A final death knell to the once big buck game of "playing the spread" on ad buys across the PPC channels. Was a popular and very easy way to make money a few years ago, although for the past year or so felt like heavy lifting and no longer very worthwhile ( although I’m sure people have still done phenomenally well). It appears as if Yahoo – right now, will no longer be accepting artibraged traffic – ie – you will no longer be able to send cheap google clicks at their higher paying counterparts on parked, or simple contextual ad sites that serve no purpose other than to convert a high enough percentage of the visitors to cover your ad spend – plus, plus, plus..:-) A great resource across the board on lots of other internet marketing news can be found at the link below as well.
Yahoo Kills Domain Arbitrage: Fallout for Google, OthersTuesday, February 12th, 2008Yahoo will stop allowing arbitrage as of this Friday, will affect other major companies as well.AdvertisementIn a major move sure to have ramifications across the online advertising industry, Yahoo (YHOO) has told its advertising partners that it will no longer accept “arbitraged” traffic as of this Friday. Here’s a look at what this means for domainers and even the revenue of big online advertising companies.Arbitrage ExplainedClick arbitrage involves buying an ad click at a low price and the traffic to a page of ads with high-priced ads. For example, you may bid 5 cents for a click at Google and earn 25 cents per visitor clicking on your ads.Who does (did) it?Everyone from individual domainers to big companies such as Marchex (MCHX) and NameMedia. Individuals did it through parking companies such as Parked.com and HitFarm (sometimes using sneaky tricks on the latter). (Other parking companies, such as Sedo, expressly forbade arbitrage.) I’ve heard stories about people quitting their jobs because they were making so much money with arbitrage. Generally speaking, this arbitrage has been from traffic at Google and Microsoft sent to Yahoo ads.
Tags: PPC, arbitrage, conversion
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