In today’s world, there are many ways for Companies and individuals to make money online. One of the way is Arbitrage. Now, if you have heard about arbitrage for the first time, then Arbitrage is reselling. You have to buy something from one place and sell it to another. the fraction of buying and selling will be your profit. In Search Arbitrage our main job is to sell traffic to search feed providers. Also it involves the use of paid advertising to generate revenue and profits. Search Arbitrage has become a popular and widely used stage for many companies and individuals. In today’s article, we will look at what it is and how it works actually.
What is Search Arbitrage?
Search Arbitrage is a way of practicing and using paid search advertising campaigns to drive traffic towards websites that have pay-per-click (PPC) ads. Additionally, we are also able to see it works to rank in more than one search engine such as Google, Yahoo and many more for some keywords. Also by using this thing, people get directions to visit various web pages and find expensive, important keywords.
Now let me explain it in my words, Search arbitrage is an arbitrage model where you have to buy traffic from premium ad networks, such as Facebook, TikTok, taboola, Outbrain, etc, and have to drive them into your search feed (Powered by Google, Yahoo, Microsoft), Once your traffic will land in your search feed landing page, they will see some results pulled by SERP system directly from Google, Yahoo, Microsoft search ads inventory. If your traffic clicks on any of the search ads from the window, you will get paid. Since you will bring traffic from another system by showing similar category ads, the traffic interest will be the same, there is a big chance your traffic will click on any of the ads showing on your search feed, once they click, it will generate revenue. now definitely you had to spend $ to buy that traffic from another platform. To find out your profit out of this test, you have to do the following calculation, Generated revenue – traffic cost = Profit. if you wanna know more about it, do not hesitate to write us here.
How does it work
Search Arbitrage works by targeting high/Medium search volume, low/Medium competition keywords and phrases that have a high cost-per-click rate in Google keyword planner. Next, you have to find a way to use this information for your search arbitrage funnel. Now lets break down the funnel at first, as per search arb methodology you need to buy traffic from premium traffic sources and sell it to search feed provider. In order to do that, you you need to have 3 things. An ad account, where you will buy traffic, A tracking tools (For Tracking tools, we recommand to use clickflare), A search feed. Now you have to connect your search feed and ad account to your tracker.
Once everything is ready, lets bring the research we have started in the beginning about targeting high/Medium search volume, low/Medium competition keywords and phrases that have a high cost-per-click rate in google keyword planner. as per those information, now you have to create ads on your ad network and drive traffic towards your search feed which you have optimized already based on the google keyword planner data. pretty much this is how it works. But yes there are multiple sub factors between ad account/networks, tracking tools, optimization of your campagins and revenue sources, means search feed types.
Assume that Mr.Thiksana, A freelancer from Sri Lanka uses Search Arbitrager to earn money. What will be his procedures for working with Search Arbitrageurs? At the very beginning, he keeps his bidding for the keywords and maintains his position in the search advertisements. By doing that, if he achieves his desired position, then he will redirect his audiences to other websites by clicking. Also, he will try to pay less for buying all the keywords so that he can earn more revenue from them. And that’s all. These are the main ways of using Search Arbitrage. Some popular Search Arbitrages are Keepa, Tactical Arbitrage Etc.
Examples of Search Arbitrage
Let us start with a story to explain the Search Arbitrage. Suppose there is a search Affiliate marketer named Mr. Max. He promotes a weight loss supplement. So he purchased ads on Google for keywords like “Weight Loss”, “Lose Weight Fast”, “Best Weight Loss Supplement” and many more. When someone clicks on their ad, they are redirected to a landing page that promotes weight loss supplements. If any visitor buys any kind of weight Loss Supplements, they will get benefits and commissions by it or earn per click.
If we talk about Search Arbitrage examples, one of the most popular examples of it is the use of content publishers. This refers to individuals who create and publish informative articles, blogs, and reviews on a variety of topics. They use search arbitrage to engage more traffic to their sites. If they can do that, they will earn revenue from the clicks ads placed on their sites.
Also, Affiliate marketers use Search Arbitrage to earn revenue from every sale. They use it to send traffic to affiliate offers. So we can say they mainly use it to increase their sales. They purchase various ads on search engines for many keywords which are closely related to the products of their businesses. By doing this thing they can easily engage themselves with their targeted audience. Also, they can redirect all the traffic to a specific landing page which can convert visitors into customers. If these customers make a purchase, the affiliate marketer will earn commissions, which are basically their earnings.
