Learn Search Engine Marketing

What is keyword arbitrage?

Keyword Arbitrage is the practice of buying low priced keywords to generate traffic to websites which contain higher priced versions of ads. For example, let us say you are utilizing a Contextual Advertising Program like Google Adsense on a website about Search Engine Optimization which displays ads that have a payout of $1.00. With keyword arbitrage, you develop a keyword list that contains low cost, relevant keywords, maybe with a cost of $0.10, in hopes of trying to generate clicks on your high paying Search Engine Optimization ads. During 2006, I had done very well with keyword arbritage. Take a look at my earnings in 2006 from keyword arbritage in the screenshot on the top right handside of this post.

Does keyword arbitrage work?

I will honestly say that keyword arbitrage does work in terms of generating revenue if it is done correctly. Analysis and testing are the key components in terms of developing a profitable keyword arbitrage campaign. You need to be able to research high paying keywords, write content to force these contextual advertising programs to serve up those high paying ads and develop a very robust yet relevant low cost per click keyword list.

There are many other metrics involved in terms of enhancing both clicks from your PPC campaign, which is the driving force behind your keyword arbitrage campaign, and your web pages ad unit Click through rate. Ad copy for your campaign is crucial. You need to create ad copy that informs searchers that they will be encountering a web page that contains information on a particular subject before they click on your pay per click ad.

If users are about to click on your ppc ad with this notion that will be encountering some other form of information when they reach your webpage, you will be wasting clicks and your profit margins will be lower or have a negative impact on your keyword arbitrage campaign.

I am not recommending that you start a keyword arbitrage campaign. This post is only for information purposes in regards to keyword arbitrage and what keyword arbitrage entails. Keyword arbitrage lies in a grey area in terms of business ethics. Keyword arbitrage hurts Pay Per Click credibility due to the fact that the clicks that you are generating on your web pages most likely will not enhance the advertisers Return on Investment in terms of their Pay Per Click and Search Engine Marketing campaigns. The secret incredient to my keyword arbritage was the use of Word Tracker. Word Tracker is a great tool that will help you identify low hanging fruit in terms of keywords. A great way to drive cheap targeted traffic that helps your keyword arbritage campaign convert. You can signup for a free trail of Word Tracker here.