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Search & social · also called search feed arbitrage, RSOC

Search arbitrage

Search arbitrage is buying cheap traffic, often from social or native ads, and sending it to pages that show search-style ad links, earning money when visitors click those links.

The short answer, from the AdTech Sumo glossary

Search arbitrage exploits the fact that search ads pay well per click. An operator buys visitors cheaply, for example via paid social or content recommendation widget ads with teaser headlines, and lands them on a page with a few lines of content and a set of "related search" links. When the visitor clicks, they see a page of search ads syndicated from a provider such as Google or Microsoft through a search feed partner, and the operator earns a revenue share on any ad clicks.

It is a form of traffic arbitrage, and legitimate versions exist within ad platforms' syndication policies. But the model invites abuse: misleading ads to generate the first click, forced or confusing redirects, parked domains, and at worst bot traffic or click fraud on the search ads. Advertisers whose search ads run on these syndicated placements may pay for clicks from people who never intended to search for them.

Search providers set strict policies for syndication partners, and advertisers can often opt out of search partner networks or review placement reports.

Think of it like this

Search arbitrage is like standing outside a mall handing out vouchers that lead people to a directory kiosk, and earning a commission whenever they tap a shop listing.

An example

An arbitrageur pays US$0.08 per visitor from social ads; 30% of visitors click a related-search link and 25% of those click an ad paying the operator US$0.60 on average, so it earns only US$0.045 per visitor and this campaign loses money.

Related terms