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Microsoft Plans Service to Sell Internet Search Ads

The service will be similar to competing programs from Google Inc. and Yahoo! Inc. Microsoft will announce a pilot program March 16, said the people, who asked not to be identified. These paid searches auction off placement next to Web search results to companies with related products.

The goal for Microsoft is to capture more revenue and more control over the entire product,'' said Alan Davis, an analyst at Seattle-based McAdams Wright Ragen, which manages $2 billion including Microsoft shares.

MSN also will provide tools to advertisers to help them determine what search keywords to purchase and what type of ads are best for targeting their customers, one person said. The company wants to be able to sell a variety of different ads and services to customers, the person said.

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