BBC News (and just about everywhere else) is reporting that:
Microsoft is offering “cold, hard cash” to persuade users to shop online using its Live Search engine and help the company catch up to rival Google.
The savings range between 2% and 30% on products sold by select retailers through its so-called cashback service.
Microsoft’s new site is seen as an attempt to convince advertisers it can combat Google’s increasing share of the online ad market.
“2008 is the year that search got competitive,” said Bill Gates.
No kidding — Microsoft has decided to use their deep pockets to buy some market share. From their point of view, either they get more people using their search, and then figure out how to monetize it later, or, if that doesn’t happen, they at least put Google in a situation where customers and advertisers start asking Google for similar incentives, something that I doubt Google appreciates.