Yesterday, Microsoft said it would continue to expand its rewards program designed to incentivize consumers to use its Live Search product. Today, analysts are wondering if the software giant and would-be advertising titan isn't reeking of desperation.

The expanded program, which is known as SearchPerks, works as a kind of "frequent fliers" program adapted for a search engine. Users get one "ticket" for each search on Live. Those tickets will be redeemable for discounts and giveaways.

But bribing users to search may not be what Microsoft needs, according to Sandeep Aggarwal, an analyst at Collins Stewart.

"Our preliminary reaction is that SearchPerks will likely result (in) a sub-standard outcome," Aggarwal wrote in a report Thursday. "In our view, attempts like this one can in fact hurt Microsoft's reputation in the eyes of end-users and advertisers."