17 OCTOBER 2024
Search Arbitrage Secrets: How to Turn Clicks into Profit
What is Search Arbitrage?
Search arbitrage is a relatively new concept that involves buying clicks on search engines or other sources at a minimal cost, and then redirecting that traffic to a specific landing page known as a search feed. This feed acts like a showcase of offers, displaying promotions based on keywords that generate a higher revenue per click or action.
Your goal is to profit from the difference between your ad spend and the revenue generated from clicks.
How does it work?
Step 1: Keyword Research and Ad Launch
As an affiliate marketer, you start by choosing a niche (like finance, dating, or healthcare) and using tools like Google Keyword Planner to find keywords with low competition and high search volume. Once you've got your keywords, it's time to launch targeted advertising campaigns aimed at a specific audience.
Step 2: Redirecting Traffic to Search Feed
Based on the selected keywords, users will be redirected to a landing page. This is facilitated by content providers (such as System1, Domain Active, and Tonic).
Step 3: Generating Profit
You earn revenue from clicks and ad impressions. Additionally, you can benefit from conversions when users engage with affiliate offers. Your profit is calculated by subtracting your advertising expenses from your total income to ensure effective monetization of low-cost traffic.
Search providers and search feeds
Search providers are intermediaries that grant affiliates access to search feeds. Google and other search engines pay these providers for traffic, which they then share with you.
Advertisers reach search feeds by enabling a Google setting called "Include Google search partner sites." This allows them to extend the reach of their campaigns, but requires them to adhere to the quality standards of the search providers. Misuse of traffic can result in payment denials or penalties.
Top Search Providers:
SEDO
Adw net
Tonic
System1
Domain Active
Ads com
Traffic Sources for Search Arbitrage
First, it's important to understand that search providers closely monitor traffic quality. Here are the key factors that influence your traffic source selection:
Vertical: The broad category you choose, like finance, travel, or education.
Niche: Specific subsegments within a vertical. For example, within the finance niche, you might include auto loans, cashback credit cards, or investment platforms for beginners.
Keywords: Searches that users click on that attract advertisers. This is what you get paid for (EPC/RPC).
Primary sources of traffic:
Paid Search Traffic: These ads appear on platforms such as Google, Bing, and Yahoo and are labeled as "sponsored." They typically occupy the top positions in search results. The main benefit is their direct targeting: your ads are shown to users who are actively searching for relevant keywords, increasing click-through rates.
Social media traffic: Advertising on social media allows you to reach a wider audience, helping you to attract new visitors to your monetization pages. Major platforms include TikTok ads and meta ads.
Native Ads: These ads are organically integrated into website content, often resembling articles. This format is less intrusive and can lead to higher click-through rates, as they appear as part of the page.
Display Ads: Various banners or videos placed on websites, which can be launched through networks such as the Google Display Network. Visually appealing creative increases click-through opportunities.
Mobile Ad Networks: Videos and banners integrated into mobile apps, allowing you to reach a wider audience of mobile users.
Choosing Your GEO and Niche
Start by identifying two crucial points: what to promote and where to do it.
Choosing GEO: Currently, top GEOs are the USA, followed by Europe and Asia. Opt for regions with high traffic and low competition. Conduct research and A/B tests across various traffic sources and countries to identify the best-performing combinations.
Choosing a Niche: Pick niches that have high demand. Some lucrative options include:
Finance: Personal finance and investment tips.
Security: Business security services.
Healthcare: Products related to health and wellness.
Pros & Cons of Search Arbitrage
Pros:
Most offers are legitimate, which makes it easier and more pleasant to work with, and allows you to avoid cloaking, moderation bypasses, and similar issues.
Pay-per-click: You earn directly for clicks on sponsored links, with no additional user action required.
Unlimited advertisers: Access to all Google Ads advertisers provides numerous traffic opportunities.
No traffic limits: You can scale campaigns without limits.
Ad network loyalty: Most ad platforms have a positive attitude towards search arbitrage and rarely reject ads.
Cons:
High entry threshold: Getting started with search providers and testing profitable keywords requires significant budgets.
Long holds: Significant holds on payouts, NET 30 or NET 45, depending on the feed provider.
No fixed payment per click: Payment amounts can fluctuate due to Google Ads' auction model for buying traffic.
Large startup budgets: Significant budgets are required to test profitable keywords, which can be a barrier for newcomers.
Ongoing testing: Ongoing testing and optimization is necessary, as the EPC for keywords is dynamic.
What you need to get started.
Access to a provider: You can get access directly through a complex partnership application process or by working with a reseller, a company that already has access and offers it for a percentage of revenue.
Budget: It's best not to jump into search arbitrage on a shoestring budget. Set aside enough for testing. Also, some providers may shut down your account if you don't spend the amount initially agreed upon.
Tools:
Tracker: For tracking and optimizing campaigns.
VPN or Proxy: For access to any GEO, restricted access markets or risky niches.
Strong accounts: To handle high volumes, you need strong accounts with high spend.
Creatives: Depending on your niche, you need to create relevant creatives. Static or dynamic, whatever is effective can convert even the simplest of images.
Tips
Keyword selection: Use long-tail queries to reduce click costs and attract a more targeted audience. For example, instead of a general term like "VPN," choose the phrase "best VPN for travel"-it's cheaper and brings in targeted users.
Avoid trying to "fool" providers: Don't click on their ads to make a profit, don't mix traffic from other sources into your feed, and avoid misleading claims and unrealistic promises. Trying to fool providers can leave you empty-handed.
Focus on testing: Set aside at least 30% of your budget for testing. This will help you identify the most effective traffic sources, creatives, and GEOs that drive high conversions at a low cost.
Optimize Creatives: Ensure that your creatives are not only tailored to the source and placement, but also aligned with your niche and GEO.
Diversify Traffic Sources: Don't rely solely on one traffic source, experiment with different channels. This approach can increase profits and reduce the risks associated with relying on a single source.
Constantly Analyze Results: Use a tracker to monitor key performance indicators (CTR, conversion rates, etc.) and analyze them on a regular basis.
Conclusion
Search arbitrage can be a great opportunity to make a decent profit, especially if you have a budget, a small team and a bit of experience. If you choose the right niche and test and scale your campaigns thoroughly, this is the way to a steady income.
