Search Arbitrage (Search Feed Arbitrage) is a relatively new traffic monetization strategy that has been gaining momentum, especially in 2024. And we think it's about time we share some insights on what it's all about!
To put it simply, Search Arbitrage is a way to make money from traffic by buying it on advertising platforms at one price and then selling it to search providers at a higher price (ideally).
The basics of search arbitrage
Here's how it works: You buy traffic and direct it to a "monetized page" — this is called a search feed. The search feed contains key search terms from popular search engines, typically Google, Yahoo, or Bing. When a user clicks on one of these search terms, they are redirected to ads that advertisers have placed on those search engines, based on the specific keyword.
The search engines then pay for those ad clicks. In short, the user's journey within this funnel involves just two clicks — hence the term 2-Click Flow.
To break it down visually:
- You buy traffic from platforms like TikTok Ads or Facebook Ads;
- That traffic lands on a search feed page;
- Users click on one of the search terms, which takes them to ads from search engine advertisers;
- You get paid when users click on those ads.
How advertisers get on search feeds
In Google, for instance, traffic is routed to search feeds via a setting called “Include Google search partner sites.”
Search providers have strict guidelines regarding the quality of traffic and how it is sourced. You can't just monetize any random traffic — your traffic source has to be approved by the provider, and they'll monitor its quality closely. If the traffic you send is low quality, or if you violate the rules, you might not get paid, or worse, face further penalties.
Who are search providers?
Search providers act as intermediaries. They supply mediabuyers (like you) with search feeds to direct traffic to. Google or other search engines pay these providers for the traffic, and the providers then share a portion of the revenue with you, based on certain conditions.
Some of the most popular search providers in this space include:
What traffic types do search providers accept?
The most common sources of traffic for search arbitrage are TikTok Ads,
Facebook (Meta) Ads, and Taboola. However, the payout for each can vary significantly. Although many people claim that TikTok traffic is often valued higher than Facebook traffic.
But traffic source isn’t the only factor that affects your payout. Three key variables come into play:
- Vertical: This refers to the broad category you’re working within, such as Law, Health, or Marketing;
- Niche: This is a more specific subcategory within your vertical. For example, within the Marketing vertical, niches could include Digital Marketing, Email Marketing, or Social Media Marketing;
- Keywords: These are the search terms users will click on. Advertisers bid on these keywords, and you’ll get paid based on the cost-per-click (CPC) or revenue-per-click (RPC) for those terms.
Is it really that simple?
While the concept might sound straightforward, there’s a catch. The biggest downside to search arbitrage is that you're constantly in testing mode. The earnings per click (EPC) for keywords can fluctuate dramatically.
For instance, you might start out earning $0.60 EPC while paying $0.30 per conversion for a specific niche and geographic area. But within a few days, that payment could drop to $0.20, which can quickly make the whole operation unprofitable.
However, there are some upsides. You don’t have to worry about things like cloaking, bypassing ad moderation, or dealing with dubious practices. Plus, for those who care about ethical advertising, working with "clean" traffic can be quite satisfying.
Conclusion
Search Arbitrage is a fast-growing field that offers the potential for high returns, but it requires constant testing, monitoring, and adjustment. It's not a "set it and forget it" type of business — expect your payouts to fluctuate, and be prepared to pivot when necessary. Yet, for those who are willing to put in the effort, it can be a rewarding and relatively easy way to monetize traffic without the need for shady tactics.
