Keyword prices in November averaged $1.46 per click, 11 percent less than the $1.64 in November 2004, continuing their recent downward trend, reports MediaPost, citing Fathom Online's latest keyword price index. The average keyword price increased only 1 percent from October to November, from $1.45 to $1.46, whereas last year the average price increased 29 percent from September through November as marketers prepared for the holidays. Month to month, the greatest decreases were in the wireless (10 percent), broadband (8 percent), and finance/investing (8 percent) categories.

The greatest year-to-year declines came in the Consumer services and retail categories (29 percent and 25 percent, respectively) and finance/mortgage keywords (22 percent).

Fathom Online's Gregg Stewart, senior vice president, channel management and marketing, said one reason for this year's declines is that there's more inventory, but another is that buyers are becoming more sophisticated and not relying solely on generic keywords, which the index tracks. Some, for instance, have started adding city names to keywords.