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Keyword prices see third quarter rise
The average price that online marketers paid for a keyword in search advertising rose in the third quarter of 2006, new figures show.
Figures from search marketing firm Fathom Online had showed a fall in the average keyword price to $1.27 (£0.65) per word in the second quarter of the year, down from $1.39 (£0.71) in the first quarter of the year.
However, in the third quarter of the year, the average price rose again by 16.5 per cent to $1.48 (£0.75), emphasising the importance to online marketing professionals of targeting the right words.
Fathom Online chairman and CEO Dean DeBiase said: "Keyword demand is up as organisations have increased their online advertising budgets and expanded their search marketing capabilities.
"Both online advertising and search marketing are becoming strategic components of the overall marketing mix because of their growing effectiveness."
The firm said that the figures reflected both short-term and long-term trends towards higher keyword prices and greater online advertising spending.
Research from ZenithOptimedia that was released this week indicated that global internet advertising spend is set to grow by as much as 28.2 per cent next year and is expected to overtake radio advertising by 2009.
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