Internet Search - better than Free ...

Jellyfish, an online shopping cash-back service purchased by Microsoft last year forms the foundation of a new search engine advertising model the company is expected to announce at its Advance08 conference this week. The new MS LIVE platform, called "Live Search Cashback," will enable allow users to get cash back from purchases made by participating advertisers on a variety of merchandise. In contrast to Google's virtual monopoly on the pay-per-click model, Microsoft will share part of the fee collected from the advertisers to incent users to move forward with a purchase. Conceptually, this is no different than a manufacturer offering rebates at the retail point-of-sale level through the channel and to the end customer. Microsoft takes the risk of running the ad by changing the model to CPA (cost-per-action) from CPC (cost-per-click, aka PPC, pay-per-click). Microsoft's recent re-engagement with Yahoo, specifically its search business, potentially provides advertisers enough inventory to make this a viable service. Maybe these "stimulus checks" from Microsoft will keep our economy going this year!