Fathom Follows Keyword Price Drop
For 19 months, online research company Fathom Online has been tracking keyword prices in several vertical industries to determine overall keyword price trends. The resulting Q1 2006 Keyword Price Index (KPI) results reveal that the average keyword bid price has dropped about 3% from $1.43 to $1.39 per keyword since Q4 2005.
This year, Fathom has increased the number of keyword values they track from 4,000 to more than 20,000 in categories like automotive, computers, electronics, finance, telecom, and travel. They believe that the KPI is a good monitor for the overall health of the search marketing industry. Fathom says the Q1 price drop was expected, since keyword prices are seasonal.
Despite the drop, Fathom reports that the average keyword price has actually increased overall by 1.4% since 2004. Even though it fluctuates, the average keyword bid price has settled into a predictable cycle. “Search marketing is growing at a robust 25 percent this year, and price stability helps that growth,” said Matt McMahon, Fathom’s VP of Marketing in a statement. “As advertisers see a more predictable keyword bidding environment, confidence in the channel grows and advertisers continue to invest further in search marketing.”
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