• Week ending June 6: 3.43 percent
• Week ending June 13: 4.57 percent
• Week ending June 20: 5.35 percent
• Week ending June 27: 6.63 percent

“Looking at the weekly percentage of U.S. searches for Bing, the search engine has grown at an average weekly rate of 25 percent for the month of June 2009,” Hitwise explains. “Adding in Live.com and MSN Search along with Bing, the combined search engines have grown at an average of 16 percent during June 2009. Bing grew faster than the three other prominent search engines for the month.”

Impressive. But sadly, not enough for Microsoft (MSFT) to make real headway. Because Bing actually ended up losing market share during June, slipping to 5.25 percent from the 5.64 percent it had in May (click on chart below). Meanwhile, Google (GOOG) gained share, rising to 74.04 percent from 73.66 percent in May. And Yahoo (YHOO) gained as well, starting out the month with a 15.55 percent share and ending it with 16.19 percent.

Last Tuesday, at around 5 PM, Internet users across mainland China began reporting problems accessing popular social networking sites, such as Twitter.com, the Yahoo (YHOO)-owned photo-sharing site Flickr.com, and Microsoft’s (MSFT) Live.com, Bing.com and Hotmail. The sudden unavailability of these sites led many Internet users to suspect that they had been blocked due to sensitivities over the 20th anniversary of the Tiananmen Square crackdown on June 4. And on Wednesday, dozens of Chinese Web sites also announced that they would be closed for technical maintenance for several days.

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Quite a gimmick, though Live Search Senior Director Frederick Savoye says SearchPerks, like Cashback, is actually part of Microsoft’s (MSFT) grand plan to “innovate the [search] business model.” If that’s so, the company might want to rethink it. Because Cashback really hasn’t done much to bolster Microsoft’s laggard search service, which remains a very distant third in the search market. According to Nielsen Online’s MegaView search ranking for August, searches on MSN/Windows Live declined 23.8 percent year-over-year. Its August 2008 share of the search market: 10.7 percent.

A 23.8 percent YoY fall in searches doesn’t seem like much of an innovation to the search business model. And with its search market share in decline, Microsoft clearly needs something more than a steady stream of gimmicks to stem the bleeding. Said Collins Stewart Internet analyst Sandeep Aggarwal: “Internal initiatives at [Microsoft] need time to lift off and prove their merit, but sooner or later the company will have to face the realities and decide again if a combination with [Yahoo] can speed the process.”