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Paid Search Costs Rise For Some, But Ads A Bargain, Analysts Say; A few e-tailers grouse of keyword price hikes as offline chains join in.(A)

Investor's Business Daily

| March 03, 2006 | COPYRIGHT 2006 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: PETE BARLAS

When it comes to paid search, the price isn't right for some online retailers.

Jewelry Web site Blue Nile and leading florist FTD Group said recently that their paid search costs have nearly doubled since last year.

But analysts argue that paid search ads are still the most effective way of reaching customers.

Retailers have jumped into paid search from Google, Yahoo and others to drive sales online.

With paid search, advertisers' ads appear near related search results. The ads are designed to match whatever keywords a consumer uses for a search.

Advertisers pay only when a consumer clicks on their ad.

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