According to Fathom Online keyword prices have declined during the last year. Mediapost reports keyword prices last month averaged $1.46 per click, reflecting an 11 percent drop from the $1.64 average cost per click paid in November of 2004. Fathom found that year-to-year, the categories posting the largest declines were consumer services (29 percent), retail (25 percent), and mortgages (22 percent).

But keyword prices really aren't declining. Only a few of the eight measured categories show a decline. Even their report says, "Fathom states that the pricing fluctuations should be viewed in the context of the eight categories reported, and not as a proxy for the entire search industry."

In other words, it is not a large enough sample to be considered a trend. Many of my clients have experienced increasing prices. It depends on the industry.

Posted by: Mark Scholl at December 7, 2005 01:27 PM