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Microsoft Is Offering Shoppers 'Cold, Hard Cash'

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By JESSICA MINTZ

The Associated Press

Published: May 22, 2008

REDMOND, Wash. - Microsoft Corp. is offering cash rebates when people make purchases after using its search engine as the software maker begins to reveal how it plans to take on Google Inc. following the failure of its $47.5 billion bid for Yahoo Inc.

Analysts and investors have been eagerly awaiting details about "Plan C" after Microsoft acknowledged that its Plan A of going solo was troubled but also withdrew its Plan B - acquiring Yahoo - because Yahoo executives sought more money.

Under the cash program revealed Wednesday, Web shoppers who sign up for an account and buy items found using Microsoft's Live Search cash-back site will receive a percentage of the purchase price deposited into their account.

When the total reaches $5, the shoppers can redeem their "cold, hard cash." In a statement, Microsoft said the rebates are paid for with advertising.

This isn't the first time Microsoft has resorted to buying search traffic. The software maker has tried offering large companies software and services credits for every employee who used Microsoft's search engine at work.

Microsoft also developed a collection of free games last year that triggered a Web search with every play. Players could rack up points and exchange them for prizes, including software, Xbox consoles and Zune media players.

The tactic - more common among fledgling or niche search engines trying to make a splash - may not make much of a difference, if the past efforts are any indication. The corporate bounty program remains in pilot phase and the games only temporarily boosted its search share.

Danny Sullivan, editor of the search news site SearchEngineLand .com, said in a recent interview that he recommended Microsoft pay people to use Live Search - as an April Fools' Day joke. Microsoft, however, is under very serious pressure to boost search market share.

In the absence of a coherent Plan C, Microsoft is said to have revived talks with Inc. on a more limited search and advertising deal, but executives didn't mention the Y-word at the first full day of an annual conference for advertisers and ad agencies at its Redmond headquarters.

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