Microsoft is struggling to maintain its 9 percent (and dwindling) share of the search pie (compared to 61 percent controlled by Google — according to the Washington Post) and has come up with a solution that’s bound to shake things up — a whole lot.
Microsoft Chairman Bill Gates announced recently the kick-off of Live Search revenue sharing. Loser says what? Find out after the salta (Spanish word for jump, duh). Arriba Arriba!
So is this the next step in search/revenue economics? Microsoft seems to hope so. Live Search CashBack, as it’s called, allows the seller to determine how much it’s willing to pay to sell something on LS. Usually, that dough would go to the host (in this case, Microsoft). No more, says Gates as his company flails at the Google boys’ success.
I wonder if his minions are flailing to?
So who gets the money? Enter genius: it goes back to the consumer. Bam! And just like that, Google may be screwed. But with only a 9 percent share of search, will it really hurt? Apparently, search/purchasing is only a third of the overall search market. Still, that’s a big enough chunk to make a difference down the road.
And what does Microsoft have to lose on this venture? Well, revenue. But when it’s not getting any right now anyway, it can’t hurt to get the clicks — and convince sellers to use LS instead of Google.
Well played sirs, well played.