Average Bid is $1.27 for Keywords, Down 8.6 Percent
San Francisco, July 18, 2006. In the second quarter of 2006, the average price that advertisers bid for keywords on search engines dropped 8.6 percent from $1.39 on March 31 to $1.27 on June 30. That drop follows a three percent drop in Q1 2006 to $1.39 from $1.43 at the end of 2005, according to the Fathom Online Keyword Price Index™ (KPI™). Fathom Online has tracked keyword bids consistently for the past 22 months.
“The search advertising market continues to expand in robust fashion, but individual keyword’s bids fluctuate each day ,” said Matt McMahon, VP Marketing Services at Fathom. “Advertisers are now using marketing analytics tools to make smarter advertising spending decisions.”
Individual keyword bids vary widely day to day, depending on the amount of bid competition and other variables affecting search advertising bids. In some categories, for instance, keywords spiked dramatically. Some of the higher fliers include:
• “career training” increased 286%
• Select keywords relating to pregnancy increased 111%
• Consumer electronics keywords “mp3 players” and “camcorders” increased as much as 225%
• Words such as “dsl”, “isp” and “security” increased 50% to 80%
• “student loan consolidation” increased 40%
According to a recent report released by Deutsche Bank, marketers surveyed noted seasonal spikes in keyword bids of more than 10 percent at times of the year when their customers are most likely to buy. Recent findings from the Consumer Confidence Index and the University of Michigan Consumer Sentiment Index report lower results this quarter compared to the last one.
Methodology. Fathom Online tracks keyword bids through its Triton data collection, aggregation and reporting platform. The keyword list for the KPI contains 20,000 generic keywords across 12 categories. Evaluated on select search engines, keyword averages are reliable indicators for media buyers, but are not to be considered proxies for the financial state of the search industry.
Categories tracked include: Automotive, Computing, Consumer Services, Electronics, Finance Investment, Finance Mortgage, Health, Media and Entertainment, Retail, Telecom Broadband, Telecom Wireless and Travel and Hospitality
Fathom Online publishes the Keyword Price Index™ from time to time including occasionally tracking and publishing keyword bids associated with events and holidays of interest. Fathom research clients have access to the complete data set including both the category data and the raw data.
About Fathom Online
Based in San Francisco with offices in New York and Chicago, Fathom Online is a leading provider of digital marketing services, search engine optimization and marketing analytics technology. Fathom’s customers include leading consumer, B-to-B and ecommerce advertisers, agencies and media companies. www.fathomonline.com
