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Keyword prices on the up

The average price of advertiser keywords rose in the third quarter of 2006, illustrating the growing presence of marketers on the web.

The Keyword Price Index from search Marketing firm Fathom Online shows that the average keyword price increased by 16.5 per cent to $1.48 (£0.75).

This reversed a downward trend that saw the average price drop from $1.39 (£0.71) in the first quarter of the year to $1.27 (£0.65) in the second.

Fathom Online's chairman and chief executive, Dean DeBiase, put this down to the increased popularity of keywords in light of greater online ad spend.

"Keyword demand is up as organisations have increased their online advertising budgets and expanded their search marketing capabilities," he said.

"Both online advertising and search marketing are becoming strategic components of the overall marketing mix because of their growing effectiveness."

Figures from the Interactive Advertising Bureau showed that Internet Advertising revenue in the third quarter rose by a third year-on-year, to $4.2 billion (£2.1 billion).

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