Without the influx of Web traffic that Microsoft bet would quickly follow a Yahoo buyout, the software maker is facing a faraway slog whether it wants to turn its money-losing online services business into a Google-killer.

Since it withdrew a $47.5 billion (EU31 billion) bid for Yahoo Inc. after talks collapsed, Microsoft Corp. has offered little insight into what “Plan C” will entail. In that vacuum, experts are scraping the bottom of the barrel for ideas, with many concluding that they actually don’t know what could get Microsoft out of its pickle.

It is not clear Microsoft can do that alone — and in fact, it’s not always clear what “this” is. Some analysts say Microsoft must increase its search traffic to attract advertisers. Others believe Microsoft should concede that market to Google Inc. and find success elsewhere — leapfrogging rivals in areas such as display and mobile advertising.

All that is clear is Microsoft must come up

with a Plan C soon, after acknowledging that its Plan A of going solo was troubled, forcing it to turn to Plan B of acquiring Yahoo.

Part of the problem analysts face predicting Microsoft’s next moves is that the company has already tried the obvious tactics. It built its own search-ad platform from scratch and spent $6 billion (EU3.9 billion) to buy a major online advertising company, aQuantive.

Microsoft overhauled its search engine technology, and most analysts agree that its results are at least as good as Google’s. It tweaked the design of its Live Search service to become more like Google. It touted its improvements on billboards and in glossy magazines.

Last year, the company seemed confident that it wouldn’t take much to convert the hundreds of millions of Hotmail users, Xbox Live-connected video gamers and Windows Live Messenger chatters into a flood of search traffic.

“We’ve done…

Orginal post by Top Tech News