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AdSense Arbitrage

Does it work for you?

     
8:17 am on Jun 24, 2006 (gmt 0)

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I was just reading an article about Arbitrage and myself have never tried it.

My questions are:

Does it work out monetarily for you? How well?

Is it "dangerous" as this article I was reading stated? Meaning you could lose money if you do not do it right.

Is it against G's TOS in any way?

Please tell your success or failures with this system and any tips or tricks that will help others as well. Thank you.

8:40 am on June 24, 2006 (gmt 0)

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Yes, I played with it, and based on the keywords and what you pay you can make money or lose your butt. Personally, I found AdSense ads to affiliate conversions paid the best.
12:02 pm on June 24, 2006 (gmt 0)

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Arbitrage works best when you can take advantage of the differences in cost/return on 2 different networks.

It's going to be more difficult, but not impossible, to make money off of adverts that people may have already seen (given your traffic will be coming from similar/same keywords on the same network).

Having said that, if you are very good with ad copy you can gain a financial advantage over others by paying less per click with AdWords, if this financial advantage is used to make a little on arbitrage then you have yourself a little earner. However, if you are that good then there may be better ways to take advantage of the lower bids you are earning.

12:28 pm on June 24, 2006 (gmt 0)

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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.

I use these sites to sell container loads of my niche construction products therefore, for me, I have two bites of the cherry.

One little AdSense bite and one much, much larger and more profitable chunk!

Do I make money from the arbitrage, no, do I make money from my product advertising, emphatically yes.

1:06 pm on June 24, 2006 (gmt 0)

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Few months ago I set up an experiment to promote my SEDO parked (!) domain with AdWords. The parked domain displays Google ads (and nothing but google ads), so it's a kind of arbitrage.

My ROI with this experiment was about 250%, although I didn't get enough clicks to produce substantial income.

In principle, I could work further in this direction to increase my income, but the only problem was that I felt such an aversion to this project that i had to stop it (I'am always trying to wipe out MFA advertizers from the legitimate site I own). But in general it looks like arbitrage profits are possible.

3:31 pm on June 24, 2006 (gmt 0)

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5:55 pm on June 24, 2006 (gmt 0)

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It works for me. I sell apples and I also advertize other people's apples on my web site, so I get two bites from the same apple.
6:25 pm on June 24, 2006 (gmt 0)

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It works for me. I sell apples and I also advertize other people's apples on my web site, so I get two bites from the same apple.

ArtistMike, so Arbitrage has two different meanings? For instance, you sell apples and advertise apples so you earn money from both things. I also sell apples and earn from apple ads.

Then there is the Arbitrage where you are an advertiser for keywords and also a publisher for same keywords, so you get people to your site through your adwords but you making money when they click on your ads. Am I correct?

6:38 pm on June 24, 2006 (gmt 0)

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Damn, thought I was the only person on the forum selling apples. Thought everyone else around here was in the widget market!

Depends a lot why you do the arbitage. I started it to promote a website that also has some adsense on it.

I've lost $40 in 4 months with my arbitage! Although it would have been closer to $200 had I not been grabbing money back with the adsense. I look at it as having my advertising 80% discounted.

The funny thing is you can tell Google how much you are prepared to spend each month, and they'll not bill more than that.

Who is to say what your discount might be. If you are prepared to forget any prospect of repeat visitors you might even turn a profit.

6:51 pm on June 24, 2006 (gmt 0)

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Damn, thought I was the only person on the forum selling apples.

Nope, however I am the only one with cherries declared so far:-)

7:39 pm on June 24, 2006 (gmt 0)

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I've tried it a couple of times. Running adwords will usually boost my adsense net income for a couple of days, but adsense seems to adjust my eCPM downward after the third day or so. By the end of one week, I'm usually just breaking even between adwords and adsense. After stopping my adwords campagin, it will take a couple of days for my eCPM to return to normal.

YMMV

8:18 pm on June 24, 2006 (gmt 0)

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It works for me. I sell apples and I also advertize other people's apples on my web site, so I get two bites from the same apple.
==================================

ArtistMike, so Arbitrage has two different meanings? For instance, you sell apples and advertise apples so you earn money from both things. I also sell apples and earn from apple ads.

Then there is the Arbitrage where you are an advertiser for keywords and also a publisher for same keywords, so you get people to your site through your adwords but you making money when they click on your ads. Am I correct?

===========================================

Yep. I sell apples (makes me money), I advertize apples (I spend money), I show ads about apples (makes me money).

