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Everything you need to know about running and scaling traffic arbitrage

zeropark

Traffic Manager
Traffic Manager
ZeroPark
Hey guys,

Some members of the community might embrace arbitrage offers and use them to the fullest. Others might not really understand the specificities, or simply do not want to get involved.

However, there are really great ways of transcending and excelling for those who have access to Bing or Yahoo! traffic and are experienced in the topic of arbitrage.

This industry segment is not the easiest to manage, but it is a profitable one. If you want to learn how to approach traffic arbitrage and better utilize your redirecting opportunities, read on and discover how to scale up your traffic arbitrage ventures.

☑️ What is traffic arbitrage?

Traffic arbitrage happens when the party buys traffic from a source and (through for example a landing page, banner ad, or native ad) redirects it to another, more expensive per click, one. It’s an opportunity to scale up and channel entirely new volumes of traffic to one offer.

In theory, it brings great results for arbitrageurs who know exactly what traffic to buy from ad networks like Bing Ads, Google Ads, or for example Yahoo!.

If you’re still asking yourself the question “How exactly does traffic arbitrage work?”, you might get a glimpse of it in the article, but do not expect precise answers. Traffic arbitrage is a very demanding segment of the industry, and without significant budgets, in-depth market knowledge, and broad experience, it will be really hard for arbitrageurs to profit.

The basis of the ROI is, in this case, a difference between a sum of money invested in the cheaper partner traffic, and the returns that are brought by the offer. Launching an ad campaign must be well-thought-out so that you do not buy non-converting arbitrage traffic. This is done via optimization and finding good impression sources.

Cost Per Action (CPA) is therefore the only measure of success for arbitrage traffic, and in many fields, it resembles the typical affiliate marketing solutions – but not entirely. The main differences are the complexity of the optimization process and the increased risk of not matching the traffic spending with the returns.

On the other hand, there is a benefit of reaching a highly converting, and safe traffic that a regular affiliate program would not be able to offer. See Zeropark’s platform to maximize your arbitrage traffic safety and conduct highly-effective Push and Native (thanks to Tonic. cooperation) offers.

♻️ A simple pattern of creating an arbitrage ad​

  1. Choose the right ad networks for arbitrage (for example Bing Ads, Yahoo!, Google AdSense, etc.)
  2. Make sure that your downstream partners allow traffic from the given network.
  3. Create an ad in accordance with compliance rules.
  4. Hide the real sources of traffic under the landing page, and run your campaign.
Remember that mainstream companies like Google, Yahoo!, or Bing have their policies and want to maintain the highest quality of arbitraged traffic. Therefore, you’ll need to put in the extra effort to make sure your feed is as clean as possible.

Although the steps seem really logical and simple, there are a lot of nuances that determine a successful arbitrage campaign. Getting your ad to convert is one thing, but making sure that it reaches good traffic, is a whole new world. The same goes for selecting the right verticals for it, GEOs, and obeying the compliance rules. You need to find suitably cheap, clickable, and quality traffic. Also, keep your scrub rate as low as possible. Not the easiest of tasks, but manageable.

A simple model of creating traffic arbitrage ad


➡️ What are the types of arbitrage?

One of the most important aspects that arbitrage specialists need to remember is where to purchase traffic, and how to utilize it in order to avoid losses.

But there are many types of reselling traffic opportunities, and it is highly recommended for arbitrage specialists to keep track of all of them. Broadening the spectrum of one’s advertising endeavors should be considered as development and diversification of business prospects.

Here are some of the types of traffic arbitrage you may, or may not, be already familiar with.

Search to Search Arbitrage​

This is an arbitrage between different search tools – just like Google and Yahoo!, or Yahoo! and Bing, for example. It’s based on a party buying a cheaper keyword from one search engine and directing a target audience to another engine for either the same, or very similar, but more expensive term.

So, whenever a source search engine is paid for the click, the arbitrageur must be sure that the selling price is higher than what they paid.

Display to Search​

This form of arbitrage includes banner ads. Generally, it should be way cheaper. So, an arbitrageur can buy traffic and then redirect it to more expensive (Cost Per Click) search results. This method requires more insights on how to prepare the banner campaign, but could be perceived as financially safer as this traffic should usually be cheaper from search keywords.

