How- How does the search arbitrage business work?
COMMUNITYGOOGLE ADSENSE
The essence of traffic arbitrage lies in the reselling of traffic. You are always dealing with two sides in this equation: one side is where you acquire or purchase traffic (the ad network), and the other side is where you resell and redirect that traffic to the feed provider. This process is similar to any paid advertising scenario.
The essence of traffic arbitrage is the reselling of traffic. You are always dealing with two parties in this equation: one is where you acquire or purchase traffic (the ad network), and the other is where you resell and redirect that traffic to the feed provider. This process is similar to any paid advertising scenario. However, the difference is that your traffic does not go directly to an advertisement. Instead, it enters the search engine results page (SERP) and then directs visitors to the final advertiser's page.
Profitability is achieved when the cost of acquiring traffic from sources like social media, native ads, or display ads (CPC) is lower than the revenue generated from monetizing search results (EPC/RPC). For example, if an arbitrageur pays $0.20 per click for ads on Taboola and receives $0.40 in revenue when users click through to the landing page, the profit would be calculated as $0.40 - $0.20 = $0.20.
Types of search arbitrage
The following is an explanation of the types of buying volume for several search arbitrage models
Search to Search (S2S)
In this model, arbitrageurs purchase keywords at a lower cost from one search engine and then sell them at a higher cost on another search engine. The key to profitability lies in ensuring that the selling price exceeds the purchase price.
Display to Search (D2S)
In this scenario, traffic arbitrageurs leverage banner ads, which typically have lower costs. They acquire traffic through these ads and then redirect it to higher-cost search engine results pages (SERPs) that operate on a pay-per-click (CPC) basis, such as Google Search. This strategy requires an in-depth understanding of banner ad management but is often considered to have a higher probability of profit due to the lower initial costs compared to search engine keywords.
Native to Search (N2S)
In this approach, traffic arbitrageurs buy traffic at a lower price from native advertising platforms like Taboola and Outbrain, and then direct that traffic to higher-cost search engine keywords on platforms like Google and Bing.
Social to Search (S2S)
This strategy involves purchasing traffic from social media channels such as Facebook or Instagram, where the cost per click is typically lower than that of search engine keyword traffic. Traffic arbitrageurs then redirect this traffic to search engines, profiting from the price difference.
Channels for purchasing/obtaining traffic
Be sure to confirm with your Feed Provider account manager in advance which traffic sources are allowed and accepted.
