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March Search Keyword Prices Increased According to Fathom

Advertisers Seize On Seasonal Buying Opportunities

San Francisco -- As Q1 came to a close, the prices that advertisers paid to buy search engine keywords increased on average nine percent from March 1-31, according to the Fathom Online Keyword Price Index (KPI) with all categories rebounding from January and February. The data indicates that more advertisers are seeing the advantages of search marketing and learning how to maximize their ROIs by taking advantage of seasonal opportunities when consumers come online with a strong intent to buy.
For instance, the Travel and Hospitality sector increased 15 percent in March as travel companies, hotels and destination spots anticipated surges in searches by people planning and purchasing for summer vacations.

Much like the stock market, PPC (pay per click) ads are bought and sold in auctions and are affected by supply and demand, said Chris Churchill, Fathom Online CEO. The latest increase in demand for keywords, suggests that advertisers are continuing to get the ROI out of their search spend and it is important that advertisers understand that conversion rates continue to be the governing factor in how marketers decide how much to pay and conversion are seasonal too.

In other notable shifts, the Telecom Wireless category, increased from $.77 to $.95 driven by major cell phone and new mobile technology campaigns aimed at consumers. Though the March increase was large, the KPI is still below the pre-holiday 2004 average of $1.09.

The Automotive sector reversed its five month downward trend by posting an 11 percent gain for each keyword on average, indicating that automotive makers and dealers are optimistic about the beginning of a spring consumer buying surge as new models come to market. Once again, the Finance Mortgage advertisers proved that in the online auction for keywords, whats high for one marketer may be not high at all for another. Mortgage keywords climbed six percent to a new high of $5.39 per keyword reflecting the continuing favorable conversion rates for mortgage companies and lenders.

Raymond Lee, Fathom Online analyst

Seasonality impacts heavily on the consumer categories in particular, said Matt McMahon, EVP Corporate Development for Fathom Online. The search market is increasingly complex and rapidly expanding which is the reason that new technology has become essential for developing more sophisticated analytics and optimization tools to successfully manage campaigns. Among other strategies, media buyers need to broaden the use of keywords well beyond the most popular ones, and then analyze which ones convert most profitably.

Fathom Online tracks keyword prices daily to spot trends and to provide its clients with advantageous buying opportunities. The keyword list consists of 500 popular generic keywords across eight categories, across the top five ranked positions on Tier I, II and III search engines. The aggregate data, which contains no proper or brand names, has been published monthly.

Based in San Francisco with offices in New York and Chicago, Fathom Online enables marketers to reach the millions of consumers who seek information online on more than 50 search engines, and to convert those inquiries into leads and/or sales. Performance and results are measured, ensuring accountability. For more information, go to: www.fathomonline.com.

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