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Value was : "search arbitrage" In essence, taking a profit out of google's adwords/adsense program while google kept fine tuning its pricing algorithm.

The term may sound fancy, but this business model has been questionable from the get go. I've read a few studies, and this type of practice artificially inflated prices on certain keywords, the process would start by these companies buying a few ads on the main google page(via adwords), if a user clicked on the them, they were sent to a landing page with more ads of the type(via adsense), in the hope's they would make up the difference clicking on more ads....that's were the 'arbitrage' came in, Google didn't have the pricing model right: to the tune of $100 million a year, its certainly isn't illegal, these companies just figured out what keywords were being paid more on the content side and cost them less to advertise themselves.

As an added note, this type of practice or 'search arbitrage' tends to beget more shady practices, since the revenue margin is so tight ( and its been getting tighter ) practices domain tasting and domain kiting, I wrote a more thorough piece on this whole subject: http://www.webforefront.com/archives/2008/01/advertising_con... ( Toward the end is a news link on how Google is cracking down on this type of 'search arbitrage' which more than often equals: domain tasting )




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