In the frenzy of search engine marketing that some online marketers have been engaging in, keyword prices have become astronomical. Such high prices might be unwarranted, says a new study of search engine marketing techniques by DoubleClick Inc.
In a white paper just issued, DoubleClick reports:
• Keywords do not need to be expensive to generate click volume. More than 60% of active keywords cost 20 cents or less; only 6% cost over $1.
• High position keywords do not necessarily equate to click volume. There are as many high click volume keywords in positions lower than No. 3 in search results as there are at No. 3 or higher.
• On average, conversion rates decrease when cost-per-click exceeds 50 cents, indicating, DoubleClick says, a potential “law of diminishing returns”
• Lower-positioned keywords still drive 10% of total conversions, suggesting there is value in developing broad keyword lists
“Multi-channel marketers encounter extremely complex variables in their search marketing campaigns, and more are starting to leverage sophisticated technologies and industry expertise to guide them,” said Chris Henger, senior vice president of marketing and product development for DoubleClick unit Performics.
DoubleClick is a provider of marketing services for advertising agencies, marketers and web publishers. Its services include online advertising, search engine marketing, affiliate marketing, email marketing, database marketing, data management and marketing resource management.
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