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Average keyword prices show slight increase
The prices paid by internet marketers for keywords in search ads rose in the fourth quarter of 2006, although the gain was not as marked as that in the quarter before.According to Fathom Online's keyword price index, the average keyword price paid was up by two per cent to $1.51, on the back of "continued strong demand from advertising".
However, the rise was small in comparison to that seen in the third quarter, when prices jumped by some 16.5 per cent to $1.48.
"The traditional spending slowdown at the end of December and the growing importance of ad quality and placement accounted for the smaller increase compared to the third quarter of 2006," Fathom Online's chairman, Dean DeBiase, explained.
He also noted that advertisers are focusing more on quality and improving click-through rates.
"The quality of the keyword buy - its effectiveness in drawing the interest of end users - is clearly rising in importance," he said.
Keyword search ads are a vital part of a growing number of businesses, as managers begin to understand the benefits of cheap and effective internet advertising.
Google AdWords is the most popular system used and Yahoo is set to unveil its own improved ad system, Panama, on Monday (February 12).
Online Advertising news posted on 09 February 2007
