Microsoft, perturbed over recent developments between Yahoo and Google, is making a vigorous attempt to snatch part of search advertising market from Google. As part of its strategy, Microsoft announced launch of Live Search Cashback, which will offer cash rebate to consumers who purchase products on Live Search.

Announcing the goals of the Live Search Cashback project, Chairman Bill Gates explained that Microsoft aims to provide an important opportunity to its consumers and advertisers to gain additional value for their search than what they have been getting so far.

There are 700 merchants including top retailers like eBay who are offering 10 million products for online sale. According to analysts from EMarketer, taking advantage of phenomenal rise in the online retail transactions in recent times, Microsoft will try to capitalize and consolidate its gains through Live Search Cashback offer.
 
With this offer the advertisers will be attracted to the cost-per-action (CPA) form of search advertising. Under this scheme, advertiser is supposed to pay the customer only when actual purchase transaction takes place. This is more reliable way to analyze investment than paying the customer as per cost-per-click (CPC) scheme just for clicking on an advertisement without making any purchase.

Microsoft is expecting to attract more consumers and advertisers to win back sizeable market share from Google.