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February 22, 2006

Cost Per Keyword Spikes to $55 During Holiday Season

A MediaPost article reports on DoubleClick's Performics data released recently that shows the overall "cost-per-keyword" "rose to around $55 in December, from around $26 at the end of August." The "cost-per-keyword" is made up of "cost-per-click with the volume of clicks," which basically represents the cost of all the keywords and clicks for an advertiser over a month, divided by the number keywords in an advertisers bucket. A 107 percent increase in click volume from the fourth quarter of 2004 also helped the cost per keyword to rise to $55. Keyword prices are expected to level off somewhat, since the holiday season is over.

Posted by Barry Schwartz at February 22, 2006 9:51 AM