On the other hand the cashback program offers an advantage for advertisers in that they only have to pay when they sell an item, known as a "pay-per-action" fee. It also avoids the problem of click fraud, or bogus clicks, Which is being controlled with better algorithms by the likes of Google and other PPC Pay-per-click Providers. The PPC also provides another benefit over PPA. Site visitors. PPA might only bring visitors only if you have lowest prize on Live site. Making People aware of what you are selling is also a part of advertising.
So this might be a solution for small business to harness some spending during these cash strapped times.
With the U.S. economy slowing, Microsoft's cashback program may be more appealing to advertisers with smaller budgets who only want to pay for completed transactions rather than for click-throughs from Google ads, said Mike Davis, senior analyst for Ovum in London.
HOW IT WORKS
Users who sign up for accounts will be able to search for eligible products on the Live Search cashback site, or look for special icons next to search results through the main Live Search engine.
When users click through to a merchant's site and buy eligible products, a designated percentage of the purchase price -- ranging from about 2 percent to more than 30 percent -- will be deposited into their Live Search cashback accounts.
Refunds will accumulate in the account and be available via direct deposit to a bank or PayPal account, or by check. The Microsoft site lists conditions for payout, including a $5 minimum balance. It also references a 60-day waiting period after purchase to account for the possibility of returns.
Microsoft will charge merchants for the Live Search cashback advertisements only when a user makes a purchase.