Average Keyword Price Up Slightly in Q4

March 1, 2007

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Digital

The average keyword price paid by online advertisers rose just 2 percent in the fourth quarter of 2006, to $1.51, from $1.48 in the previous quarter, writes eMarketer, citing Fathom Online’s Keyword Price Index.

The average keyword price increased only 4 percent from $1.45 in 4Q05 – and nearly 18.9 percent from mid-year, when the average price was $1.27 as of the end of 2Q06, according to Fathom.

“Continued strong demand from advertisers increased keyword prices in the fourth quarter of 2006, but the rise was much smaller than in the third quarter” (when the average price shot up to $1.48 from the second quarter’s $1.27), Dean DeBiase, CEO of Fathom Online, is quoted as saying.

“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,” DeBiase said.

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