What Is Search Arbitrage
& How Does It Make Money?

What Is Search Arbitrage?

Search arbitrage became a hot topic around 2019. It is an online marketing strategy that involves buying traffic from one source at a lower cost and redirecting it to another destination where it can be monetized at a higher rate.

In the case of search marketing, this means buying traffic from a cheaper source and sending it to a search results page — where ad clicks generate revenue at a higher rate than the original traffic cost.

An ad click on a cheaper source might cost $0.25, but when the user lands on Google and clicks an ad there, that click could generate $0.75 for the advertiser — meaning the marketer profits $0.50 per click. At scale, this is significant income.

The Four Forms of Search Arbitrage

1. Search-to-Search (S2S)

An ad is placed on a search engine that charges lower rates for ad clicks — say, 'Lawyers in Los Angeles.' The ad click leads to Google, where the same query's ads could be of significantly higher value. The marketer profits from the difference.

2. Display-to-Search (D2S)

The strategy of buying traffic on display ads from networks or DSPs like Google, then sending the user to a search page with a pre-set query loaded up. The hope is that the user will click on the search ad displayed, earning the marketer more than the cost of the display click.

3. Native-to-Search (N2S)

The strategy of buying traffic on native ads from networks like Taboola, which display native-looking ads on websites, and sending that user to a search page with search ads. Clicks on those ads generate revenue.

4. Social-to-Search (S2S)

Similar to N2S: placing ads or organic links in social media content. The click sends the user to a search page with search ads. Clicks on the ads generate revenue for the marketer.

Is Search Arbitrage Good for Advertisers?

For advertisers, search arbitrage increases exposure. Advertisers buying ads on networks like Google will see their ads appear not just on Google.com but on partner publisher networks — reaching audiences outside of direct search.

Another benefit: advertisers with expensive keywords see more traffic to their ads thanks to arbitrage marketers driving volume. The main concern is traffic quality — lower-quality marketing strategies result in lower yield and are tracked by the search engine's quality scoring systems.

How Much Money Does Search Arbitrage Make?

Search arbitrage typically runs a profit margin of 7–15%. If you are spending $10,000 a month in media buying, expect to see a profit ranging from $700 to $1,500.

That may not sound like a lot, but for operators in countries with lower costs of living, this is significant income. And for companies seriously invested in search arbitrage, we have seen operators spending over $20,000 per day — that is $600,000 per month in spend, with profits of approximately $90,000.

How to Get Started in Search Arbitrage

To run search arbitrage, you need:

1. A media buying account on Taboola, Outbrain, Facebook, TikTok, or another native or social platform
2. A search feed from a provider like Big Engage Marketing (Bing and Yahoo feeds available)
3. A landing page or search results page that displays the search ads
4. A tracking setup to measure click costs vs. search revenue

Big Engage Marketing provides search feeds specifically optimized for search arbitrage, with dedicated support to help you optimize your campaigns.