After the holiday surge in 4Q05, the average "cost per keyword" (CPK, the total monthly cost of a keyword, determined by the sum of the click costs) fell significantly in the first quarter of the year, according to DoubleClick's most recent Performics quarterly search report, writes MediaPost. CPK fell nearly by half in Q1, to around $30, from the 4Q high of around $59 last December, according to the report. CPK was relatively flat year over year, however.
Nevertheless, paid search programs continued to grow, according to DoubleClick's Performics report (pdf). Sales in the first quarter, measured in dollars, increased 72 percent compared with 1Q05; the average number of active keywords per campaign (those receiving at least one click or conversion per month) increased 36 percent; the total number of clicks increased 24 percent.
Consumers didn't click on the highest-priced keywords (often generic terms) as often in the first quarter as during the holidays. Although nearly 30 percent of clicks came from keywords priced at a CPC of more than 50 cents in December, that proportion dropped below 20 percent in March.
