An AdSense arbitrage campaign consists of placing ads with Google AdWords (or one of their competitors like Yahoo! Publisher Network) at a lower cost-per-click that directs people to a website that displays higher paying Google AdSense ads.
Although, AdSense arbitrage is not as easy as it sounds. The success of an arbitrage campaign depends heavily on the actual click-thru percentage of your AdSense ads. For example, if you spend $100 in one month advertising your website, but you only earn $50 that month in ad clicks then you are losing money. Successful AdSense arbitrage campaigns earn more money in ad revenue than they spend placing ads.
- Make a list of potential keywords related to your website’s niche and run them through Google Adwords: Keyword Tool. Click the word “Competition” at the top to sort the results by competition. More competition equals a higher payout. Less competition equals a lower bid cost.
- Balance out competition with the number of global monthly searches. Keywords with a higher number of searches will drive more traffic to your website. For AdWords, you want to find terms with the highest number of searches, but the least amount of competition possible. When targeting your AdSense ads, you still want the highest number of monthly searches, but you want the HIGHEST competition possible to generate the most revenue.
- The key thing to remember is that your AdWords ads and website content must have some connection. You cannot run an AdWords ad targeting “Rhode Island refinancing” and then direct users to a page about Mesothelioma. Misdirecting people will result in less actual ad clicks (i.e. little to no profit) and can get you in serious trouble with Google.
- The keyword term “online mortgage” has a high number of monthly searches, but only about a 50% competition rate. The term “refinance a mortgage” has a higher search rate AND a higher competition level.
- You would want to optimize your AdWords ad for the keywords “online mortgage” and then target the content the webpage AdWords links to with the keywords “refinance a mortgage.” You can optimize the content by including the keywords in your URL, title tags, meta description and H1 (header) tags. Optimizing the page with the “refinance a mortgage” keyword phrase will help insure that you get more accurately targeted AdSense ads. Customers that are interested in online mortgages are also likely to be interested in mortgage refinancing, so you are not misdirecting them.
AdSense arbitrage requires some trial and error. You may even lose a bit of money before you start making money. However, once you learn how to pick your keywords wisely, the ends will more than justify the means.
Deborah Dera is a professional freelance writer specializing in a wide variety of topics related to online marketing, education, and technology. She is currently spends the majority of her time writing tech reviews for Cellphones.org.