Hi.. I was wondering about the following scenario wich I've read about : Someone takes an article with high paying keywords and optimizes that page ... and then sends traffic there through PPC campaigns... Now they are making loads of cash ... they call it adsense arbitrage... My question is : Does this really work ? Just to take 1 article and keep making money from that 1 article ? Sounds a bit to simplistic to me ... If so .. then why make a site or blog with loads of content ? FOP
...for the same reason why you don't put all of your eggs into one basket. What if that one article causes alot of people to click the back button on their browser, instead of viewing the many articles that might have that could have better appeal to the visitor? Its also the reason why farmers don't plant one type of seed... you need to diversify.
Try this http://forums.digitalpoint.com/search.php?searchid=2649928 and this http://forums.digitalpoint.com/showthread.php?t=227945 DD
I believe arbitrage to be a money losing strategy. In my opinion you just have to run the numbers to see what the results will be. (These are purely hypothetical numbers) Let's suppose that I am getting a 10% click thru rate and that I am getting $0.25 per click, on average... According to these numbers if you get 1,000 visitors a day, 100 of them will click the ads on average, and on average you will have made $25.00 ($0.25 CPC * 100 visitors) How much would you have to spend on a Pay per click campaign to get 1,000 visitors? (more made up numbers) If you have a PPC campaign and you are paying $0.10 per click to get visitors, you would pay $100.00 to get those 1,000 visitors...This results in a LOSS of $75.00 ($100 spent - $25 earned) If these numbers were accurate, you could afford to pay up to $0.025 and even then you would only break even. 1,000 visitors * $0.025= $25.00 This is a very simplifed scenario and of course many other factors come into play, but simply put, can you make a profit from arbitrage? I don't think so.
If you pay less for buying clicks than what you receive for the ads hosted on the site, then you've made an easy profit but since July..Google has change their algorithms so that the content of your landing page now contributes to a PPC advertiser's ad rank and minimum bid. so if the page your sending to traffic (from adwords) is full of adsense and no real content you could loss money...better explanation here http://searchenginewatch.com/showPage.html?page=3623543
Adsense arbitrage only work for people who are skilled enough at manipulating the keyword system. Most people that try it, fail. I would stay away from it.