What is Search Arbitrage?
Introduction
Search arbitrage is a digital marketing strategy where advertisers buy low-cost traffic from search engines and redirect it to web pages that monetize this traffic through higher-paying ads. The goal is to profit from the difference between the cost of the traffic and the revenue generated from the displayed ads. This guide will explain search arbitrage from A to Z, using simple English to ensure clarity and understanding.
What is Search Arbitrage?
Definition
Search arbitrage is a method of traffic arbitration that involves purchasing search traffic and then selling ad placements on landing pages to make a profit from the price difference. It’s essentially about buying low and selling high, similar to financial arbitrage.
How Does It Work?
The search ads are delivered via parked domains for which other advertisers pay on platforms like Google, Bing, or Yahoo.
Example
Imagine you buy PPC ads for $0.10 per click. You send the traffic to a parked domain that displays ads paying you $0.20 per click. For every click, you make a profit of $0.10.
Search Feed Providers
To work in search arbitrage, you must partner with a select group of search feed providers. You may need to meet certain criteria, such as ad spend requirements and providing proof of concept.
Major Search Feed Providers
- System1
- Sedo
- DomainActive
- Tonic
- Bodis
- ExploreAds
- Perion
Traffic Sources for Search Arbitrage
Popular Traffic Sources
- Facebook Ads: Allows for highly targeted campaigns.
- TikTok Ads: Popular among younger audiences.
- Taboola and Outbrain: Native ad networks that place ads within content on popular websites.
Conclusion
Search arbitrage can be a highly profitable strategy if executed correctly. By understanding the fundamentals, setting up effective campaigns, and continuously optimizing based on performance data, you can leverage search arbitrage to generate significant revenue. Always adhere to compliance rules and best practices to ensure the longevity and success of your campaigns.
