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Pay-per-click Keyword Prices Down in May

Kristen Fowler Lindsey - Wednesday, June 08, 2005

Keyword prices for pay-per-click advertising dropped in May in almost all industry sectors, according to the Fathom Online Keyword Price Index.

Prices dropped 15 percent from April to May at an average of 31 cents. The mortgage industry was the biggest contributor to this drop, slipping 30 percent in May. Reasons cited by Fathom online included interest rate increases.

Of the eight sectors that the KPI measures, only automotive showed any growth in May.

The travel sector, which showed a surprising drop as the summer season looms, actually indicated a correction. The drop is not due to a retrenchment in the industry, but instead is due to heavy investment in April. Though there is a drop in May, there is still significant keyword costs in this critical buying period.

How does it look in your industry? What sort of keyword price pressure do you see?

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