by Ina Fried
May 7, 2008 2:00 PM PDT

Microsoft hopes to back up its refrain that it has a plan to catch Google by showing off some improvements to its Live Search product at a company-sponsored advertising conference later this month. "We will start to show you the next version of the search," Chairman Bill Gates said in comments to reporters in Japan Wednesday, promising that Microsoft had some exciting things up its sleeve.

The comments were included in a partial transcript provided by Microsoft. The spring update is also expected to include new types of vertical search and improvements in overall relevance of search queries, according to a source familiar with the company's plans. Specifically, Microsoft is expected to add to the shopping-specific search tools that debuted in its Fall 2007 release.

Microsoft has also been working on a new look for its Live Search product, which went live this week. The company has struggled to make headway in search, particularly in the area of being the place that consumers go for general Web queries. Microsoft has been a distant third in search, accounting for 9.4 percent of core U.S. search queries in February, according to ComScore. Google, held a 59.8 percent share, while Yahoo was second, with 21.3 percent.

Many of Microsoft's recent changes have centered around improving specific types of searches, such as image search, celebrity tracking, and medical searches. The company is also focusing a good deal of energy on trying to build "search experiences" into its various Web products. Windows Live General Manager Brian Hall reiterated that's Microsoft's approach in a speech to investors on Tuesday.