Here’s a link to a Marketplace radio commentary that aired yesterday in which I argue that search engines should give you a cut of their ad revenue when you click through on an ad. Microsoft’s cashback system pays you if you click through and buy. But just the act of consuming the ad should have some value even if you don’t buy.
We’re used to thinking of Paypal and Google checkout as micro-payment services, but they can also become micro-compensation services. If you watch a commercial on Google TV, Google could credit your account.
I’ve written a (long) academic article showing how compensated calling could be easily incorporated into the current “do not call” regs — so that you could even set whatever price you wanted to listen to telemarketing calls. (I’ve also published OpEds on the idea here and here.) Instead of making an all-or-nothing choice about whether to block all telemarketing calls, a lot of consumers would prefer to set an intermediate price and just block those calls that aren’t willing to pay their price.
Compensated advertising fits perfectly with Google’s revolutionary model. It gives advertisers even better incentives to make ads relevant for specific consumers. Compensated ads are literally valuable.
Of course you have to worry about moral hazard. Some consumers will insincerely click through just to get the compensation. But advertisers have simple counter strategies to limit these shenanigans — such as limiting the total compensation or blocking consumers who click but never buy.
A bunch of other firms besides Microsoft have started down this path. After my commentary aired, I got an email from the president of mindshare.com. Mindshare will compensate you if you click through on their ads (but it seems you have to accumulate $100 before you can actually retrieve your compensation).
The big question is whether larger services — like Yahoo or Microsoft — will push Google toward a system where consumers can trade their attentions for dollars.
Microsoft’s cashback service is an important step in the right direction.
and 
. You can also watch it on 
Showing me exactly what I was looking for is payment enough. Google can keep the change.
@2: Silvanus – “a fundamental truth about information… it is free until someone puts a price tag on it. Then its called extortion”
So what Professors do is extortion.
Adsense?
And the “Ohhhhh SNAP!” of the day goes to Halle T.
I OUGHT to be paid for having to endure pop-up ads! I spend valuable time trying to find that nearly-invisible “close” button.
I dont understand your point. So every company should pay us some of its profit every time we make them earn money? Google pays you back by giving search results. If it did not give use accurate results no one would use Google. Google also pays publishers with their adnsense programs. The way they “pay” consumers is providing accurate search results and keyword or content related advertising. Fair enough.( for me )
Silvanus: “A fundamental truth about information… it is free until someone puts a price tag on it. Then its called extortion. The unimaginable gains of the Internet are based upon treating information as free.”
No. Information is the most precious commodity there is. Why should anyone give you information for free when they had to spend effort, time, and money to obtain it or to create it? This is why we have a whole section of our legal code dedicated solely intellectual property. By your argument, books, teachers, schools, and professors are all extortionists. So are newspaper publishers, authors, and inventors.
The unimaginable gains of the Internet are based upon people finding a way to to make money off of information in a way that is palatable to the average consumer–i.e., advertising. The Web’s been around for quite a few decades, providing free information to anyone with a connection and a directory. It didn’t take off until the late 90s, when people learned how to make money off of that information.
“I do not tolerate any one I do not know calling me, especially if they are hocking some POS.”
It doesn’t matter what you “tolerate” or not. It’s happening anyway. Walk down the street and you’re seeing an ad, whether or not you tolerate it. Unless you lock yourself up like a luddite/hermit, you’re getting marketed to. Deal with it.
Ian, its been tried a million times and failed every time. Microsoft is the latest to attempt it, and I guaruntee it’ll fail.
Even the most avid- or obsessive- searchers and surfers would pocket maybe $10 or $20 per month. That’s pretty meaningless to people, especially considering the hours they’d have to work to do it.
Its a nice idea in a vaccuum, but you’re not thinking through all of the various things that would have to happen.
You’d have to spend at least an hour per month (or so) managing your account!