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When Microsoft announced the launch of its Live Search Cashback rebate program, it quickly became the laughingstock of the tech blogosphere and this week's launch of Live SearchPerks definitely did not help. However, according to the latest data from Hitwise, Microsoft's Cashback promotion is actually working and is helping live.com to keep its search traffic stable, even as Google's market share is rising.

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Live Search Cashback works by giving users a certain amount of money back every time they search for an item on live.com and then buy it from a participating store.

In July, Live Search Cashback represented 3.75% of traffic to live.com, but by September 27, that number had grown to 6.29%. According to Hitwise, visitors to the Cashback site were more likely to be female (55% vs. 45%) and half were between 25 and 45 years old with an average income of under $100,000.



Sign of the Times?

As Hitwise also points out, part of this interest in the Cashback program might have to do with the current economic crisis in the U.S., where shoppers are more likely to start looking for bargains and cash back programs.

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