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June 7, 2005

Falling Keyword Prices

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According to Marketing Vox, the average cost for a keyword dropped 15% in May, from $1.95 to $1.66. In previous months (March-April), keywords saw a rise of 11%.

The reason for the decline in cost, is due primarily to the dip in price for mortgage-affiliated keywords. Mortgage keywords were up 20% in April but in May, they dropped 30%. This plummet is responsible for the overall drop in keyword prices.

The only search keywords to experience an increase in May were automotive keywords which were up 7%. Other keywords which were down last month included retail, travel & hospitality which were down by 6%, and consumer services, broadband & wireless telecommunications were down by 3%.

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