Search Feed Types and Differences by Click Type
For better understanding we will divide all search feeds by its original providers, means Google, Yahoo and Bing/Microsoft
Google Search Feeds:
Google 1 Click Search Feeds
AFD(Ad Sense for Domains)
AFD stands for Ad Sense for Domains, This is 2 2-click flow, which means it has 2 pages, before the SERP page, there will be an Intermediatory page, which will ensure traffic is not in this landing page mistakenly. In this method you will see a blue page full of keywords (1st page), once you will click on any of those keywords, you will enter into another blue page (2nd page) where you will see some search ads from Google inventory and relevant to your page1 keywords. once your traffic clicks on any of these ads from the 2nd page. you will get paid. Both landing page screenshot are added below,
RSOC (Relevent Search for Content Pages)
RSOC stands for Relevent search for Content pages. This one is also 2 click flow but the only difference is, that you will see content on the first page, along with the selected keywords (way to enter to the 2nd page/Conversion page). Both page screenshot given below,
Yahoo Search Feeds
What kind of Traffic Can I use for Search Arbitrage?
To maintain and run a profitable search arbitrage campaign, users need to understand the different types of traffic available and which one will suit your model. So it is very important to know the perfect and suitable traffic for your work model. Here are examples of various types of traffic models anyone can use for search Arbitrage.
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- Search Engine Traffic: It is one of the most organic and natural types of traffic available. Mainly all of this traffic comes from the users that browse the web, searching specific keywords which are related to your content. Also Google and other search engines rank websites according to their relevance to specific keywords. So if your website and contents are highly related then it will go up to the search engine results page or SERP.
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- Social Media Traffic: Social Media is also a strong and perfect way to drive your traffic. Also in search arbitrage it creates a huge impact. Now people love to share their content on various social media like Facebook, Twitter, and Instagram to engage people towards your website. If you create engaging content and attract an audience, you will get a huge number of traffic to your website
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- Display Advertising Traffic: People always love to read or hear the main ideas of your business, content or anything within a short time. If they get attracted by that, they will surely read or use your site. One of the best ways to engage people towards your website and get traffic is to display advertising traffic. One of the best Display Advertising examples is Placing Banner ads. By displaying ads on the banner anyone can drive a huge number of visitors to their website very quickly.
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- Native Advertising Traffic: Native Advertising is another great way to attract traffic towards your website. Mainly it matches the form and functions of the platform on which the site appears. It is a Subtle and non-intrusive kind of advertising. And these processes are able to attract people to your website. Mainly they are placed on blogs, news websites and other websites which are very much similar to your niche and keywords.
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- Email Marketing Traffic: It is actually a targeted traffic option. In this some promotional mail will be sent to targeted customers who are already interested in your content, blogs or product.
- Email Marketing Traffic: It is actually a targeted traffic option. In this some promotional mail will be sent to targeted customers who are already interested in your content, blogs or product.
Keyword Niches for Search Arbitrage
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- Insurance
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- Online Education
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- Marketing
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- Advertising
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- Legal
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- Internet and Telecoms
Factors to Consider While Keyword Selection for Search Arbitrage
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- High CPC
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- Low Competition
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- High Search Value
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- User Intent
Tools for Keyword Research for Search Arbitrage
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- Google Ads Keyword Planner
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- SEMrush
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- Ahrefs
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- Keywordtool.io
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- Moz Keyword Explorer
Advantages and Disadvantages of Search Arbitrage
Advantages
The big advantage of Search Arbitrage is, that your money is rolling in front of your eyes. 99% chance your investment is secured. The business model requires very little manpower and a 100% computer-based revenue stream. It’s an Ad tech business but it is also relevant to Fintech.
One of the main advantages of search arbitrage is it always allows website owners to monetize all of their traffic easily and perfectly. Also they can earn a lot of revenue by buying traffic at a lower cost and earn more than it by redirecting it. In addition, search arbitrage is always scalable. It means website owners can purchase more traffic if their profits match their expectations. Also, search arbitrage can be used to test different types of keywords and landing pages. So website owners can buy different kinds of traffic which one provides better revenues. Though purchasing traffic is prohibited by many search engines, it is also a great way to earn revenues easily.
Disadvantages
The only disadvantage i got so for is, this business is a bit boaring and will force you to do same thing again and again. Which is not so bad but in long run its pretty boaring. but if you are searching for ways to make money online then it should not be a big issue for you.
Future of Search Arbitrage
The Future of Search Arbitrage is very promising because of some facts. One of them is the amazing growth of the Digital Economy. But there are some challenges Search Arbitrage will face shortly. One of them is growing competition in the market. As technology develops day by day, advertisers find new and developed ways to reach their target audience. So competition for keywords will grow more in future.
In addition, Search Arbitrage will face the effect of increasing sophistication of search engine algorithms. As technology improves, search engines will be able to find out fake clicks which will create problems for search arbitrage to earn revenue.
But it is also true that, every day millions of people come to the internet to search for their product. That’s the main reason the importance of keywords will remain the same and search arbitrage will be able to earn more revenues in future. Also technologies will also help search arbitrage to fight their competition. Moreover, day by day people are introducing new tools for this industry, so people even can invest more money into it.
At last we can say that search arbitrage is a concept that has proven to be a highly effective monetization strategy. Despite all the risks and challenges involved, this thing is bound to remain prevalent within the digital advertising world. So everyone should be vigilant in adapting to the ever changing digital landscape to continue to benefit from this Search Arbitrage thing.
Thank You.
