Companies could lower the cost of their pay per click services by focusing on low-priced keywords that still have high conversion rates, it has been suggested.

Jack Keifer of told Internet Retailer that his company – which sells baby car seats, nursery furniture, prams, toys and bath accessories – had managed to do just this, cutting pay per click services costs from 75 per cent of overall budgets to 15 per cent.

Marketers at the firm looked at keywords that were not as highly priced as the most popular terms but still managed to offer good conversion rates.

This tactic, coupled with an expanded product line, also helped to increase sales by about 300 per cent in the final three months of 2008, he said.

Mr Keifer remarked: "It has worked out well. With less dollars spent frivolously, gross sales from search marketing are lower but profits are up."

The company places its pay per click ads on search engines such as Google, Yahoo!, Live Search and Pronto.

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