With One Stroke Google Shuts Down Adsense Arbitrage For Good!

Isn’t it interesting how every time that Google clamps down on Adsense/Adwords arbitrage a flurry of fantastic and irresistible (for newbie marketers that is) arbitrage offers suddenly flood the internet? But more on that later, for now let me explain what Adsense arbitrage is just in case you don’t know.

Google runs the largest and most popular pay-per-click advertising model on the internet, commonly known as Google Adwords. The attraction of Google Adwords and other pay-per-click models is that you can draw almost instantaneous traffic to your website or blog. This is extremely convenient for those webmasters whose sites are new because getting relevant traffic to your internet real estate is perhaps the biggest challenge for most new internet marketers.

Pay-per-click advertising models such as Google Adwords require the advertiser to bid a certain amount on a particular keyword in order to get their ad strategically located on the SERPs (search engine results pages). For a better/higher placement of your ad on the SERPs you need to bid more for whatever keyword you’re targeting. Every time someone clicks on an advertiser’s ad, they are immediately transferred to the desired destination url that the advertiser designated when setting up that ad.

Also every time someone clicks on an ad, the advertiser is billed the amount they bid or sometimes less; hence the name pay-per-click advertising. The drawback to pay-per-click advertising is that if you are not careful you can rack up some pretty substantial fees with little profit to show for it.

The flip side of Google Adwords is Google Adsense. In actual fact Google Adsense ads are really Google Adwords, save for the fact they are located on individual websites and blogs as opposed to the search engine results index page (same thing as SERPs).

Google Adsense is an extra-monetization system for webmasters who display such ads (Adsense ads are what are known as Adwords For Content) on their sites. Webmasters (Publishers) get paid the amount the advertiser bid to have that ad displayed minus Google’s cut of course, which is 50%!

PLAYING THE ARBITRAGE GAME

As you can see there’s a strong correlation between Google Adwords and Google Adsense which so happens to be the basis of the whole Adsense arbitrage technique. Wily marketers realized that if they could bid on cheap Adwords and send a lot of traffic from there to MFAs (Made-For-Adsense sites), which traditionally had little else on them except high paying Adsense ads, then those marketers could make a killing! And many of them did!

GOOGLE YELLS: ENOUGH IS ENOUGH!

But soon enough, because of abuse of the Adwords/Adsense system, many advertisers jumped ship and took their business elsewhere. Of course Google was not happy with this turn of events because this resulted in a substantial loss of revenue for them, thus by incremental degrees they clamped down on those sites that were abusing the system. But it seemed that every check they put in place was countered by the wily Adsense profiteers.

For example a while back Google implemented the Adwords quality-landing-page algorithm, which basically was aimed at Google Adsense templates and MFAs, as well as nullifying the system of buying wholesale cheap (irrelevant) traffic with the sole purpose of getting said traffic to click on the Adsense ads that-more-or-less constituted the destination website in its entirety!

The way in which the Google Adwords quality-landing-page algorithm worked was as follows: if Google determined that a website offered little useful content (in other words was nothing more than an MFA); or if the content on the destination website widely varied from the description of the targeted keyword of the Adword ad from whence the traffic originated, then Google made sure that the webmasters of such offending websites had to bid much more for their Adwords keywords than the amount they made as Adsense revenue when someone clicked on the ads on their sites.

The Adsense profiteers countered this move by abandoning Google Adwords altogether in favor of other pay-per-click models such as Yahoo Publisher Network, Kanoodle and Miva (to mention but a few) where they could still bid cheaply for keywords with which to direct traffic to their MFAs and Adsense Template sites!

Inevitably, Google has finally reached the point of zero tolerance! Where beforehand they’d been treating Adsense profiteers with something akin to kids gloves, now they’ve adopted the big stick approach and ripped off those glove! As of June 1, 2007 Google has indefinitely suspended (interpret as forever) all Adsense Publisher accounts that it deemed guilty of the crime of conduct unbecoming; in other words those accounts that largely catered to MFAs and Adsense Template sites!

ARBITRAGER’S DESPERATE LAST GAMBLE

The Adsense arbitragers know that the game is up, but that does not mean they are going out meekly or quietly! Remember how I remarked at the beginning that isn’t it strange how any time Google shuts down or modifies a system-under-abuse, those responsible for that abuse suddenly litter the internet with a proliferation of outrageous money-generating offers based on that shut down system. Case-in-point is the get-google-adwords-free call to arms! Me thinks the sole reason for this call-to-arms is that the webmaster concerned has been shut out of his/her lucrative money-generating source and is looking for a final payday from the unwary.

