A new service has been launched by Microsoft that aims to give users cash rebates on services when Live Search is used.

The company today announced that it intends to offer cash rebates to consumers who find and buy products through a new system called Microsoft Live Search Cashback.

The move is designed to appeal to both consumers and advertisers and the firm believes such a system will add value to both groups.

Chairman of the firm Bill Gates said the company believes search can offer more to consumers and advertisers than it currently does.

And as such, the development of the cashback scheme is one new way to create additional revenue, he said, adding that the scheme has been developed as the company hopes Live Search to become the premier commercial search destination in terms of rewards.

The firm claims that advertisers will see more online sales thanks to consumers being driven to the site, while it will also offer consumers a chance to save money, so is likely to be popular with them.

Mr Gates also said Microsoft is working to make further improvements to Live Search, so that consumers continue to see improved relevance in their searches.

Microsoft claims that the new search product will be a new business opportunity for internet marketing firms and search advertisers and hopes that it will see further growth in search advertising as a result.

Currently, some 68 per cent of online retail transactions begin at a search engine, with some 3.7 billion commercially-centred queries being made each month, the firm claims.

And while internet marketing firms have used pay-per-click marketing to improve search engine optimisation, the company hopes the new Live Search cashback scheme will bring new models that can be used for optimisation and online marketing success.

A recent study for Search Engine Land, conducted by analysis firm Nielsen, found that Microsoft has a 9.7 per cent share of the search market in the US in April 2008.

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