9:56 pm on June 24, 2006 (gmt 0)

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It gets harder every week to make arbitrage work.

But I'm still making a few $ on my red apples.

3:51 am on June 25, 2006 (gmt 0)

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So is it against the TOS to Arbitrage.....or is it just a grey area?

Has anyone ever gotten "The Boot" for doing it?
I've seen many people doing this and have just wondered if they are walking a thin line.

heyday

5:55 am on June 25, 2006 (gmt 0)

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Advertising a site that contains adsense is not against TOS, nor is it a grey area (as long as the site itself doesn't violate Adsense TOS).
7:08 am on June 25, 2006 (gmt 0)

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What do you think MFA's do?

Pay for cherries with pennies and sell exotic mangoes for $$ . That is the way to arbitrage.

;-)

I am not going to give out secrets in this forum. Just suffices to say :learn from MFA's.. They know all about the subject under discussion. I for one, study their behaviour closely and get valuable tips .. :-)

5:13 am on June 27, 2006 (gmt 0)

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Adwords is not the only source of Paid Traffic. There are 600 other Small 'not so popular' PPC engines and some of them are quite reliable too.

Use other engines and you will be successful. And noone will accuse you of being a MFA. Isnt it? :)

Arbitrage is really good if you have proper tools and ways to do it. Its like you are living on brim. The day you dont check your stats and dont compare it with what you have spent, you will start loosing.

Do is right, and You cud be earning 14 times you are investing as I do.

Thanks
KeywordCountry

6:02 am on June 27, 2006 (gmt 0)

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yes you can make a lot via adword-> adsense arbitrage.

but with smart google engine, profit margin has been droping. currently i only make about one thousand USD per month.

1:44 pm on June 29, 2006 (gmt 0)

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Arbitrage can make you a lot of money or lose you a lot no matter what type of arbitrage you do, be it adsense or not.

In general, after surfing and researching this for quite a long time, I've come to the conclusion that its profitable but in a very unmeaningful way. We're not talking thousands or even hundreds--but just a few dollars for AdSense.

At the end of the day, the advertiser's ROI is all that matters--and G shouldn't (and probably doesn't have the time) to care so long as the advertisers ROI is still within a reasonable range. Its when the advertisers start pulling their ads or blocking all network sites, that G needs to step in and lay its fist down.

3:00 pm on June 29, 2006 (gmt 0)

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When one wants to be successful with arbitrage (and there are many who are VERY successful) it's combining a diversity of traffic and payout that aren't in the same network (i.e. AdSense & AdWords).

When you're large enough to negotiate a percentage of payout, then you know exactly what you're making on the publishing side.

At that point in time, it's just a matter of doing the math ($per click, CTR, $per click out - of course, tracked at the keyword level).

To think of scale, think about having an API from both sides. Real time data of how much each keyword is costing, how much each keyword is making - and then adjust bids/keyword automatically through an API.

Here's an interesting thread about quality score and arbitrage (lots of good info in there): [webmasterworld.com...]

4:26 pm on June 29, 2006 (gmt 0)

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It is not against Googles TOS. I heard an Adsense rep say it was ok on a radio show. She said she had an account and was doing it herself. The adsense team is encouraged to have adsense accounts so they know how it works.
4:44 pm on June 29, 2006 (gmt 0)

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I have been doing this for quite sometime now with great results. The good thing about it is that, I don't bother search engines anymore. If I get traffic from them, thanks, if not, fine. I don't even bother to see my position in the serp for a long time now. The trick is to learn adwords.
5:15 pm on June 29, 2006 (gmt 0)

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Anybody trying it via another PPC? (Overture/adCenter)?
5:48 pm on June 29, 2006 (gmt 0)

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The Google Adwords/Adsense arbitrage concept hasn't worked well for me.

I'm in the processing of testing it via Overture.

6:45 pm on June 29, 2006 (gmt 0)

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Put up an Adsense page for apples. Buy adwords keywords red apples, ripe apples, large apples, etc and drive them to that page. Arbitrage the difference...or replace adsense with a CPA network. There are a million ways to do this thing and probably millions more trying to do it.
1:05 am on June 30, 2006 (gmt 0)

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I've found that I only get around 50% of my advertsing spend back with Adsense. Of course, I'm not a pure MFA site since I have original content. I'm not actually trying to due pure arbitrage since I'm actually trying to covert visitors to my affiliate programs.
 

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