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Keywords Costs Rising: Survey

Online marketers say common keywords are getting more expensive, according to new research. A survey by the Search Engine Marketing Professional Organization revealed that most advertisers felt prices for their common keywords rose in 2005, with the most common estimate of how much they rose being "20 percent or more." That was the response of 32 percent of agencies and 20 percent of advertisers in the survey, followed by "10 percent more" and "30 percent more," both garnering 25 percent of agency votes and 15 percent of advertisers'. Nonetheless, experts said improvements in ROI could still justify larger marketing spends in 2006. "Higher costs don't necessarily have to translate into lower return on investment. We counsel many of our clients to pursue the same levels of ROI, and accept slightly less in terms of volume of return," said Ben Perry, director of paid search programs at iProspect. "Rethinking the true worth of search traffic, most notably by reconsidering potential branding value over and above more measurable ROI, will allow search marketers to reset their expectations of search traffic costs."

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