Per-click prices go up 7% in November 2004, consumer services keywords up 32%

Fathom Online released its Keyword Price Index for November 2004 showing an overall 7% increase in the price of keywords from the October average of $1.55 per keyword to $1.66 for November. This increase was less than the overall 13% increase in October, but the two months together reflect the upward trend for keyword prices rising 21% since September.

Keyword prices for consumer services soared the most, increasing on average 32% from $.96 to $.1.27 per keyword. Adding that to the October increase of $.48 health, entertainment, schools and other advertisers are paying on average 135% more than they did in September. This category includes health, dating, and legal services, education, entertainment, media, and others. Retailers also were willing to ante up for more expensive keywords to attract holiday shoppers. Their November costs rose to $.60 from $.48 per keyword in October, a 25% increase, and a combined 88% increase for the two month period.

Advertisers in other sectors fared better. Telecom broadband keyword prices fell from $1.78 to $1.59 in November, a 16% decrease from September prices. The automotive industry, which had dropped 10% in October slowed the trend in November dropping 3% from $1.39 to $1.35 per keyword.