Unlocking the Power of Search Arbitrage: Making Money with Low-Cost Clicks

search Arbitrage is essentially the
taking advantage of price differences
for the same product Google can sell a
click for two dollars but it only has a
limited amount of people looking for
that search term compared to the amount
of advertisers willing to pay two
dollars for that term
you as an Advertiser can use that to buy
traffic on tabula send it to a park
domain that then sends feeds search
feeds traffic to Google or Bing or Yahoo
and then Google or Binger Yahoo through
a feed provider will pay you for that
click
that's the introduction to search every
trash most of the time I would say
eighty percent of search ad spend right
now is in the US market why because
around 50 of global ad spend on taboola
is in the US it's where the epcs are the
highest it's where Google search
advertisers will pay the most for a
click but
in the rest of the world
The Click prices on tabula do not
compare to the click prices on Google
the average CPC in 2021 in Italy was
four cents
the average CPC for a desktop click in
the US I'm guessing it's closer to 65
right now so you're talking about
markets that from a GDP standpoint there
is a difference but there's not a 20x
difference and so what I've done in the
last weeks is I've created
a little bit of a hypothesis and I've
tested it in February what are high
vertical payouts so dental insurance
divorce lawyers
stuff that people need and are willing
to pay for on an advertising side a lot
so dental implants are a very popular
one because typically the margins and
dental implants are really really high
you can think about things like Plumbing
or car insurance or even debt offers
that where where the advertiser has a
really high margin on the click that
he's buying on Google and is willing to
pay a lot of money comparatively for it
I've taken that approach and compared it
to where taboola has low priced high
quality inventory tubula covers a lot of
markets not all of them equally but
there are markets that are doing
surprisingly well when it comes to a
quality of the click that have dirt
cheap prices I'm currently buying Clicks
in Turkey for a little bit less than 0.7
cents
it's going great and I'm making a lot of
money because search advertisers are
going to pay substantially more for a
dental implant like in Turkey then I'm
going to be paying on tabula that's what
Arbitrage is about and that's what a lot
of Arbitrage advertisers forget when
they're uploading campaigns they see the
Big Shiny EPC a dollar fifty in the US
on Dental great but your click's gonna
cost you 35 cents you can be making 30
cents in Italy
and paying three cents for a click and
have a much higher margin
percentage-wise than you would running
Dental in the US against a thousand
other advertisers that might have more
budget more experience than you do using
this I've made a good amount of money in
the last few weeks testing this
hypothesis these are some screenshots
from February I had to submit my
presentation on the 17th so here you go
from the 16th from France and Southeast
Asian campaigns aggregated together
I'm spent I'm one person
spending maybe an hour a day running
these campaigns with margins that will
wipe the floor with anyone running a US
search sure I'm not spending 50k a day
on each of these verticals but
aggregated your spend can be substantial
remember half of tabula spend globally
is not in the US
there's a lot of other markets that you
can Target there's a lot of other
markets that you can spend money on on
the same verticals with near identical
ads so the same image with a translated
headline and make margins that are not
comparable to what you're doing right
now in the U.S I'm not saying the US
isn't a lucrative Market I'm just saying
the rest of the world is a market that
is absolutely underutilized for search
Arbitrage
This Together these markets are the ones
that I've tested in the last few weeks
I've made between 30 to 100 Roi in
February
it works again I have a million other
things that I'm doing and it's been
extremely lucrative with extremely
little of my time compared to the output
that I've been able to achieve there