Search Keyword Prices Drop

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Keyword prices for generic search terms decreased after the holiday season, according to a report released yesterday.

The average keyword price dropped three percent from $1.43 in the last quarter of 2005 to $1.39 in the first quarter of 2006, according to Fathom Online, San Francisco, which publishes the Fathom Online quarterly Keyword Price Index.

The drop in keyword bids was not surprising, given the seasonal nature of advertising, according to a statement from Fathom Online.

"As advertisers see a more predictable keyword bidding environment, confidence in the channel grows and advertisers continue to invest further in search marketing," says Matt McMahon, vice president, marketing services, for Fathom

Fathom has expanded its Keyword Price Index from 4,000 generic keywrods across eight categories to more than 20,000 generic keywrods across 12 categories.

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