I’m not certain this is anything to be concerned about, but could be something to keep an eye on. The new HP Microsoft Live Cashback Toolbar that was demonstrated Thursday and will be shipped on all HP PCs at the 1st of the year, sounds pretty parasitic to me. If it does what the quote below suggests, then I’m sure Google won’t stand for it for long.

Microsoft defends search investments to analysts - “HP will preset Live Search as the default search engine on PCs shipped in the U.S. and Canada starting in January. The PC maker will also install a special Web browser toolbar, demonstrated Thursday, that can tell when Web shoppers are searching on Google for certain products, then lure them to Live Search for a rebate.”

I was scanning some blog feeds this weekend and saw this:

Microsoft Announces Plans for Live Search and Cashback - “I think affiliates of all types (including coupon code sites, competing rewards programs, and other advertisers) are going to be livid at this decision to preinstall MS’s toolbar as it will potentially interfere with their income.”

Here is the Live Search Cashback site. If consumers go to that site and shop to get a rebate, I don’t see a problem with it. It’s the toolbar that could be an issue. I don’t see mention of a toolbar yet. Possibly I missed it or maybe the toolbar will only be available on the HP PCs?

Depending how and where the reminder is triggered I imagine this could cause some controversy. If an HP surfer does a direct type-in to Shoes.com, is the reminder going to pop letting them know that ShoeMall offers a 19% rebate and has free shipping?

So if I’m interpreting this right - an affiliate could be optimized high in natural search in Google or have an Adwords ad for shoes, let’s just say the merchant is Zappos. The affiliate is positioned on Google to grab the attention of the consumer. When the consumer that’s shopping on their new HP searches on Google for “tennis shoes” they see the affiliates ad but before they can click, the Microsoft Live toolbar pops a reminder that they can get 9% Cashback if they shop at Zappos through the Cashback Toolbar? (That’s the rebate Zappos currently pays.)

An even more important question for affiliates… Lets say you are a Shoemall affiliate. An HP surfer clicks your link and eats your cookie. The surfer gets a Live Cashback reminder when he goes back to Google to shop around. The toolbar tells him he can save 19% by shopping through the Cashback program. The customer with YOUR affiliate cookie buys through the toolbar. I doubt that Shoemall can give the 19% toolbar rebate AND pay the affiliate 15%. So??? Not trying to start any conspiracy toolbar theories here, just saying it’s something to watch.

Here’s a list of hundreds of participating cashback Stores that are listed so far.