Do the most expensive keywords generate the greatest click-through? Not necessarily, according to a new white paper from web marketing and advertising company DoubleClick Inc. On average, the report showed, more than 60% of active keywords cost 20 cents or less per click, while only 6% cost more than $1 per click.
DoubleClick drew on information compiled by its Performics search marketing and affiliate division on the performance of hundreds of thousands of keywords maintained by more than 100 leading online marketers. The white paper targeted click volume, campaign size, keyword length, pricing and position as key considerations when designing and executing a search marketing program.
"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," says Chris Henger, SVP of marketing and product development for Performics.
The white paper also determined that high-positioned keywords do not always equate to click volume, noting that its research identified as many high-volume click keywords in results listings positions lower than three as at position three or higher. On average, the research found, conversion rates decrease when CPC exceeds 50 cents, suggesting a "law of diminishing returns" in the level of CPC investment per keyword. The research also showed that keywords in lower positions still drive 10% of all conversions, supporting the idea that there is value in developing broad keyword lists.
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