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BizReport : Research : December 18, 2006

Search Marketing Costs Up

The cost to search marketers rose in Q3, according to new research from DoubleClick. Conversion rates also showed a slight increase.

by Kristina Knight

According to the DoubleClick Performics 50 Search Unit Trends Report, the average cost per keyword rose 20% from June 2006 to September 2006. Performics combined the cost per click to the volume of clicks to come up with the formula. Cost per keyword (CPK) measures how much it cost a particular search marketer to “own” a keyword in a quarter.

Online marketers also saw increased conversions during the third quarter. According to the report, Q3 conversion rates climbed 4% from Q2, total clicks were up 3%. The report also indicated the move to convert the most holiday dollars began in August for search marketers; traditionally holiday search marketing has begun in October.

The Performics 50 Index, which follows 50 paid search campaigns, indicates the entire search spend increased by 38% in Q3.

The study indicates that search marketers are still positive about paid search efforts. With Yahoo’s release of the Panama paid search platform, search marketing dollars are expected to continue to increase in 2007.

Tags: paid search, search engines, search marketing

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