Search here, win an iPod!

Live Search will be integrated into Facebook by year's end — part of an extended ad agreement with Microsoft, reports The Register.

Last year Microsoft bought 1.6 percent of Facebook for $240 million, ballooning the site's value to over $15 billion.

The stake granted Microsoft the exclusive right to sell Facebook's US and global display inventory. Yesterday both companies announced the original agreement was extended to include search and search advertising.

Forrester analyst Shar VanBoskirk wryly noted the deal is "a smarter play than bribing [users] … to patronize Live.com."

Microsoft has a long history of "rewarding" Live Search patrons. Last year it launched Live Search Club, which doles points out for playing games that use the search engine. It has also given companies kickbacks for using Live Search at work.

In May it launched a Live Search cashback program for US users, and in July it unveiled Secret Search, a sweepstakes-style incentives program for Australian Live Search users.

It was not revealed whether prizes would be incorporated into the Facebook search model.