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Search Engine ROI Surges

By: Doug Caverly
2006-06-23

A study conducted by the Performics arm of Doubleclick found that search engine marketing sales jumped 70 percent year-over-year in the first financial quarter. Campaign size and cost grew 40 percent each, for comparison. This amounts to the best search marketing return-on-investment in over a year.

Search Engine ROI Surges
Keyword Advertising Still Performing Well

As reported by Internet Retailer, Stuart Frankel, the president of Performics, said, The growing gap between spend and sales indicates that advertisers are making smarter decisions about how to maximize their search marketing spend.

Performicss prediction of a drop in search costs between the fourth and first quarters was validated; the cost-per-keyword dropped by nearly 50 percent. This shifted it from its fourth-quarter high of $59 to $30.

The proportion of keywords priced above $1 also fell from the fourth quarter to the first. This decrease was less drastic, with a change only from 7 percent to 5 percent. Frankel explained the occurrence in the Internet Retailer article.

Shoppers in the fourth quarter were buying for others and although they knew they were going to purchase something, they werent necessarily sure what, he said. However, in the first quarter, when shoppers were buying for themselves, they had likely already narrowed down the options, and therefore were searching with more specific terms.

Performics also disclosed that the average number of active keywords . . . rose, and that year-to-year growth in the number of active keywords in Q1 outpaced the growth in number of clicks.

Performics bills itself as the performance-based marketing division of DoubleClick. It provides online marketing services and technologies for leading multi-channel marketers.

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About the Author:
Doug is a staff writer for SearchNewz, WebProNews, InternetFinancialNews, and SecurityProNews.
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