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This type of behavior allows for a known ad arbitrage strategy. Bing’s PPC network, for instance, use to not have the same geo coverage as AdWords, and when the
by cpsempek 7y ago
This type of behavior allows for a known ad arbitrage strategy. Bing’s PPC network, for instance, use to not have the same geo coverage as AdWords, and when they received traffic from a geo they weren’t serving ads in they would send the search to their US ad network. The strategy then is
1. Buy AdWords ads in countries out of Bing’s coverage,
2. Send these clicks to a page serving your Bing feed’s ads for same/similar keyword search,
3. Realize Bing US CPCs on international AdWords ad buys
- csomar 7y agoBut how much is your conversion rate for the transferred users. It is not like it is 100%. If it is 5%, you'll need x20 times the CPC to break-even.
- huac 7y agono, because the Google ads would be served in low CPM countries (eg Turkey) whilst the Bing ads would be served as if the user was from the US (high CPM).
- cpsempek 7y agoOf course, CTR is apart of the profit formula and cannot ignored as you correctly note. It’s not a trivial task to find those verticals or geos where this will be a successful strategy.