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Monday, December 13, 2004

SEARCH ENGINE AD TERM PRICES SKYROCKET

Adage

"Holiday season competition among marketers to buy Internet search terms has become so fierce that some terms are selling for as much as $18.90 a single click, according to involved agencies...

Popular brand words marketers are paying premium prices for this year include "digital camera," "mobile phone," "MP3 player" and "iPod."

$18.90 per single click: Among seemingly similar terms, certain configurations can command a higher price. For instance, "Holiday business card" was fetching $18.90 per click; while "Business Christmas card" was priced at $10.50; "Corporate Christmas card," $10.50; "Holiday corporate card," $10.50; and "Company Christmas card," $7.51.

Search ad authorities point out that neither the price nor the action of search engine advertising is static. Advertisers don't know the true value of a phrase until they experiment with it live and their search ad agency checks the return on investment of bids constantly. The real-time nature of search advertising lets marketers modify their terms at any time -- and it has become common for rival retailers to jockey against each other with rapidly changing search term strategies."

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