Following on the Q4 2005 holiday season, the drop in bids was not surprising given the seasonal nature of advertising.
Overall, the average bid has increased 1.4 percent since the September 2004 inception of the KPI when the average bid was $1.37. Although prices often vary dramatically day to day, average bid prices have settled in to a predictable range.
â€œSearch marketing is growing at a robust 25 percent this year, and price stability helps that growthâ€? said Matt McMahon, VP Marketing Services at Fathom.