WebProNews

The average keyword bid for the first quarter of 2006 dipped to $1.39, four cents off the average at the end of 2005.

Research firm Fathom Online posted its latest results from its Keyword Pricing Index. After touching $1.43 for an average keyword bid in Q4 2005, the price lowered during the first quarter to $1.39.

The company cited the end of seasonal advertising as being responsible for the dip in average bid pricing. However, the market for online advertising still looks good to Fathom.

"Search marketing is growing at a robust 25 percent this year, and price stability helps that growth" said Matt McMahon, VP Marketing Services at Fathom. "As advertisers see a more predictable keyword bidding environment, confidence in the channel grows and advertisers continue to invest further in search marketing."

Fathom tracks over 20,000 keywords across 12 categories in building its Index. The company does caution that its "keyword averages are reliable indicators for media buyers, but are not to be considered proxies for the financial state of the search industry."

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David Utter is a staff writer for WebProNews covering technology and business.