Keyword Prices Decline 3.0% in the First Quarter of 2005
28/04/2008 17:38
on: World Of Webs
An analysis of web’s most popular 20,000 keywords by
TopPayingKeywords.com, found that keyword prices dropped 3.0%
from January 2005 to April 2005 from an average bid price of
58.9 cents to an average bid price of 57.1 cents. The 20,000
most popular keywords are distributed in pricing as follows:
Keyword Price…# of Keywords $20.00-$49.99…20 $10.00 - $19.99…123
$5.00 - $9.99…660 $3.00 - $4.99…923 $1.00 - $2.99…3,918 $0.50 -
$0.99…2,259 $0.25 - $0.49…2,115 $0.15 - $0.24…1,584 $0.10 -
$0.14…2,962 $0.05 - $0.09…592
Note that there are 4,379 keywords in the Top 20,000 keywords
which have either a zero price or do not have three active
advertisers.
Keyword pricing is critical for internet advertisers and also
webmasters as expensive keywords allow them to maximize their
profits using Google’s Adsense program.
According to Dave Lavinsky, President of TopPayingKeywords.com,
“With the overall decrease in keyword prices this quarter, it is
important to know which keywords remain profitable. What may not
seem evident is that in fact many keywords enjoyed a large
appreciation in value and now we have over 800 keywords in our
database that are worth $5.00 or more.”
There were many large increases in the value of certain
keywords. The keyword “shiva” for example, went up 935% from a
price of just $0.17 to $1.76. “Medifast” also made a giant leap
in value increasing from $1.50 to $6.98. This surge in value is
most likely due to increased consumer awareness of the Medifast
brand and increasing competition among retailers.
With information changing so quickly it is important to keep
abreast of the current value of keywords. The value of these
keywords can change dramatically over a very short period of
time making a once profitable website quickly unprofitable. For
instance, the keyword “Vioxx” declined by 50% from $16 to $8
from January to April 2005 as the value of Vioxx litigation
clients decreased. Keeping informed and up to date is of great
importance to webmasters looking to turn a profit.











