AdSense Arbitrage Strategies

11 comments

TW member Graywolf has a nice three part series on arbitrage strategies for Adsense. Part I offers an introduction to the topic.

The basic principle is to pay a low price for keyword in an advertising program like AdWords, Yahoo Search Marketing, or MSN AdCenter and direct users to a page with AdSense or another contextual advertising program on it that has higher payout. You can either bid low on the same term, looking for keywords with a large bid gap (more on that later) or you can bid on very specific keywords with little competiton and drive them to page with ads for a more general and competitive term.

Part II goes through an example of how keywords can be selected, while Part III offers insight into how much of keyword analysis and opportunity finding can automated.

Comments

Great set of articles that

Great set of articles that unfortunately have sent the server offline it seems. Forget being /.ed I think GW has just been TWed!

Nice one

Is the strategy to teach everyone how to arbitrage search thus forcing Google et al to concentrate on stopping it?

Pay it forward

Arbitrage isn't nuclear physics, but it does require a little bit skill, expertise, and creativity to pull it off, and not get taken to the cleaners, so I don't know that it will ever be mainstream.

I was able to get to where I am because people before me were kind enough to share knowledge with me, so it's just good karma to repay the debt and teach others what I've learned. There's also a big difference between showing someone "how to fish" as opposed to showing someone "your secret fishing spot".

Flip side of the coin

The AdSense zealots on WMW constantly have threads about hunting down those MFA arbitrage sites and blocking them to get them out of the food chain and restore higher paying ads.

Luckily for the arbitrage sites AdSense only allows 200 sites to be blocked so arbitrage wins out on sheer volume of domains alone.

Great Articles

Especially i loved the third automating part...didnt realised you can find bid gaps with standard deviation for adsense arbitrage purposes even though its PPC 101 :).

Thanks GreyWolf...

hmmmm

Hey graywolf...

What is the impact of a large number of new, lesser-skilled players entering the AdWords/AdSense arbitrage market?

Come On GrayWolf

Just tell me that magic fishing spot.... I will limit my catch....

new players

Well one thing would do was get more money going into big G's pockets. Some will win some will lose. More competition means shrinking margins, so you adapt and overcome. By increasing the skill level required to run with the big dogs it opens up new opportunities for those who can do it.

Of course you could always focus on the negative aspects ...

Aussie Webmaster the journey is it's own reward ...

actually....

Actually I think that a bunch o' newbies trying the adwords/adsense game will inrease the opportunity for profit for the masters. What's the mean time to failure of a player in that game? I'd say two weeks, as many will lose big bucks fast and shy away from the game. Leave a bad enoughtaste, and they will shy far away.

Google is random as well...I

Google is random as well...I have one campaign that was getting about 6 million impressions a month for the last few months. This month it started getting a million impressions a day. Easy to eat through hundreds or thousands of dollars on the quick thataway.

Position Preference

Adwords' new "feature", position preference, does throw a spanner in the works a bit :(

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.