Adsense Arbitrage: What Is It All About?
AdSense Arbitrage: What Is It All About?
To even start discussing AdSense Arbitrage, one has to have knowledge of AdSense. Basically, AdSense is a program run by Google that enables website owners to sell spaces in their websites for other people to place advertisements on.
What makes this whole system unique is that, unlike ordinary online advertisements that can be pushy and abusive nowadays, AdSense advertisements are chosen to be relevant to the contents of the website selling the advertisement spaces.
While the whole service comes for free, website owners earn money each time a website visitor clicks on the advertisements that run with AdSense program. Today, small Google advertisements populate countless websites, including blogs. These advertisements are designated by keywords and advertisements are placed by auctioning these keywords to advertisers.
These targeted keywords turn out to have monetary value. And this whole system opens the potential for web owners to earn more than what ordinary online marketing schemes can offer. This is where AdSense Arbitrage comes in. AdSense Arbitrage is a model or an online marketing tool that aims to enable website owners profit more from advertising. While it promises to bring in profits, the sad news is only a few understand how it works.
Arbitrage is actually a term used in commerce or finance that refers to a synchronous buying and selling of commodities in various markets. Such procedure will enable the trader to ultimately profit from the differences of prices in the markets. Arbitrager is practiced to take advantage of the discrepancies between markets. For Internet marketing, particularly contextual or paid-search advertising, the way to apply the principle of taking advantage of market imbalance is through AdSense Arbitrage.
Through AdSense Arbitrage, website owners basically make money by bidding on or buying cheaper keywords or terms from other advertising programs and then direct Internet users to websites that utilizes AdSense or other publisher network advertising programs that pay higher. When directed web visitors click on the advertisements on the websites that have higher payout, the website owner profits as the money spent for keyword auctions to drive the traffic to the website is lower than the money earned on the clicks made on the website advertisements.
Here is a step by step outline of how AdSense Arbitrage can put more money in your wallet.
1. You, as a website owner, will bid for cheap keywords or contextual advertisements from other websites online appropriately using your Google Adwords Account. Your purchase of keywords or contextual advertisements will consequently drive Internet users to your website where you write contents that appeal to other advertisers that have higher payouts.
2. Having many cheap advertisements on your website will increase the probability of Internet users being directed to your website. An Internet user will likely click on one of your cheap advertisements and will be directed to your website; where he or she will find more advertisements, this time including the high-paying ones placed by big advertisers.
3. If a website visitor clicks on the advertisements on you website that has been placed by advertisers who have higher payouts, you make money on the difference between the amount you used for the bidding of cheap advertisements and the amount of money big advertisers will be paying you for the click made by your website visitor, less the amount of Google's cut of course.
In essence, AdSense Arbitrage makes you use the cheaper keywords or contextual advertisements as baits to lure visitors to your website where other high paying advertisers have put up their advertisements. In effect, you are taking advantage of the differences between the prices of advertisements. You are practicing arbitrage by simultaneously buying cheap advertisements and opening your website for high paying advertisers.
While the whole system sounds perfect and easy. There are, however, loopholes where AdSense Arbitrage may not bring in the amount of money you want. Take note of the following facts that could eat away your profits.
1. Your website visitors who have clicked on the cheaper bait advertisements may not be interested on clicking on other advertisements on your website. In fact, visitors will more likely avoid advertisements.
2. Not everyone who visits your website would click on your advertisement. Worse, those who do click on your advertisements never get to click the ones placed by high paying advertisers; which means, you do not get paid.
3. Some Internet users may use your high paying advertiser's website address directly to access information about their products. This way, your advertiser will never know that your visitors have learned about them through your website. Again, you do not get paid.
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