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Keyword Price Declines Persist

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Keyword prices fell to an average of $1.43 last month, or 16 percent less than the $1.70 average in December 2004, writes MediaPost, citing data the Fathom Online keyword price index. The greatest year-over-year declines in keyword prices were for the consumer services (35 percent, to $0.89) and mortgage (31 percent, to $3.30) categories. Only the automotive and travel/hospitality categories experienced year-over-year increases - 8 percent (to $1.52) and 2 percent (to $0.99), respectively.

Year-over-year declines in keyword prices were significant in the consumer retail and investment categories as well - 12 percent (to $0.51) and 9 percent (to $1.60), respectively.

On a month-to-month basis, categories for which keyword prices increased were wireless (15 percent, to $1.09), consumer retail (13 percent, to $0.51), automotive (10 percent, to $1.52), and travel (2 percent, to $0.99). The greatest decreases were in finance/investing (11 percent, $1.60) and finance/mortgage (10 percent, to $3.30).

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