Search engine pay-per-click (PPC) ad prices are rising. If your Web business relies heavily on search engine marketing (SEM), you may already feel the crunch.

Marketers often abandon certain search terms because the cost rises above their ability to achieve a reasonable return on investment (ROI). In-demand terms are often too expensive to be worthwhile. Soon, demand will place many keywords out of reach of everyone excepting those with the deepest pockets.

What about organic SEO (define)? This week, a few tips regarding ever-important SEO, its relationship to conversion rates and ROI, and shopping for an SEO firm.

PPC Inflation Is Real

The Keyword Price Index is published monthly by leading search engine marketer Fathom Online. The October index shows an overall 14 percent increase in keyword price, from September’s average of $1.37 per keyword to $1.55 in October. According to the index, October was much more costly than September. Average keyword prices for consumer services (e.g., entertainment and spas) rose from $0.54 to $0.96 (78 percent). Retailers saw higher prices, too, from $0.32 to $0.48 (52 percent).

Some verticals saw prices drop. In the automotive industry, the average price went from $1.43 to $1.39, a 10 percent decrease. Telecom/broadband keywords fell from $1.89 to $1.78 (5 percent).

Continue reading my column at ClickZ…