The average keyword price in Q3 reversed a downward trend, according to the Keyword Price Index from search marketing services provider Fathom Online.

The average keyword price paid by online search marketers increased 16.5 percent to $1.48 in the third quarter of 2006, Fathom reported. In the second quarter, the average keyword price was $1.27, down from $1.39 in the first quarter.

"Keyword demand is up as organizations have increased their online advertising budgets and expanded their search marketing capabilities," said Dean DeBiase, Fathom Online chairman and CEO, in a statement. "Both online advertising and search marketing are becoming strategic components of the overall marketing mix because of their growing effectiveness."

The Keyword Price Index, designed to be a representative sample of keyword prices, is a weighted average of more than 20,000 active keyword prices across all major search engines covering a broad range of industries. Actual prices for keywords vary widely and depend on demand and competitive bidding, among other market factors.