The cost of retail keywords in search engines rose 44% from September 2004 to September 2005, reports search engine marketing company Fathom Online, which has developed the Fathom Online Keyword Price Index.
The average cost of a retail keyword this year was 46 cents vs. 32 cents a year ago. Retail experienced the second highest increase in keyword costs after consumer services (education, fitness and entertainment) where the average increased 78% from 54 cents to 96 cents.
Retail keyword prices spanned a large range from as low as 10 cents to as high as a few dollars, says Gregg Stewart, senior vice president, channel management and marketing for Fathom Online. “Keywords are moving north, although compared to other categories, retail keywords are still a bargain,” Stewart tells InternetRetailer.com. The average price of a keyword in the automotive category, for instance, was $1.51. Keywords in finance/mortgage approached $3.50.
With rising keyword prices, Stewart says more retailers are focusing on increasing the rate by which shoppers who click on keywords buy. “If you can increase your conversion rates for shoppers who come through keywords, it helps you be a better buyer in the keyword market,” he says.
The average keyword across all industries cost $1.37, up from $1.44 the year before.
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