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Home » May 11, 2005 – April Search Keyword Prices Rise

May 11, 2005 – April Search Keyword Prices Rise

Note to Editors and Analysts: Fathom Online KPI tracks the price of keywords for the purpose of providing advertisers with background and benchmarks for comparison to their individual advertising campaigns. The data is not intended for creating financial assumptions related to search engine industry revenues.

Online Auction Is Attractive to Advertisers

San Francisco, May 11, 2005. The prices that advertisers paid to buy search engine keywords increased on average 11 percent from April 1-30, according to the Fathom Online Keyword Price Index™ (KPI™). The data indicates that online auction of keywords is attracting more advertisers who are learning how to maximize their ROIs by taking advantage of seasonal opportunities when consumers come online with a strong intent to buy.

For instance, the Finance-Mortgage vertical remains strong, rising 20 percent to $6.49 per keyword on average. Clearly, homeowners are still refinancing and new mortgages are being purchased at a fast clip. Banks and mortgage lenders who are seeing their advertisements lead to profitable sales continue to purchase keywords.

The Telecom Wireless category moved upward rising six percent in April from $.95 per keyword to $1.01, this following a 23 percent rise in March. Broadband also came to life in the last two months, rising 13 percent monthly.

The Travel and Hospitality and Automotive sectors showed marginal movement each dropping one percent indicating that advertisers are finding opportunities to continue to spend against these sectors.

“Advertisers monitoring the marketplace for buys in the travel and automotive categories found some good values for their clients,” said Chris Churchill, Fathom Online CEO. “While price is important, advertisers must understand that conversion rates continue to be the governing factor in how much marketers decide to pay, and that conversions can be seasonal as well.”