Tuesday, December 13, 2005
The Cost of Keywords:
" Published: December 06, 2005
(After January 05, 2006, this article will only be available to eStat Database subscribers.)
With the rise of search engine marketing, millions of marketers around the world have one question: How much should they pay for a keyword?
Online marketers are starting to hear a new metric bantered about ? CPK, or cost-per-keyword. With search engine marketing (SEM) becoming an increasingly important ? and sizable ? part of the budget, CPK will soon become as ubiquitous around media planning conference tables as CPMs and CTRs.
DoubleClick's "Search Trend Report: Q3 2005" found that the average CPK as well as the average CPC (cost per click) showed steady increases throughout the third quarter. This could be due to a number of reasons, but the report stated that the most likely factors were "competition and a greater emphasis on higher-priced, higher-trafficked keywords that give advertisers the potential for greater visibility and brand awareness."
After a precipitous rise and fall in late '04 and early '05, CPK has been rising steadily throughout the year.
During the third quarter, CPK rose from $20 to $26 in DoubleClick's index.
The SEMphonic Keyword Pricing Index (SKPI), an index of cost-per-click and bids on selected industry-specific keywords, also showed a slow but steady rise across all industries in the first half of November.
In certain sections of the retail market, however, the SKPI shows keyword prices are rising more dramatically. Prices are up in kitchen, food, and wine (8%), arts and entertainment (8%) and most significantly in clothing and accessories (10%).
Comparing data from November 15 and November 1, SEMphonic noted a small rise in both top bids and average CPC, which rose from $0.49 to $0.53 on branded words, and from $0.96 to $1.00 on non-branded words. Overall, they report the average CPC rose about 4%.
A SEMphonic spokesperson said, "This shows a slow but steady rise in advertising costs as the holiday season approaches, but does not yet represent any significant jump in pricing."
To learn more about SEM, read eMarketer's Search Engine Marketing report."
" Published: December 06, 2005
(After January 05, 2006, this article will only be available to eStat Database subscribers.)
With the rise of search engine marketing, millions of marketers around the world have one question: How much should they pay for a keyword?
Online marketers are starting to hear a new metric bantered about ? CPK, or cost-per-keyword. With search engine marketing (SEM) becoming an increasingly important ? and sizable ? part of the budget, CPK will soon become as ubiquitous around media planning conference tables as CPMs and CTRs.
DoubleClick's "Search Trend Report: Q3 2005" found that the average CPK as well as the average CPC (cost per click) showed steady increases throughout the third quarter. This could be due to a number of reasons, but the report stated that the most likely factors were "competition and a greater emphasis on higher-priced, higher-trafficked keywords that give advertisers the potential for greater visibility and brand awareness."
After a precipitous rise and fall in late '04 and early '05, CPK has been rising steadily throughout the year.
During the third quarter, CPK rose from $20 to $26 in DoubleClick's index.
The SEMphonic Keyword Pricing Index (SKPI), an index of cost-per-click and bids on selected industry-specific keywords, also showed a slow but steady rise across all industries in the first half of November.
In certain sections of the retail market, however, the SKPI shows keyword prices are rising more dramatically. Prices are up in kitchen, food, and wine (8%), arts and entertainment (8%) and most significantly in clothing and accessories (10%).
Comparing data from November 15 and November 1, SEMphonic noted a small rise in both top bids and average CPC, which rose from $0.49 to $0.53 on branded words, and from $0.96 to $1.00 on non-branded words. Overall, they report the average CPC rose about 4%.
A SEMphonic spokesperson said, "This shows a slow but steady rise in advertising costs as the holiday season approaches, but does not yet represent any significant jump in pricing."
To learn more about SEM, read eMarketer's Search Engine Marketing report."
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