Digital Advertising Information You Need to Know

Optimizing Search Terms for Conversion may be the Key to Great ROI
- February 2005
By Bryan Eisenberg, Target Marketing Magazine

It’s no longer speculation, it’s a chilly reality: Search engine pay-per-click (PPC) ad prices are on the rise. The Keyword Price Index, published monthly by search engine marketer Fathom Online, shows an overall 13 percent increase in keyword price for October 2004, up to $1.55 per keyword from September’s average of $1.37. Average keyword prices for consumer services (e.g., entertainment and spas) rose from $0.54 to $0.96, an increase of 78 percent. Retailers saw higher prices as well, with a 50 percent increase, from $0.32 to $0.48.

Organic search engine optimization (SEO) costs also are bloating as the finite universe of general topic keywords is gobbled up by deep-pocket marketers. SEO firms are charging more, and many sites are abandoning certain search terms because the cost is above their ability to achieve a reasonable return on investment (ROI).

To begin to solve this problem, you must target and optimize for organic search terms that are more likely to convert into sales or leads, rather than optimizing for terms that may drive higher volumes of lower quality traffic.

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