a)the monetization of clicks out is so great that such a venture is warranted?; or
b)type-in internet users tend *not* to stick to those domains
c)Google is getting better at banning parked domains running ppc ads from their SERPs?
d)the domain parking firms are trying to bolster traffic numbers while seeking buyers?
Honest opinions are greatly appreciated!
-Shorebreak
Google AdWords arbitrage? I find the issue somewhat interesting. IF an Adwords arbitrager is able to make money driving clicks to the Adwords content network ad does that mean that the Adwords advertiser is overpaying in the first instance? Perhaps the Adwords advertiser would do better to study the patterns and actions of the arbitrager than to voice dissent?
Everything PPC is about ROI and therefore arbitrage is a game that some people play, including PPC to MFAdSense sites. It all gets down to the question of whether the advertiser is getting a decent bang for their buck. Not my game. If you have the right domains people type them in every day. Since there's 6 billion people on the planet and more are coming online every day I'm not worried about running out of people who type-in my domains.
Regarding stickiness, domain landers are not sticky as they are now designed, largely by design. That said, the landing page sponsors are taking steps to craft stickiness into domain names - perhaps making them into miniportals. In some cases that's not a bad idea. Some domains are, by design, intended to carry such a structure, such as ahem, cough, cough directory domains.
Can't speak to Google. If an AdSense site, a microsite, a website, or a lander is simply a conduit to an e-commerce (end of search) site and Google makes some change on the various routes to the final destination so be it. If free search or "organic search" was not a source of revenue Google would be out of business.
IF domain companies are trying to bolster numbers whilst searching for buyers their game would be rather transparent - if the game consisted of buying traffic to domain landers. Don't think that's it.
Honest to goodness, such is my opinion.
Google AdWords arbitrage? I find the issue somewhat interesting. IF an Adwords arbitrager is able to make money driving clicks to the Adwords content network ad does that mean that the Adwords advertiser is overpaying in the first instance? Perhaps the Adwords advertiser would do better to study the patterns and actions of the arbitrager than to voice dissent?
If you go by the book, Google prohibits advertising parked domains on Adwords, as well as prohibiting Adsense on parked domains. Google has their own parking program, which is the only sanctioned way of having Adsense on parked domains.
Unofficially, it seems to happen, but under what terms is unknown. A lot of things that aren't supposed to happen happen on Adwords within the 3-5 day review window. Ads are normally (with some exceptions) allowed to run immediately on Google search. (They have to wait for human review before running on external sites.)
There are lots of people out there playing games getting around various Google rules using multiple (and perhaps in some cases - stolen) credit cards.
Some people may fly below the radar by claiming they have a "content" site rather than a "parked" site. The line is thin and fuzzy, and I wouldn't want to jeopardize an Adwords or Adsense account by doing it.
I wouldn't cross Google's thin, fuzzy line intentionally. It's way too risky. I see people turning up here and on the Adwords support boards daily complaining that their account was banned due to <insert rule here> that they thought was OK because they saw somebody else doing it. (People usually don't get completely banned, though, unless they simply repeatedly ignore the rules.) FWIW, the most common thing I see this being done for is gambling-related sites. They aren't allowed, but somehow a lot slip through, and some people are convinced that it must be OK if somebody else is doing it too. So, they try it, get banned, and then cry about it...
I think that, yes, there probably is some opportunity for this sort of arbitrage - at least for now. As with all arbitrages, the profit margin should steadily decline to near zero over time. And there is potentially an unpleasant and untimely end for those who ignore rules.
It's something I would rather not see, as I feel it detracts from the quality of the Adwords experience. (As does the official Google parking program, as well.) The problem is, generally, these sites are not real search or information sites, and people are driven to click on ads in part due to their frustration of not finding anything useful on the site. In many cases, ads over-promise - offering widgets when all that is offered is a widget store directory, or just ads for widget stores, for example. In any case, it seems, for many, a game of "frustrate the user into clicking". I'd imagine if you DON'T do this, the profit margin disappears.
Most of these schemes depend on displayed ads that are much higher-priced than the ads that bring people to the site. While in some cases, this may be due to market ineffeciencies, I think that for the most part it is due to deliberate deception, frustrating users into clicking ads, and presenting higher-priced ads (through landing page keyword tricks) that do not match the user's actual needs.
