Saturday, April 01, 2006

Contextual Online Ad Rates Stabilizing

More and more advertising money enters the search arena every day.

With the increase in advertising, the most recent edition of Fathom Online Keyword Price Index indicates that overall prices in the online keyword auction have stabilized, helped by increases in the inventory of keywords and phrases. The report found that in December 2005 KPI averages eased, dropping two percent to $1.43 from $1.46 in November. In Q4 2005, the overall average price of keywords stayed virtually flat ending one cent lower from the September KPI of $1.44.

Prices since December 2004 have dropped 16% from a high of $1.70.

The market for contextually relevant marketing messages will grow because it brings efficiency, despite a rampant issue with click fraud. Some reports indicate click fraud might represent as much as 40% of all clicks.

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