Click Arbitrage has been the elusive white rhino of display advertising, since the dawn of the internet. The name of the game is buying the cheapest clicks you can to a webpage, and making more money in ad revenue than what the initial click costs. For example, say you buy a click for $.05 and make $.10 in revenue for every visit to your page. That’s a pretty good margin for click arbitrage. Now just do that a million times a day, and you have a pretty good cash flow.
Several years ago we were all killing it on the Adwords/Adsense arbitrage game. It was easy money till; the market got crowded, Adwords caught on, and the whole thing imploded. They hit us again in 2012 with the Page Layout Algorithm change, so even your monetized organic traffic dried up.
In walked Facebook Ads Newsfeed ads, and the game started again.
I’ll walk you through how to setup your own Facebook click arbitrage campaign, and how you can try and develop a profitable revenue source.
Step 1. Buy Cheap Traffic
There are tons of great ways to develop traffic. You can take the long road and invest in good content, try and build links, develop a social media presence, and try and grow a traffic stream organically. Or you cut your ramp up time to a matter of minutes, and just buy ads.
There a tons of new ways to buy cheap traffic sources; Outbrain, Taboola, Twitter, 7search, etc. But, so far the highest quality and cheapest cost has been Facebook Newsfeed ads. These ads have some of the highest Click Thru Rates (1%-4% range with good creative), and cheap Cost Per Clicks in the $.01 to $.03 range.
Step 2. Place A Lot of Ads on The Page
Once you get someone to the page, you need them to click as many ads as possible. You need to make sure that the $.03 you paid for the visitor, turns into $.10 in banner clicks. You increase your chances of that by placing as many ads as possible on the page. Adsense limits you to 3 ads per page but, you can work around this by placing other ad network on the page as well, sponsored content networks are a great way to fill up space, and still look like real content.
Also, strategically placed ads can confuse a user into clicking as well. For example this page:
If you are keeping count that’s 30 different ads on the page. In addition, this layout is an image based slider. So, if a visitor is sliding through each image, thats 10 slides at 30 ads each, totaling 300 ad impressions. If the average RPM on the ads is $4.00, that’s easily a profit margin of $1.17 cents.
In the end this page will have little to no organic traffic because of the large amount of ads on the page. However, that really isn’t an issue since the Facebook ad traffic is so cheap.
The basic formula for Facebook arbitrage is simple:
Cheap Clicks + High Pageviews per Visitor + Lots of Ads = Arbitrage Profit