Traffic Arbitrage: A new business opportunity!

If you thought you knew all the ways of making money online, traffic arbitrage is here to prove you wrong.

Heard the term but don’t really understand the concept? Familiar with traffic arbitrage but curious how to track this kind of traffic? Just browsing? This article is for you.

We tell you what the whole fuss is about, how it works (and why it’s brilliant), and how to set everything up in the best way possible.

  • Are you an affiliate marketer looking for a new monetization opportunity?
  • Do you have lots of traffic that you think could be converting more?
  • Are you interested in the industry’s hottest trend?

If you have answered “Kiss me on the lips and call me yours, of course I’d like to know more!” to any of these questions, you are in for a treat!

What Traffic Arbitrage is?

Traffic arbitrage is the situation when you purchase traffic and then resell it and make money on the price difference.

How Does Traffic Arbitrage Work?

The typical marketing scenario looks like this:

  1. An ad is displayed to an audience outlined in a traffic source’s setup.
  2. A click on this ad sends a visitor to a landing page, and later to the offer page – provided that this visitor demonstrates an interest in it.
  3. A tracker records all these events.

Can you see the flaw in this scenario?

Sure you do, you are a smart marketer. After all, you are reading this article! 

But let’s write this clearly for your not-so-wise friend that is reading this text with you.

The flaw is that you can’t really tell what your audience is really interested in. You assume that some general criteria are enough to define their intent:

  • People that have Samsung Galaxy phones want cases for their phones, right? That sounds reasonable.
  • iPhone users should be interested in crypto offers, right? Why not others? Why them? It is more of a gut feeling.
  • Hmm, who should be the target for house security offers? Gaming affiliate programs? 

Your own traffic or the traffic you bought in a traffic source is qualified only once: by an ad that determines general intent.

What traffic arbitrage brings you is the option to double qualify visitors by granting you access to the world’s best search feed.

Here’s how it works:

  1. A visitor clicks a relevant ad. This could be a native ad but also banner or other ad type. Let’s assume that this ad says ‘Time travel!’. This is the first qualification.
  2. The visitor is then directed to a special landing page that contains search results related to the ad. A visitor sees search queries such as ‘Cheap time travel’, ‘Best time travel gear’, ‘Easy fix to grandfather paradox’. Clicking on one of these queries is the second qualification. 
  3. An ad tracker records all these steps until the conversion occurs.

Can you see the brilliance? I know you can, but let me explain it clearly for your dumber friend that is overlooking this article.

Because of this double qualification, a final offer is much closer to the visitor’s interest, and therefore, has much higher chances of converting.

What are the types of traffic arbitrage?

There are different types of traffic arbitrage, depending on the ad type used:

  • Native to search
  • Social to search
  • Search to search

Is traffic arbitrage for everyone?

Although it may look like a monetisation method similar to others, traffic arbitrage is not for all. Because the margins are usually low, you need to have a serious stream of traffic to make the whole endeavor profitable.

We’re talking about $2,000 of ad spend a day.

If you operate on such high volumes then you should contact a traffic monetization platform that specializes in traffic arbitrage. 

How does tracking work with arbitrage?

Traffic arbitrage platforms provide some basic tracking functionalities, so you can see which campaigns are most profitable and what search queries get clicked the most.

However, if you want to get the most out of your traffic, a tracker will work great in conjunction with a traffic arbitrage platform. 

As we have said, this is a big numbers game in which a small tweak may result in a significant boost of conversions. This tweak may come from:

  • Better targeting in your traffic source. Once you learn about your audience by analyzing data in a tracker, you will be able to define more precisely what works.
  • Improving ad quality. A/B testing different ad variations may help you detect the most performant ad variation for a given audience. 
  • Quicker reaction time. When you set various alerts, you will be able to react more quickly to sudden changes in traffic patterns or setup errors.

The setup is very simple: the campaign link that you will get from a traffic arbitrage platform will serve as an offer link in Voluum. This however, means that, in most cases, you won’t be able to track clicks on concrete search queries unless the platform allows you to put Voluum’s direct tracking script to the search result page.

This is unlikely – but more probably you will be able to pass information about which search query resulted in a successful conversion in a postback URL. Voluum has the Custom conversions feature and traffic arbitrage platforms should support sending additional information in a postback token.

Contact your account manager to learn the details.

Digital marketing offers a lot of possibilities

The aim of this article was to familiarize you with an alternative traffic monetization method. If you think that traffic arbitrage is for you and you meet the acceptance criteria in terms of traffic volume, look for a trustworthy arbitrage platform.

When it comes to getting a trustworthy tracker, look no more – Voluum has got you covered. State of the art traffic automation, robust reporting engine and flexibility that allows it to be adapted to various scenarios make it the perfect candidate for your adventure with arbitrage.

Get Voluum and squeeze the most out of your traffic

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