Desktop and mobile search ad formats comprised 48% of the $72.5 billion revenue from U.S. digital advertising last year.
Unfortunately, Microsoft’s Bing search engine is still a far second to Google search.
The indirect payment scheme from Bing Rewards is effective in compelling people to use Microsoft’s Bing instead of Google or Yahoo Search.
The more people who use Bing on mobile and desktop computers, the more attractive Bing Ads will be to advertisers.
Microsoft is the global leader in SaaS. However, cloud or digital advertising is a much bigger industry than SaaS.
The hot topic of the day is Microsoft’s (MSFT) expansion of its Bing Rewards program to the United Kingdom. Bing Rewards is Microsoft’s clever way of paying or rewarding people who use its Bing search engine or Edge browser. This incentive-based tactic to gain more users for Bing is a necessary expense. Paying or rewarding web surfers falls under the total acquisition cost of recruiting long-term users for Microsoft Bing.
Attracting advertisers to sign-up for Bing Ads requires Microsoft to build a sizable population active Bing users. Like Google’s AdWords, Bing Ads is a Search Engine Marketing-heavy platform. Search Engine Marketing drives traffic to websites and e-commerce portals.