Fathom Online Study Reveals Decrease in Keyword Bid Prices
Fathom Online, a provider of digital marketing services, SEO, and marketing analytics technology, has tracked advertiser keyword bids on search engines for the past twenty-two months. Its studies have revealed that in the second quarter of 2006, the average price bid on keywords has dropped from $1.39 on March 31 to $1.27 on June 30 for an 8.6% decrease. The recent drop comes after a 3% decrease in price during the first quarter in comparison to the end of 2005.
Matt McMahon, VP of Marketing Services at Fathom, emphasized in a statement that, “The search advertising market continues to expand in robust fashion, but individual keyword’s bids fluctuate each day.”
The variation in keyword bids usually depends on the amount of bid competition, as well as other variables. A Deutsche Bank report noted, for example, that some keyword bids spike more than 10% during seasons or times of the year when customers are most likely to buy.
McMahon accounted for the selective bid periods as a result of increased marketing intelligence in online advertising. “Advertisers are now using marketing analytics tools to make smarter advertising spending decisions,” he said.
While the average price of keyword bids has seen a decrease, certain keywords in particularly have seen a noted increase in popularity. Such highly-demanded keywords include “career training,” “mp3 players, “camcorders,” “dsl,” “isp,” “security,” “student loan consolidation,” and keywords relating to pregnancy.
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