Native to Search​

To put it really simply, this method requires the arbitrageur to purchase cheaper, native traffic on platforms like Taboola, Yahoo!, or Outbrain, and then redirect the user to a keyword placed in the search engine like Bing, Google, or Yahoo.

As was announced, Tonic. has recently joined forces with the Zeropark platform, therefore broadening Native to Search offers for arbitrageurs who want to access highly converting and brand-safe traffic.

Social to Search​

Arbitrageurs can also purchase paid social media-based traffic from platforms like Facebook or Instagram. Social media clicks are typically much cheaper than keyword traffic for search engines, so directing users there should become a key to profit.

Zeropark Push to Search​

Push is Zeropark’s greatly effective PPC model of advertising, and with arbitrage, it offers even better results. There is a chance for big volumes as long as the arbitrageur knows what keywords to target, and what kinds of audiences to reach.

Push campaigns have been gaining mass popularity in 2021, and 2022 thanks to how convenient they are for users. When conducted correctly, a Push campaign can bring a lot of traction to the landing page, and with arbitrage Push to search traffic – to the chosen keyword. These ad impressions are highly valuable, and Zeropark’s push tends to do well for those arbitrageurs who know how to run ads on this CPC model with the best verticals and good traffic sources.

For suggestions on how to conduct push campaigns, see Zeropark’s #push ads blog tag. Remember that you can always contact your Onboarding or Account Manager for suggestions and tips for your campaigns.

Social to Search, Push to Search, Native to Search, Display to Search, Search to Search arbitrage


☑️ What niches to run with arbitrage offers?

Just like in the entire affiliate marketing industry, there are some hot niches that all advertisers should remember when setting up a new campaign. These might be evergreens, but jumping on the bandwagon will not guarantee a successful campaign. It will still have to be meticulously optimized, and well-thought-out to convert.

But treat these suggestions as recommendations! For updated ones, reach out to Zeropark’s team members. Every campaign is and should be, treated case-to-case, so it’s always best to consult on the go.

Some popular niches for arbitrage:
  • Culture and news feed.
  • Product comparison.
  • Education, student loans.
  • Finance, refinance, credit cards.
  • Medicines, Nutra.
  • Website building.
  • Insurance.
  • Antivirus.
Popular niches for the US market:
  • Website building.
  • Financial planning
  • Home, car insurance.
  • Accident lawyer.
  • Debt consolidation.
  • Antivirus.
  • Student loans.
The case is that you can try to run campaigns for everything as long as they do not violate the rules of the chosen feed you want to redirect your traffic to. This is, as you’ll discover in the ‘Challenges’ section, one of the hardest aspects of being an arbitrageur. The rules, depending on which feed you want your target to reach, could be stricter or looser, but at all times, they are applicable.

☑️ Summary: best practices for arbitrageurs

Arbitrage is not the easiest of ways to monetize traffic, but it’s surely recommended for everyone, who feels like they have enough resources and knowledge to be successful. What we would definitely, and universally, recommend for arbitrageurs is:
  • Testing the campaign. Find enough budget for the testing phase to be as useful, as possible. You want your decisions to be data-driven and not random so that you can find only the best sources for your arbitrage activity.
  • Keeping the traffic as clean, as you can. You do not want to lose your feed, so unless you want to take risks, make sure to filter out low-quality traffic. For some recommendations on sources, feel free to contact your Onboarding Manager in Zeropark.
  • Staying away from adult traffic, if you’re not sure of it. It’s not a piece of cake to have your adult traffic do well, and because of how strict mainstream arbitrage feeds can be, it might become your shortcut to losing it.
  • Choosing good verticals, and remembering seasonality. Just like in marketing in general, it will be best to know exactly what offers to promote to maximize the profits.
  • Staying compliant. Believing that you can fly under the radar is highly naive. Basically, if there are rules – you need to oblige. Fortunately, Zeropark’s Compliance team is there to help you with that.

⚠️ If you'd like to learn more about:​

  • Seasonality of the niches;
  • Best keywords for arbitrage;
  • Best GEOs for arbitrage;
  • Biggest challenges for arbitrageurs:


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Magda
 
MI
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