Parked.com Update on Arbitrage

**Donny Simonton** · 02-12-2008, 08:09 PM

StuntPope - Links from expired traffic is fine.

Donny

**flybuzz** · 02-12-2008, 08:25 PM

agree with the article, bad move for yahoo.

**vbigdeli** · 02-12-2008, 08:25 PM

Originally Posted by miraculix123

.. and arbitrage and arbitrage is not the same.
And traffic quality score is the number of conversion from the advertiser, isn`t it?

Yes.
Mine is always 9 or 10

**whitebark** · 02-12-2008, 09:13 PM

This will have a nice side benefit for those with good domains. Domains with high type-in and/or potential for the search engines will be more desirable than before. It will be much harder to puff up poor domain names.

**ilovedomains** · 02-12-2008, 09:40 PM

Is the ask.com feed being dropped at Parked as well?

http://domainnamewire.com/2008/02/11...name-industry/
"Ask.com’s Google feed will no longer be syndicated to parking companies as of March 1"

**Focus** · 02-13-2008, 12:42 AM

I think the ppc market and business is evolving to provide higher quality traffic to advertisers, increase overall bid amounts (and conversions), and thus reward those with quality traffic sources. I respect Yahoo, and I esp. trust the Parked.com management to make sure we all keep making money..because without each other we make no money.

**tonyfloyd** · 02-13-2008, 12:43 AM

u mean to say without arb we make no money....

**SDX** · 02-13-2008, 12:56 AM

The MAJORITY of my Revenue was never from Arbitrage!

**tonyfloyd** · 02-13-2008, 12:58 AM

hhhmmm...u mean Minority?...

**SDX** · 02-13-2008, 01:02 AM

Originally Posted by tonyfloyd

hhhmmm...u mean Minority?...

NO

**MacyT.** · 02-13-2008, 01:16 AM

I came late into this arbritage game, but how were you all making so much (or some of you), when bid prices were going up as well? Were you spending a lot more...and enough people were actually clicking?

**Acro** · 02-13-2008, 01:18 AM

Originally Posted by Focus

I think the ppc market and business is evolving to provide higher quality traffic to advertisers, increase overall bid amounts (and conversions), and thus reward those with quality traffic sources. I respect Yahoo, and I esp. trust the Parked.com management to make sure we all keep making money..because without each other we make no money.

A very carefully crafted statement

**hydroboi** · 02-13-2008, 01:27 AM

Originally Posted by Focus

I think the ppc market and business is evolving to provide higher quality traffic to advertisers, increase overall bid amounts (and conversions), and thus reward those with quality traffic sources. I respect Yahoo, and I esp. trust the Parked.com management to make sure we all keep making money..because without each other we make no money.

Focus hit it on the head, conversions are the key, how can advertisers afford to use Yahoo's content network when you have people sending crap traffic at it and bidding up keywords and killing all real profit for companies advertising real products.

Just my 2cents

**madbigt** · 02-13-2008, 02:39 AM

Here is my questions, When click value goes up because of the change will the end user (us) see the click value go up or will the parked companies take their time in this matter? Quality domains wont be affected but we should hopefully see an increase????

Thanks for the article Petros!

**CyrusL** · 02-13-2008, 02:49 AM

Originally Posted by madbigt

Here is my questions, When click value goes up because of the change will the end user (us) see the click value go up or will the parked companies take their time in this matter? Quality domains wont be affected but we should hopefully see an increase????

Thanks for the article Petros!

The efficiency of the market will dictate your revenue-share percentage. If you're not happy with the cut you're getting, switch to someone else that pays more. It will force the payouts to go up.

**CaleyD** · 02-13-2008, 03:55 AM

You hear the advertisers moaning about the practice of arbitrage, but it only works when you can buy cheap at one place and sell for a profit elsewhere. In other words, if they did their homework and spent their advertising budgets with a bit more savvy then they would not fall foul of the practice because they would be spending where they were getting the most bang for the buck instead of being lazy and expecting everyone else to do the work for them.

Banning arbitrage is, IMO, nothing more than restricting free trade. Since when did it become "wrong" to buy something cheap at one place and sell it for a profit elsewhere?

I look after some online advertising accounts for people, and when they see headlines in the press about things such as arbitrage and come to me with complaints that they feel they are being ripped off, I simply point out how much I have reduced their advertising costs or increased what they are getting for the money they spend. And I also point out that this simple practice is vastly reducing the risk of things such as arbitrage impacting on them. By simply shopping around for the best value for money supplier, as companies do with just about every aspect of their business, they save money and stop sending it into the black pit of "arbitrage".

I won't pay $1 on Yahoo for something if I can get it on Google for $0.50.....and if advertisers are doing that (and they obviously are), then that is their own look out. It's their inability/unwillingness to shop around and do a bit of leg work that creates the arbitrage market and they are the ones best placed to put an end to it by simply not paying over the odds on one network when they can get it cheaper elsewhere.

Any advertiser coming on and crying about arbitrage....I point at you and laugh and I tell you to get your own affairs in order before you start pointing the finger at others. It is YOUR own stupidity that is creating the market, and as with everything in life, if their is a market there then someone will take advantage of it.....and rightly so, because it is everyones right to make an honest living, even if that is from the stupidity of others.

