Pay Per Click Search Keyword Prices Drop in 2006
According to a report released by Fathom Online, search engine marketing PPC keyword prices have dropped in the first quarter of 2006. For example, Fathom says that the average keyword bid has dropped from $1.43 in Q4 of 2005 to $1.39 in Q1 2006.
Fathom Online has tracked keyword prices consistently for the past 19 months and significantly expanded the Index this year. Following on the Q4 2005 holiday season, the drop in bids was not surprising given the seasonal nature of advertising.
Overall, the average bid has increased 1.4 percent since the September 2004 inception of the KPI when the average bid was $1.37. Although prices often vary dramatically day to day, average bid prices have settled in to a predictable range.
“Search marketing is growing at a robust 25 percent this year, and price stability helps that growth” said Matt McMahon, VP Marketing Services at Fathom. “As advertisers see a more predictable keyword bidding environment, confidence in the channel grows and advertisers continue to invest further in search marketing.”
