Microsoft plans to follow the Live Search Cashback service announced this week with a series of other new features designed to draw more traffic, to be rolled out every spring and fall.

"'Cashback' will be the major new release for this spring," a Microsoft spokesperson told BetaNews today, during a press event in New York City.

Microsoft Chaiman Bill Gates announced Cashback yesterday in Redmond, Washington, at the Advance 08 conference for online advertisers.

But at a multivendor press event today in Manhattan, focused mainly on providing press previews of products for the 2008 December holiday season, Microsoft showed journalists how Cashack rewards people who use Live Search for online shopping with cash refunds on part of the price of items purchased.

"These refunds are coming directly from Microsoft, not from the companies selling the products," pointed out the spokesperson.

As previously reported, Microsoft has consistently landed in third place behind industry leader Google and runner-up Yahoo in search engine rankings compiled by analyst firms such as Comscore.

In recent weeks, Microsoft officials have articulated the need to build up the company's online search and advertising capabilities as a top priority, regardless of whether Microsoft pins down some sort of a deal with Yahoo.

At the press event in New York City today, BetaNews asked the spokesperson why Microsoft has now decided to give cash refunds to online shoppers. Previously, the company offered prizes for those who played games on Live Search Club that indirectly led to more Web searches.

"As Bill Gates said yesterday, Microsoft wants to create customer loyalty for Live Search," we were told.

:www.betanews.com