Commentary

Keyword Prices in Mortgage Sector Strong and Stronger

Keyword Prices in Mortgage Sector Strong and Stronger

According to the Fathom Online Keyword Price Index, the prices that advertisers paid to buy search engine keywords increased on average 11 percent from April 1-30.  The data indicates that online auction of keywords is attracting more advertisers who are learning how to maximize their ROIs by taking advantage of seasonal opportunities when consumers come online with a strong intent to buy.

  • The Finance-Mortgage vertical remains strong, rising 20 percent to $6.49 per keyword on average. Clearly, homeowners are still refinancing and new mortgages are being purchased at a fast clip.
  • The Telecom Wireless category moved upward rising six percent in April from $.95 per keyword to $1.01, this following a 23 percent rise in March.
  • Broadband also came to life in the last two months, rising 13 percent monthly.
  • The Travel and Hospitality and Automotive sectors showed marginal movement each dropping one percent indicating that advertisers are finding opportunities to continue to spend against these sectors.

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"Advertisers monitoring the marketplace for buys in the travel and automotive categories found some good values for their clients," said Chris Churchill, Fathom Online CEO. "While price is important, advertisers must understand that conversion rates continue to be the governing factor in how much marketers decide to pay, and that conversions can be seasonal as well."

Fathom Online Keyword Price Index

 

September 2004

April 2005

Automotive

$1.54

1.40

Consumer Retail

0.32

0.52

Consumer Services

0.54

1.13

Consumer Travel/Hospitality

0.64

0.92

Finance-Investing

1.76

2.03

Finance-Mortgage

3.17

6.49

Telecom-Broadband

1.89

2.09

Telecom-Wireless

1.09

1.01

Average of Tracked Industries

1.37

1.95

Source: Raymond Lee, Fathom Online analyst, May 2005

 

Read more including the complete data chart.

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