Microsoft has invested in web analytics developer DeepMetrix.

Deepmetrix was founded in 1992 and has its headquarters in Gatinea, Quebec. The company develops a range of software applications including graphical bulletin boards, online client-server applications for Windows and network monitoring tools. But it is its Deepmetrix’s LiveStats-branded website traffic analysis tools that have caught Microsoft’s eye.

The software serves up real-time detail of website visitor activity – useful information for guiding website design and content and gauging the success of online campaigns.

The company’s LiveStats technology is organized into three product lines: LiveStats.Biz, a complete hosted enterprise website analytics solution incorporating conversion rates, visitor segmentation, commerce, CRM and data mining; LiveStats.Net, a hosted or installable web statistics tool aimed at SMBs; and LiveStats.XSP, a simple but scalable web log analyzer designed for service providers that want to deliver web statistics to their customers.

It’s likely these LiveStat technologies will be absorbed into future releases of adCenter, Internet search, Office Live and MSN to deliver web analytics. All these products come under the wing of Microsoft’s MSN Internet division.

The synergy with these products is obvious. For example, adCenter is used to track ad campaign performance and report results.

Deepmetrix’s customers include 7up, Subaru, Virgin and US basketball franchise Portland Trailblazers. Over 5,000 service providers also use LiveStats.XSP.

It’s certainly taken a while for the leading search vendors to wise up to the importance of metrics in search.

Arguably, Microsoft’s swoop is a direct response to search rival Google’s move into the web analytics space late last year following its acquisition of Urchin Software. Google has since launched a free hosted web analytics services (Google Analytics) of its own.

All eyes will now fall on the third big search player, Yahoo!, to see if it responds in kind.