Average Keyword Price Rises to $1.51

• Posted: Thursday, February 08, 2007
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• Author: pradhana
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• Filed under: Internet Advertising

Are you paying too much for your keywords?

There is no way to know, really. Keyword costs vary from pennies to over $50. It depends on what category you are in and how competitive the bidding is.

But to give you a rough idea of what the average cost of a keyword is, Fathom Online maintains a "Keyword Price Index." According to its measures, the average keyword price paid by online advertisers rose just 2% in the fourth quarter of 2006, to $1.51.

That small increase followed a 16.5% jump in the third quarter of 2006, when prices climbed to $1.48 — but when compared to the fourth quarter of 2005, one year earlier, prices were up just 4% from $1.45.

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