My advice to you if you are tempted to fall for this evident scam is: Think carefully! Do you really think that Google got where they are (Number 1 in the search engine business) by allowing marketers to profiteer from a supposed loophole to the tune of 87 million dollars?

You can also bet that a lot of Adsense arbitrage marketers are going to migrate to other pay-per-click systems, such as Yahoo Publisher Network and other lesser pay-per-click alternatives! But it is my belief that they will find little fortune there too, because common sense tends to dictate that those businesses won’t encourage such activity either. I mean let’s get real, if marketers on those other networks feel that their dollars are being wasted as they were on the Adsense network, they’ll jump ship once again!

Google has made a bold and long overdue overhaul to its pay-per-click system, and with any luck advertisers will start migrating back to Adsense which should benefit those Adsense publishers with genuine content sites as well as Google.

Is Adsense Arbitrage Worth The Risk

Everyone wants a quick easy way to make AdSense cash; a way that doesnt require too much research, too much web building and too much content. With everything about the internet been so quick and easy, why shouldnt AdSense be the same?

But it soon dawns on every beginner that the scheme isnt as free and easy as it seems. To make money from AdSense requires a lot of work. Forget the cheap looking sites claiming they have the key or secret to AdSense success. The fact is that there is no secret; the key to success is good old fashion planning, organization and hard-work.

However, some AdSense publishers have developed quick (though not easy) ways to make money using AdSense to the annoyance of Google. These methods are often looked down upon by Google and they have taken some very tough measures to cut down on the illegitimate use of their scheme.

But due to the nature and size of the scheme there are always going to be publishers that will attempt to find easy ways to make AdSense cash. One such way is AdSense arbitrage.

For a time it seemed that AdSense arbitrage was the simple way to earn easy AdSense money. And for years the method worked to the chagrin of Google. But recently, however, the situation has changed.

But first what is AdSense arbitrage and how does it work? AdSense arbitrage can be quite a complex process, but in its simplest form it works by paying for cheap PPC advertising schemes like Googles AdWords, Yahoos Search Marketing or MSNs AdCenter and directing the visitors that click on the ads to a webpage containing high paying AdSense ads. AdSense practitioners can either bid on specific keywords with large bid gaps or they can choose to bid on low cost keywords and direct visitors to landing pages with more general and competitive keywords.

So in principle you could use Google Adwords in conjunction with AdSense to rack in the money… as long as you choose your keywords wisely. You could pay as low as $0.50 for a keyword in Adwords and direct the traffic to a web page with AdSense ads that pay $1.00. It seems simple on the face of it but theres more to AdSense arbitrage that meets the eye.

Firstly, you dont get the whole cut from a click as an AdSense publisher. You only get 60% of the Adwords price. So you would get $0.30 profit using the example above… ideally.

However, Google has incorporated smart pricing into the AdSense scheme and this has completely dissolved the crucial 60% cut once enjoyed by serious AdSense arbitrage practitioners. Basically smart-pricing has been introduced by Google to scuttle anyone practicing AdSense arbitrage. It basically re-adjusts the cost of particular AdSense click depending on if it is likely to result on actionable business such as a sale, phone call, registration etc…

Unfortunately, anyone can be targeted by Google for smart-pricing. No AdSense account is safe and publishers that use AdSense arbitrage should beware.

So is AdSense arbitrage a serious viable way to use Adsense? The method in essence is cheating. Anyone caught using the method may be banned from the scheme. But there are possibly hundreds of thousands of websites that innocently contain AdSense ads, that may also have a PPC advertising campaign promoting them. The many publishers owning these sites are practising a subtle form of AdSense arbitrage without even realizing it.

Theres no way Google can ban a large section of its client base. What can they do? How could they be sure if a particular publisher is practicing AdSense arbitrage?

There is no easy way to know for sure.

But for anyone suspected of using arbitrage they could be hit with smart-pricing. This in essence dissolves any profit margins they would have had using the method, eliminating any incentive to use it.

AdSense arbitrage is now very difficult to practice effectively. Google, after discovering a problem with their AdSense scheme have developed a clever solution to the issue. It is by no means a complete solution, but it is powerful enough to drastically decrease the number of publishers that use the system.
If you want to use Adsense, the slow patient, but ultimately rewarding method of building quality, information rich sites to display your ads is the best.