me to another list and so on and so on. All getting paid on click through traffic.

In the end I picked up the local yellow pages to find what I wanted.
Reply to this comment
by ralfthedog May 21, 2008 10:39 AM PDT
Microsoft is rapidly becoming less relevant. They are a sucess in the OS and Office market (for now), however the only other market they have come close to scoring a victory in is the game market and they loose money left and right in it.

Microsoft should focus it's effort into cutting features from it's current Operating systems and office packages to make them smaller and faster.
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by Manhattan2 May 21, 2008 10:58 AM PDT
Tell Microsoft they will find search relevance in Sensible Ventures. GPS Advertising is the answer.
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by vasanisalim May 21, 2008 11:04 AM PDT
Microsoft should just say bye bye to search and focus on its core competencies. It has enough on its plate to continue to be profitable.
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by BrianDuper May 21, 2008 2:30 PM PDT
There is already a site that compares Microsoft Live Search Cashback Product Prices to the other popular comparison sites .. amazing how fast the web adapts:

http://www.startjoint.com/shopcompare.aspx
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by DanFerrer May 21, 2008 8:42 PM PDT
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by DanFerrer May 21, 2008 8:46 PM PDT
It seems Microsoft is doing the right thing from a competitive company pespective - trying to beat Google where it hurts the most, especially considering it is a 'one product company' - if it damages Google'search business it will seriuosly compromise its profitability ... no wonder why Google invests so much (20% of their engineers ) time trying to find new niches ... anyway, I'd like to see Microsoft or any other company challenging Google - I do believe this Search Monopoly is not good for anybody.
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by DanFerrer May 21, 2008 8:46 PM PDT
It seems Microsoft is doing the right thing from a competitive company pespective - trying to beat Google where it hurts the most, especially considering it is a 'one product company' - if it damages Google'search business it will seriuosly compromise its profitability ... no wonder why Google invests so much (20% of their engineers ) time trying to find new niches ... anyway, I'd like to see Microsoft or any other company challenging Google - I do believe this Search Monopoly is not good for anybody.
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During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft.


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