Leverage data to increase margins on search arbitrage campaigns.
What is Search Arbitrage?
Taking advantage of differing prices for the same asset or offer. Google can sell a click for $2 but only has a limited users looking for the search term compared with the number of advertisers willing to pay $2 for the keyword.
Search Arbitrage Conversion Funnel:
Advertiser -> Taboola Campaigns -> Parked Domains -> Google / Bing / Yahoo (search feed N2S S2S T2S BHS YHS) -> Payout
Search Arbitrage US Market:
High EPCs -> High CPCs -> Highly Competitive
Search Arbitrage Other Markets (EU / SEA / LatAm / Oceania / Asia / etc):
Lower EPCs -> Low CPCs -> Less Competitive
Most of search arbitrage ad spend is located in the US market. 50% of global ad spend on Taboola is in the US with the other 50% in other territories. Advertisers will pay the most for a click given the demand and demographics in the US. In other parts of the world, click prices on Taboola don’t compare with CPC on Google.
What Are High-Payout Verticals in Search Arbitrage?
- Dental Insurance
- Dental Implants
- Divorce Lawyers
- Buy a Luxury Apartment in Dubai
- Car Insurance
- Debt Offers
Where does Native (Taboola) have low-priced high quality inventory?
Spain, Eastern Europe, South East Asia, Australia, Canada, and more
Search advertisers are going to pay substantially more for high-payout verticals. In the US, CPC prices are relatively high compared to CPC prices in other countries. By acquiring traffic and targeting other countries, CPCs are much lower and therefore search arbitrage marketers can take advantage of margin advantage and make more profit. Campaigns in France and Southeast Asia are yielding over 30%-100%+ ROI compared to campaigns in the US.
Remember 50% of global ad spend on native platforms such as Taboola are not allocated to the US market. That means 50% of traffic are being spent in all other markets.