Revisiting the Subject of AdSense Arbitrage

Jun 28, 2006 - 11:32 am 2 by
Filed Under Google AdSense

Arbitrage is defined by Wikipedia as "the practice of taking advantage of a state of imbalance between two or more markets." When related to Internet Marketing, specifically paid search and contextual advertising, this practice has become known as "AdSense arbitrage" since this was probably the first widely used platform. Essentially, people make money by bidding on less expensive terms to drive people to a page with AdSense or some other Publisher Network ads. When people click on those ads, the money that the site owner makes for the click exceeds the money that he spent to drive the traffic to the site. With a good enough "conversion rate," this can be very lucrative. Note that we spoke about this in April when covering a SEW thread.

A more recent thread at WebMasterWorld brings up the subject of AdSense arbitrage in a slightly different manner, but leads to many similar points about the ability to make money using this process. One member states:

Arbitrage works best when you can take advantage of the differences in cost/return on 2 different networks.
And another ads:
Whenever I have used AdWords my AdSense earnings have averaged 25-30% of the advertising investment however I use AdWords to introduce new product lines or a new site.

It is speculated that Google and Yahoo are trying to do something about this. One would have to wonder how long that may take, however, since it makes the portals money even though it may muddle some search results. See the thread at WebMasterWorld Forums. The other very long and entertaining thread you may remember is at Search Engine Watch Forums.

 

Popular Categories

The Pulse of the search community

Follow

Search Video Recaps

 
Google Core Update Rumbling, Manual Actions FAQs, Core Web Vitals Updates, AI, Bing, Ads & More - YouTube
Video Details More Videos Subscribe to Videos

Most Recent Articles

Search Forum Recap

Daily Search Forum Recap: March 18, 2024

Mar 18, 2024 - 4:00 pm
Google Updates

Google Urges Patience As The March 2024 Core Update Continues To Rollout

Mar 18, 2024 - 7:51 am
Google

Official: Google Replaces Perspective Filter With Forums Filter

Mar 18, 2024 - 7:41 am
Google Maps

Google Business Profiles Now Offers Additional Review After Appeal Is Denied

Mar 18, 2024 - 7:31 am
Google Maps

EU Searchers Complaining About Google Maps Features Changes Related To DMA

Mar 18, 2024 - 7:21 am
Google

Google Showing Fewer Sitelinks Within Search

Mar 18, 2024 - 7:11 am
Previous Story: Does Hosting Ads Make a Site Look More Legitimate?