San Francisco, CA, October 10, 2005--Since September 2004, when Fathom Online first published its Online Keyword Price Index, keyword prices have increased on average from $1.37 to $1.44. When the simple averages are weighted to remove the effects of the disparate price ranges, the weighted average increase is 19%.
Overall, the yearly data demonstrates more volatility when viewed by category. For instance, in the Consumer Services category which includes education, fitness and entertainment, keyword costs increased 78% and the Finance Investment category dropped 17%. The averages provide a benchmark for media buyers and search firms giving advertisers insights as to where buying opportunities can be leveraged.
“As the search marketing industry continues to surge, it is developing exciting new technologies and strategies to cope with rising competition for, and increased costs of, keywords,” says Gregg Stewart, SVP Channel Management and Marketing, Fathom Online. “Conversion optimization is the best antidote for rising keyword prices, so smart marketers are tackling optimization head on. Nevertheless, keyword prices are still an important benchmark for advertisers seeking greater return on their dollars.”
Automotive advertising keyword prices stayed virtually flat for the year despite a 10% drop this September as the industry was buffeted by a spurt in fuel prices and concerns about SUVs as gas guzzlers.
The Finance-Mortgage category that was red hot most of the past year continues to cool with a drop in September 2005 of 11%, but still earns honors for the highest keyword prices at an average of $3.39, seven percent more than one year ago. In the telecom verticals for the year, Wireless was up 12% and Broadband was down 14%.
Fathom Online tracks keyword prices daily to spot trends and to provide its clients with advantageous buying opportunities. The keyword list consists of 500 generic keywords across eight categories for the top five ranked positions on selected search engines. The pricing fluctuations measured by the KPI should be viewed in the context of the eight categories reported and not as a proxy for the entire search industry.
Based in San Francisco with offices in New York and Chicago, Fathom Online is a leading search engine marketing (SEM) specialist that offers end-to-end solutions for advertisers and agencies. Fathom's advanced data collection platform and software technology generates a customized strategic approach for each customer's search engine marketing plan including: campaign launch, performance analysis, conversion optimization and media reconciliation. Fathom's customers include many well-known blue-chip companies.
