Prices fall on pay-per-click search ads

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Seasonal trends caused a 15 per cent drop in the prices advertisers had to pay search engines in May for certain keywords, according to a report from search engine marketing firm Fathom Online.The price drop marks the first decline in keyword prices since August 2004, when the company started monitoring the prices for a series of 500 keywords spread out over eight verticals. Advertising rates during that period on average rose 2.6 per cent.
Also known as ‘pay-per-click’ plans, search keyword ads offer advertisement space next to search results based on the keywords in the query.
Advertisers bid against each other in an auction style process with the highest bidder getting the top spot on the results page. They pay only when a user clicks on the advertisement. Click here for more.

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