Google Arbitrage

Google Arbitrage Beware!

Have you ever clicked on a Google ad that you were interested in only to windup on a page full of other Google AdSense ads and or affiliate ads without providing you with anything close to the information that you hoped to find there?

If so you probably were a victim of the dreaded “Google AdWords Arbitrage.”

AdWords arbitrage works the same as any other arbitrage type of profit scheme.
 
This principal has been used for years in the stock market. Arbitrage is very simple…you buy a stock when it’s price drops and turn around and sell it when the price goes up to make a profit.

Now to apply this to making a profit from Google AdSense, a person loads up an AdWords campaign with thousands of low cost per click keywords for a given niche. When someone clicks on one of their campaign ads, they wind up on a landing page mainly showing some “High” paying AdSense keywords.

Here’s an example;

I did a quick search and found the term “mega health insurance” can pay around $23.00 per click.

A person doing an AdWords Arbitrage would search for as many low cost per click keywords that can be associated with the health insurance niche.

Then they would write some AdWord ads and run numerous campaigns in hopes that if people click on an ad for a keyword that is costing them .20 and are taken to a landing page optimized to show High cost per click AdSense adverts, that these unsuspecting surfers may click on one or more of the high paying ads and cha-ching, show me the money!

This poses several problems for Google.

First, it is degrading the quality of the search results for many of these high paying niche keywords.

Second, it cheats the AdWord advertisers due to the fact that the high priced clicks that they are paying for are now bringing in far less targeted traffic.

Third, advertising is the life’s blood of the search engines. If the problem of these low quality landing pages isn’t addressed it could spell financial trouble in the future.

Google recently announced on its AdSense blog that the times they are a-changing.

From time-to-time, we improve our algorithms for evaluating landing page quality (often based on feedback from our end-users), and next week we're launching another such improvement. Thus, over the coming days a small number of advertisers who are providing a low quality user experience on their landing pages will see increases in their minimum bids.

We realize that some minimum bids may be too high to be cost-effective -- indeed, these high minimum bids are our way of motivating advertisers to either improve their landing pages or to simply stop using AdWords for those pages, while still giving some control over which keywords to advertise on.
Source: Google Inside AdSense Blog

SEO tricks may still work for now, but believe me that if you want to succeed long term on the Internet, you need to gear your SEO to working with the SERPS and forget trying to out run them.

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Google Arbitrage
Google arbitrage works the same as any other arbitrage type of profit scheme.