PurpleBlack Blog: Nothing but Native Advertising

Arbitrage Campaigns and Native Advertising Traffic Sources

Everything You Need to Know About Monetizing Your Site

When going through any website, you’ve likely come across features and articles like–How to Lose Weight in 10 Days. You wouldn't be wrong if you passed them off as uninteresting native advertising. But, you wouldn’t be entirely correct, either. That’s because the field of native ads has a far broader scope and encompasses other advanced marketing solutions. Today, we’re talking about arbitrage campaigns and how you can use this exciting revenue-generating model to earn profits.

Arbitrage Campaigns Don’t Need Professional Expertise to Generate Revenues

From the looks of it, running an arbitrage campaign is easily done. Say you’re a solo entrepreneur with an advertising budget of 30K, 40K, or even 50K per day. All you need is a computer, a stable internet connection, and some basic knowledge about how to create ads. Without an elaborate infrastructure, you can get the desired results and profits with arbitrage campaigns. You’ll set up a WordPress site and ensure you start getting some amount of traffic. Next, you’ll contact Google AdSense and request to implement their banner ads. Once you acquire Google approval, you can display the banner ads. For every impression on the banner, Google AdSense pays you a small amount.

The objective is to attract maximum traffic.

The key here is to attract traffic to your website. You want readers to land on your site and click on the banners. And, for that to happen, you must create and publish engaging content to attract traffic. However, getting traffic organically has only limited scalability. This is why you’ll rely on other sources, such as Taboola, Outbrain, RevContent, and more. In other words, you’ll rely on native ads.

The Key is Invoking Curiosity with Enticing Content

native_advertising

In essence, earning revenues by using arbitrage campaigns is easier with native advertising than with social media platforms like Facebook, Instagram, or any other. That’s because arbitrage is all about generating and satisfying curiosity. Audiences are curious and interested in reading sensational bits of information. Any headline, catchy and tantalizing enough, will attract readers’ curiosity. If you dig deeper, that’s what the arbitrage business model is all about. Posting content that evokes and entices interest.

You’ll add enticing headings and attention-grabbing images.

You’ll also notice that articles and ads like these don’t have a Comments section. That’s because the objective is not to get comments, which can possibly be both–positive and negative. Controversial, provoking, and unpleasant comments can also earn website account bans, which are best avoided. Then again, native advertising is more economical since the Cost Per Click (CPC) and Cost Per Mile (CPM) are much lower. As long as you have an enticing heading and attention-grabbing image, you’ll undoubtedly get more clicks than on Facebook or Google.

More Clicks Translate into Higher Revenues

Once viewers click on the link and arrive on the website, the objective is to get them to click the maximum number of times. To make that happen, arbitrage marketers create detailed image galleries or slideshows. Each of these will have anywhere from 7 to 12 images. And, when the reader wants to read the next piece of content or view the next image, they must click on the arrow. Of course, a reverse arrow is also available if they want to go back and reread the previous slide. 

Since the page reloads with each new click and image, Google Adsense views it as a new visitor. So you see, if the reader clicks on the page 12 or 15 times, you’ll add up 12 or 15 impressions. And, you can earn all that revenue from just one site visitor.

You’ll Source Traffic from Cheaper Platforms

In short, Google pays you a specific amount for every impression or click. Now all you have to do is make sure that clicks from native advertising traffic sources are cheaper. These sources can include Outbrain, Taboola, Yahoo Gemini, RevContent, or any other. Essentially, you’ll deduct your traffic cost from the revenue generated from Google, and the balance is your profit. You’ll need exceptional headlines, hi-def images, and infrastructure for this business model to work. And, to set it up, you’ll invest money.

Arbitrage Campaigns Need High Investment

The issue with arbitrage is that it requires significantly more investment than just, say, $100 or £100 per day. That’s because arbitrage has a narrow margin and requires higher inputs. For instance, for every $100 you invest per day, Google pays you around $102 per day for those impressions. That leaves you with a profit margin of just $2, which is negligible and certainly not worth your time. This is why, you’ll need to invest at least $3000 to $4000 per day for the arbitrage to generate adequate revenues successfully. Only then can you add up enough cash flow and get liquidity to make the entire business viable.

So you see, three main aspects come into play here. Developing a website, getting Google’s approval, and then, acquiring cheap traffic. The problem is that when you’re investing high amounts of money, you’ll also have a higher Cost Per Click (CPC). Also, you’ll factor in ad burn and ad fatigue. When you invest 30K, 40K, and 50K per day, you must also develop compelling content. Only then can you get adequate traffic for the website to become profitable.

Scaling Investment Brings You Higher Returns

Yet another factor is scalability. When you start off with 2K, 3K, or 4K per day, scaling it up to 20K, 30K, and 40K is quickly done. You can expect it to take anywhere from just 9 to 12 months, which is impressive. So, you see, arbitrage is just one aspect of native advertising that has the potential to earn big money. That is, if you can set up the infrastructure and invest money into it. The underlying objective is simple. Purchase traffic at low costs and get Google to pay you for the impressions. 

You should be ready to invest at least $2K to $3K per day on native advertising. At the same time, you need to understand current trending topics and the kind of content that people want to read. If you can generate adequate curiosity and entice visitors to visit the site and click around–that’s what arbitrage is all about. 
So, where do the folks at Purple Black come in? Our job is to develop native ads for you and assist you in setting them up on your website. We also have advanced software to help you track traffic and conversions. If you’re ready to know more, contact us by Clicking Here let’s discuss how you can combine arbitrage campaigns with native advertising to monetize your site.