Average Keyword Price For Online Ads Up 16.5% in Q3

The average keyword price paid by online advertisers increased 16.5% percent to $1.48 in the third quarter, according to the Keyword Price Index from Fathom Online.  In Q2 2006, the average keyword price was $1.27, down from $1.39 in 1Q 2006. 

“Keyword demand is up as organizations have increased their online advertising budgets and expanded their search marketing capabilities,” said Dean DeBiase, Fathom Online Chairman & CEO.  “Both online advertising and search marketing are becoming strategic components of the overall marketing mix because of their growing effectiveness.”
In November, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP said that Internet advertising revenues in the third quarter of 2006 rose to an estimated new record of $4.2 billion.  

Third quarter revenue is a 33% increase from $3.1 billion in revenue from third quarter of last year and a 2% increase from nearly $4.1 billion in revenue in the second quarter of 2006. 

In July, JupiterResearch said total U.S. online advertising spending is expected to rise to $25.9 billion by 2011.

Published quarterly, Fathom Keyword Price Index® (KPI) leverages the Fathom Data platform to track a basket of 20,000+ keywords on select search engines. The Fathom KPI tracks the price of keywords for the purpose of providing advertisers with background and benchmarks for comparison to their individual search marketing campaigns. 

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