4 Comments

Microsoft launch CPA based search/cashback offer

May 21, 2008
by

I’ve only got a few moments for this, but this is an interesting development to follow: Microsoft is offering a cashback for search plan, where advertisers work on a CPA basis.

The basics of this are that users search using Microsoft Live’s cashback site, and when they buy, they are “credited” with funds which can be withdrawn after $5 has been accumulated. The funds are paidout via PayPal, check, and possibly other methods.

Advertisers who sign up are charged on a CPA basis, so search isn’t the key, but the purchase action off search provides the value. Microsoft provides a lead-in for advertisers:

Advertise at Live Search cashback

  • Risk-Free: Pay Only for Sales
  • List Your Products at a Fixed CPA-locking in Your ROI
  • Set your Commissions by Category or SKU
  • Easy Set Up

There’s also a visual tour of using the Live Search cashback at searchengineland.

This is not some small startup trying to buy marketshare, it’s Microsoft, so this is a development worth watching. I’ve got a few questions myself to see how this plays out:

  • Can user search behavior be bought?
  • How much money will it take to change a user’s search behavior?
  • Where is the relevance threshold where relevance has a utility point equal or lower than the “get paid” utility point?
  • How much of this data will Microsoft be willing to share?

I’ve worked on projects with Microsoft and their incentive marketing programs, so I have high confidence that this was a well thought out and deeply planned trial. I can’t wait to start seeing the feedback from users getting paid and the success stories from advertisers.

About Duane Kuroda

Business ninja, deal hunter, Internet marketer, and technology fiddler obsessed about growing companies and launching products. Currently at Peerspin, Duane’s past lives include Vice President of Marketing roles at companies leading micropayments, Internet video, and online communities as well as research and consulting for mobile advertising. Duane has spoken at conferences including Digital Hollywood and Digital Video Expo on topics covering monetizing online content and online video, has appeared on TechNowTV and KNTV, and has been quoted in various magazines. Follow Duane on Twitter: @dkuroda.

Filed under: Online Marketing
  • http://www.experienceadvertising.com Evan

    Very interesting..thanks for posting…

  • http://www.evenitysolutions.com Jawed Ahamed

    Excellent article, this idea from MSN would bring some user towards MSN.

  • http://www.johnjoubert.com John

    Very interesting post! I wonder if this approach is going to payoff in the long run…

  • http://www.rhinofish.com Pat Grady

    (off topic / subject for sure, but inspired by the content posted here)

    everytime I see something like "work on a CPA basis"… i think about NY tax thing…

    "Advertisers who sign up are charged on a CPA basis"… so MSN is earning ad income on on a volume basis… NY tax law says that means it's not an "ad"… if they have people in NY, I think these advertisers, if they do much biz in NY, would then need to collect sales tax for all sales they make in NY.

    I've got nexusitis, a new mental distraction disorder triggered by the keyword "cpa"… it's sorta like Tourette's in reverse… I get curse words in my head, aimed at NY legislators, when I hear or read about legally defining things based on volume, to not be ads…