Microsoft fields a search service that routes the advertising dollars to the users that click through and buy stuff. Just because they can … and see below.
The Empire Strikes Back: Our Analysis Of Microsoft Live Search Cashback
The first thing I thought when I saw Live Search CashBack was that Microsoft is hitting Google where it hurts, in exactly the same way that Google is hitting Microsoft with their free online Office offerings. Google isn’t making much money on Docs, but it sure threatens Microsoft’s core revenue stronghold.Similarly, Microsoft isn’t likely to make much profit on Live Search Cashback, since they are giving most of the money back to users. But it hits Google in its sweet spot - commerce search. And it may have a bigger impact and a faster impact on Google than people realize. Docs is a still a future revenue threat to Microsoft - Live Search Cashback is taking money out of Google’s pockets today.
