Redmond, Washington-based Microsoft has added online travel comparison and shopping services to its Live  Search Web search engine, and introduced a rebate program that pays United States users money for purchases made using the new Live Search Cashback shopping service, the company announced Wednesday at its Advance08 conference in Redmond. To take advantage of the rebate portion of the new search service a user must be at least 18 years old and sign up for a free account on the company's Web site, which requires providing some personal billing information, Microsoft said. Rebate Program Aims To Help Microsoft Make Gains On Google, Yahoo The new search services came as Microsoft actively sought to increase its share of the Internet search market and as it tries to keep search giant Google from continuing to expand its lead as the most popular online search company, a position it attained largely through a successful online advertising program tied to its search engine. Microsoft's Live Search Cashback program, which the company made available late Tuesday, rewards consumers who use its search engine to purchase certain merchandise from a group of more than 700 participating merchants, including about 14 of the top 40 U.S. retailers, according to a release issued Wednesday. Among the retailers Microsoft has signed on to participate in the Live Search Cashback program are high-tech electronics specialist Newegg.com, bookseller Barnes and Noble, online auction firm eBay, and the following partners:  | Abe's of Maine | | B&H | | | Overstock.com | | Backcountry.com | | | Vitamin Shoppe | | Zappos.com | | | QVC | | Cookware.com | | | Crutchfield | | OfficeMax | | | PetSmart | | Sears | | | TigerDirect.com | | Spiegel | | | The Home Depot | | GiftBaskets.com | | | Foot Locker | | eBags | | | Circuit City | | HP | | | Jockey | | J&R Electronics | | | Office Depot | | Sierra Trading | Microsoft estimated that over 10 million products were available from the participating merchants. Sir Martin Sorrell, chief executive of WPP Group, one of the world's largest communications and advertising holding companies, said Wednesday the new Microsoft program would create incentive for his firm's clients. "Our business is to connect consumers with brands in the most effective and efficient ways. Microsoft’s Live Search cashback creates a real incentive for consumers to connect with our clients," said Sorrell. "We believe this is a major development in the evolution of search marketing and look forward to participating and measuring the results," he added. Rebate Move Tailors Microsoft Search Site To Shoppers And Travelers Microsoft co-founder Bill Gates said the Live Search Cashback "ad-funded cash rebates" would benefit consumers and advertisers alike. "We believe search can offer much more value to consumers and advertisers than it does today, and we see Live Search Cashback as an important opportunity to deliver additional value," said Gates, who delivered a keynote address for online advertisers during Microsoft's annual conference. "Our goal is to make Live Search the most rewarding commercial search destination on the Web," said Gates. "Live Search Cashback will help advertisers drive more online sales while giving consumers a new way to stretch their dollars," added Gates.  The comparison-shopping service that Microsoft platforms and services division president Kevin Johnson announced Wednesday is based partly on work done by a company called Jellyfish.com, which Microsoft acquired in October 2007 for an undisclosed sum. The new rebate search service reveals a company willing to try what is regarded by some analysts as an unorthodox method in its efforts to gain ground on the Google juggernaut. Some Rebates To Top 30 Percent Mark The rebate program pays consumers between about 2 percent and 30 percent of their purchase price on eligible merchandise from the participating merchants if they find it using either Microsoft Live Search or a new "cashback gallery" on the Live Search Cashback site located at http://search.live.com/cashback, and as long as the purchase is made online, Microsoft said. Once a person using the new program has accumulated rebates totaling at least $5, Microsoft will make a payment either by check, eBay's online payment company PayPal, or by direct deposit to a designated bank account. The rebate amount is set by advertisers, Microsoft said, and is held for 60 days until a purchase is made to account for products that may be returned. EBay Inc. president John Donahoe said Wednesday that the Microsoft Live Search Cashback program would bring new value to his firm's customers. "By combining eBay’s marketing expertise and incredible volume and velocity of trade, PayPal’s leadership in online payments, and Microsoft’s Cashback program, we see a great opportunity to deliver more value in the eBay marketplace," Donahoe said. "We’re happy to be partnering with Microsoft on this innovative program," added Donahoe. Searches conducted using Live Search now highlight products eligible to receive a rebate with a small gold coin image, while only eligible results are shown on the Live Search Cashback site. Microsoft said it hopes to turn Live Search into the "premier search engine for the growing category of search queries that help consumers conduct research and purchase goods or services." To Use Pay Per Action Fee System Microsoft has implemented a pay-per-action, or cost-per-acquisition advertiser fee system for the new service, that allows participating merchants to pay only when an online sale has been completed, a system that differs from other forms of online ads such as pay-per-click plans. Microsoft said the  rebates Live Search Cashback will pay consumers help merchants "maximize their advertising investments," and increase sales by giving consumers "an added incentive to buy." In addition to the new Live Search Cashback service Microsoft announced the availability of a new travel Web site called Live Search Farecast aimed at helping people find online travel service bargains. Live Search Farecast is based partly on software developed by Farecast Inc., which Microsoft acquired for some $115 million in April, and although purchases of travel services such as airfares are not included in the rebate program, Microsoft said that it will "explore the possibility of also incorporating an ad-funded rebate option for travel services in the future." Farecast used a search engine-like data-mining algorithm that attempted to predict whether airfares would rise or fall, and offered an accuracy guarantee service on certain fares, before Microsoft purchased the firm. Search Industry Reaction Mixed Members of the online discussion forums operated by WebmasterWorld, a community of webmasters and search engine marketing (SEM) professionals founded by chief executive Brett Tabke, held a variety of reactions to Wednesday's news of Microsoft Live Search Cashback program. One WebmasterWorld member questioned the sustainability of Microsoft's move. "It is interesting that they are trying to take on cashback affiliate sites," the member, using the handle "sem4u," noted. "I do wonder whether this model is sustainable long term. I know of at least one U.K. retailer who is no longer working with cashback sites," the member added. One rival to the new Microsoft rebate program is ebates.com. Several WebmasterWorld members viewed the rebate program as a sign of possible increasing desperation at Microsoft as it continues to loose ground to Google. "This is a desperate attempt for Microsoft," noted a WebmasterWorld member using the handle "Calc Richmond." Those sentiments were echoed by another WebmasterWorld member using the alias "vik_c." "Microsoft is really beginning to appear desperate," the member wrote. "How about spending a little more on developing a better search engine instead," the member suggested. Microsoft did not release details on how long the new rebate program would operate. Related Links:
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