Adbrite Arbitrage

Posted on February 6, 2008 
Filed Under Making Millions

Today we are going to discuss something that is going to make the hair stand up on the necks of a select group of Internet Marketers. Why is this going to get their goat? Because I will be telling you in detail how to pull off quite easily one of their easy profit secrets. And guess what? I am not even going to try to sell you an eBook, harvest you email or anything!

So why am I going to share this information? Well lets just say that I have my own twisted reasons, one of them being that as with most of my projects, I make a social contract with my reader. I share the information with you freely and if you chose to sign up for any of the programs I discuss, then you do me the service of signing up under my supplied affiliate link. It is sort of a social-payment good Karma type thing.

So the topic for today is Adbrite and how a certain group of IM’s are leveraging it via arbitrage to create obscene profits by simply sticking up a banner and link. So how do they do it?

Before we get into the actual technique, I want to share a bit about Adbrite and how it works for both Advertiser and Publisher

Publisher Setup. (that means Webmaster)

Much like our beloved Adsense, Adbrite allows the webmaster to allocated space on their page in which to display Advertisements. These are typical rub of the mill sizes, 300×250, Big and Small Skyscrapers, Leaderboard or a space for Text Links. Adbrite then takes control of these spaces and then through a pay per impression system in which you the publisher determine how much you require to be paid for 1000 impressions they allocate advertisments that are submitted by the advertisers. Simple - no?

Advertiser Setup

This is where you as the advertiser place your advertisements in one of a few different ways

1 - Thorough the browse menu, you find the site that you wish to target. This site will have a standard per 1000 impression CPM price that they will charge for showing your ad. Or it will be a fixed price for a banner or Text Link per week. You place your order and the ad starts showing on the site subject to webmaster approval. You can also narrow this ad display via Geographic targeting which is very important as we will discuss later

2 - Or you may place general placement advertisements that are charged by the 1000 impressions. These ads can be focused via Geographic, Income, Site Category or user Skin color. Yes they let you target to Whites, Blacks, Asian or Native Hawaiian/Pacific Islander WTF?. As we get into the arbitrage tutorial later we have to be painfully aware that all of these stats (except for Geographic which is grabbed as the user comes) are at the mercy of the advertiser. Meaning that how the site is categorized can sometimes be incorrect and gamed by unscrupulously webmasters in attempts to whisp away impressions to useless traffic.

How to Arbitrage Adbrite!!

Ok right to the point. The old hands will already know about the easy cash arbitrage trick, having milked every new advertising network that comes along until the masses catch up. Well this is your chance.

Its like this

  1. Sign up for a bunch of CPA networks like Hydra, NB and RP. A list of quality networks that you can sign up with is on the Affiliate Master List. Please sign up using my affiliate link if you find this article useful.
  2. Signup for Adbrite using this link.
  3. Now you start Arbitrage

I don’t recommend using the gross targeting even for category match because one of two things will most likely happen

  1. You ads will get displayed on a bunch of junk sites that get bogus traffic that the owners have put up just to grab Adbrite impression $.
  2. You will get into a bidding war with the other 27 guys who want to display their ringtone ads on the US Teen sites and the price will go beyond profitable conversions (think adsense)

What you need to do is this.

  1. Through browsing or searching find a fairly trafficked site within the adBrite network. This should be a site that you can look at and within a minute understand more or less the demographic that is going to be using this site.
  2. Then you need to go to you trusty CPA network and find the advertisement that is going to be suited to this audience. Go with what you know.ie….

You can also do an email submit for $1-2 a lead etc… You will probably need to test a few different sites and campaigns before you find your magic formula. But once you have found it, then you have learned how to create money out of thin air. For example

Lets say that I promoting every bodies favorite Omaha Steaks on Hydra Networks. I know from my control panel that I will receive $12.50 per person that purchases a steak through clicking on my Affiliate link. This is where we start.

Then through further research and experiments I have found that approximately 1 out of 50 targeted traffic or %2 will convert and actually buy something . This is the 2nd important number

Thirdly I have discovered that out of 1000 impressions of targeted traffic (ie…US males 25+) that I will get approximately 10 clicks. or a %1 Click Through Ratio.

I then put all these numbers into my magic affiliate shaker and get the following equations.

$12.50 per conversion times %2 conversions equals long run of 25 cents Revenue per click that I receive. I now know that I am effectively going to make 25 cents for each person from a targeted website that clicks on my ad.

I set this as my bar and know that to make it worth my time and expenses, I want to be at least be doubling my money so I set my goal of spending 12 cents per click MAX to get visitors.

I then go into my Adbrite control panel and find that for my targeted site the current bid is at $1 per 1000 impressions. Thats great because I know that from every 1000 impressions I will get 10 clicks.

10 at 25 cents revenue per click meant that for every $1 I am spending to purchase 1000 impressions, I will then be making 2.50 in revenue and a total of $1.50 in profit.

That my friend is called Adbrite Arbitrage.

Now that sounds all juicy and wonderful and I am sure yo uare ready to run off and sign up under all my affiliate links, but before I let you go, there are few things that we need to review.

  1. Be very aware of Geographical targeting - Many programs are targeted only to US residents others will take internationals, however you can be damn sure that most people outside of North America and Western Europe aren’t ever going to buy anything so be aware of where your clicks and impressions are being spent. Are they being spent wisely?
  2. If it sounds that easy, why isn’t everybody doing it?

Because its not that easy. This is where Web Genome leaves all the make money gurus in the dust. In addition to telling you how to do it, I will tell you the hard part and why most people will not be able to pull off what I just described above. (or you can live in happy fantasy I am going to be rich land and just stop reading right now)

You notice for my calculations I had numbers. I already knew that for a particular ad, that a certain % of my clicks would convert. Like wise for how many CPM’s. Well this information is not free not available . I learned this information about this particular product through grueling trial and error. Only knowledge, experience and experimentation brings me to those numbers above that I can guess with reasonable certainty.

Only through my blood and sweat do I know my conversation calculations and therefore will be able to make educated decisions. I am many others will tell you the technique, but the money shot is in your niche and your numbers. This most important step only you can do alone.

The other tricky part of Adbrite Arbitrage is matching the correct site to the correct advertisement. You can go by their rate card for a starter, but you need to be able to look at a site and immediately roll through your stock of ads in your head and determine who is the target audience and what ad will convert best on them. This is part gut and part experience in order to make this happen.

So as you can see that the ‘Secret Formula’ is just the blueprint for Adbrite Arbitrage and other Internet Money Making ventures. The people who make the real $$$ put the blood, sweat and tears into obsessing every single statistic they can find regarding their campaigns in order to squeeze the last profit in their highly competitive field.

So thats it! Sign up for Adbrite and some CPA programs and leave a comment below to tell me how it goes.

Comments

Leave a Reply