• The New York Times/Silicon Alley Insider, Friday, July 25, 2008 10:48 AM

A search advertising partnership with Facebook is the latest trick up Microsoft's sleeve in the software giant's repeated attempt to try and steal search market share from Google. As The New York Times notes, Microsoft has flirted with several strategies of late, including the failed pursuit of Yahoo, the sector's No.2 player, and a new scheme that rewards users of its Live Search service with discounts.

In Facebook, Microsoft thinks it has found "a promising source of new users," but Silicon Alley Insider's Peter Kafka claims the move will do little to move the search needle in Live Search's favor. According to comScore, Facebook had 16.3 million searchers in June. If every single one of those Facebook searchers started using Live Search to search the Web (which would never happen), that would increase Microsoft's core search base by 23%, Kafka says -- enough to increase Live Search's market share by a few points. A quick look at the search table reminds us that Google has a crushing 61% to 9% lead in market share over Microsoft. A (hopeful) percentage point or two isn't going to change the game.

Nevertheless, the search agreement with Facebook augments an existing ad deal between the social network and the software giant, and certainly strengthens the ties between the companies; Microsoft already handles display ads on Facebook. Last October, the companies got even closer when Microsoft purchased a 5% ownership stake in the social networking giant for $240 million.

Read the whole story at The New York Times/Silicon Alley Insider »