**CyrusL** · 02-13-2008, 04:14 AM

Originally Posted by CaleyD

You hear the advertisers moaning about the practice of arbitrage, but it only works when you can buy cheap at one place and sell for a profit elsewhere. In other words, if they did their homework and spent their advertising budgets with a bit more savvy then they would not fall foul of the practice because they would be spending where they were getting the most bang for the buck instead of being lazy and expecting everyone else to do the work for them.

Banning arbitrage is, IMO, nothing more than restricting free trade. Since when did it become "wrong" to buy something cheap at one place and sell it for a profit elsewhere?

I look after some online advertising accounts for people, and when they see headlines in the press about things such as arbitrage and come to me with complaints that they feel they are being ripped off, I simply point out how much I have reduced their advertising costs or increased what they are getting for the money they spend. And I also point out that this simple practice is vastly reducing the risk of things such as arbitrage impacting on them. By simply shopping around for the best value for money supplier, as companies do with just about every aspect of their business, they save money and stop sending it into the black pit of "arbitrage".

I won't pay $1 on Yahoo for something if I can get it on Google for $0.50.....and if advertisers are doing that (and they obviously are), then that is their own look out. It's their inability/unwillingness to shop around and do a bit of leg work that creates the arbitrage market and they are the ones best placed to put an end to it by simply not paying over the odds on one network when they can get it cheaper elsewhere.

Any advertiser coming on and crying about arbitrage....I point at you and laugh and I tell you to get your own affairs in order before you start pointing the finger at others. It is YOUR own stupidity that is creating the market, and as with everything in life, if their is a market there then someone will take advantage of it.....and rightly so, because it is everyones right to make an honest living, even if that is from the stupidity of others.

This post serves only to publicly promote your complete ignorance to the world of online advertising. Not all clicks are created equal and Yahoo is choosing to disallow clicks that strongly underperform traditional type-in traffic. Comparing PPC arbitrage (where all clicks are not equal) to physical commodity arbitrage (where all gold is equal) is naive to the point of stupidity. Harness all that anger you have built up, learn about the contextual ad marketplace, and figure out why the vast majority of people actually making real money in pay-per-click think this is a good move.

**Luc** · 02-13-2008, 04:26 AM

Originally Posted by CaleyD

Any advertiser coming on and crying about arbitrage....I point at you and laugh and I tell you to get your own affairs in order before you start pointing the finger at others. It is YOUR own stupidity that is creating the market, and as with everything in life, if their is a market there then someone will take advantage of it.....and rightly so, because it is everyones right to make an honest living, even if that is from the stupidity of others.

Incorrect.

What hurts the industry is not people buying cheap clicks on google and sending them to google, but people buying traffic from third party providers, which there are hundreds of now, and sending it to google/yahoo. This traffic is pure garbage (we're talking exit popup traffic, etc), and yes, google still looks the other way even today, and millions of ad dollars are lost on this every month.

This is where the real money is made in arbitrage.

As far as advertisers being stupid, sure, the MAJORITY of Googles Adwords revenue comes from the millions of small sites in the adwords network, these are small business owners who generally focus on the day to day operations of the business and do not have the skills, knoweldge or cash to hire a campaign manager. They follow Google's easy to use keyword suggestion tool and TRUST that they're getting the best deal for their money.

The internet was built on TRUST, and not on one person scamming the other dry because they see a business opportunity.

You're saying that because they're running the business, and not constantly focusing on the juggling of keywords and bids, which are in many times, artificially inflated by the massive arbitrage campaings, it's ok to rob them blind.

Very unethical and damaging to the entire industry.

BTW, these guys also have figured out how to make money off the stupidity of others...

http://www.clickmonkeys.com/google_bomb.shtml

**DavidAusman** · 02-13-2008, 04:51 AM

Originally Posted by Luc

Incorrect.

What hurts the industry is not people buying cheap clicks on google and sending them to google, but people buying traffic from third party providers, which there are hundreds of now, and sending it to google/yahoo. This traffic is pure garbage (we're talking exit popup traffic, etc), and yes, google still looks the other way even today, and millions of ad dollars are lost on this every month.

This is where the real money is made in arbitrage.

http://www.clickmonkeys.com/google_bomb.shtml

I think Donny had made himself clear on other threads that he blocks search traffics from less popular search engines due to lower conversion for advertisers.

**omosquera** · 02-13-2008, 06:27 AM

Originally Posted by Luc

.... people buying traffic from third party providers, which there are hundreds of now, and sending it to google/yahoo. This traffic is pure garbage (we're talking exit popup traffic, etc), ....

Your right, there is also this Virus COPY.win32 after installing itself in your computer, replaces your search engine results with all kind of parked pages , I got this virus yesterday by downloading something from www.dailykeys.com ...

_

Yahoo's move may be good for Adsense advertisers, Im not going to tell you why but if you were playing the arb. game you know what Im talking bout. I went from $1 clicks to 0,01 clicks in adsense and I blame arbitrage, but now things may change for good...