All I found about mixing adsense/adwords is this: https://www.google.com/adsense/support/bin/answer.py?answer=9726&topic=140 I guess that is their blessing for doing arbitrage (if I understand the term "arbitrage": use adwords to generate visits on the pages with adsense?) My logic is, why couldn't you pay google to advertise your page that runs ads? Where is fraud in that?
it2s not allowed . when you saw that some stupid guys are doing this , report them to Google with clicking "Ads by Google" link
Hey they must be allowed, there are 100s of sites like that, top4sites...best8sites..etc. That are running such campaigns since months! They should have been banned by now, if it wasn't allowed.
arbitrage is legal as far as I've heard/read/seen. it's just difficult to flip a profit. the problem is that you have to advertise the site for what it is to be legal. so if you are buying adwords for your page about mesothelioma most of your adsense ads on there are going to be for the same thing. So it makes it difficult to flip clicks unless you can get a lot of low competition inbound clicks and a good amount of high competition outbound clicks.
Use a GOOD keyword generator and do some research into the niche yourself and its not hard to create tens of thousands of keywords about a subject and theres your low paying clicks for a high paying adsense niche. Use YSM, Adcenter, 7Search for traffic. Exactly if your MFA actually has what the user is looking for even if it is just a 200 word article its no different than any other site. The only reason most webmasters dont like MFAs is because MFA owners dont bid much on adwords obviously to get a good ROI from adsense which leaves you guys getting lower earnings. Google dont care since MFA= more money.