Advertisements collected through Google AdWords system are shown on AdSense websites. When an AdSense publisher starts to buy traffic through Google AdWords for his AdSense site, he becomes an AdSense arbitrager. AdSense arbitrage is one of the AdSense business strategies that publishers could implement to make AdSense profit.

Is AdSense arbitrage a fraud to Google? No, Google allows AdSense arbitrage. As a matter of fact, the more AdSense arbitrage, the more Google could make from AdWords.

The success of AdSense arbitrage depends on the amount spend on traffic and the profits AdSense arbitrager gets from AdSense so long the cost of buying traffic does not exceed the earnings from the AdSense.

AdSense arbitragers need to make good profit from AdSense to cover the cost. One way to boost AdSense profit is by creating contents with high paying keywords. These contents normally get ads that pay higher. Therefore, high paying keywords are necessary for a successful AdSense arbitrage.

Keyword research tools such as Digitalpoint Keyword Suggestion Tool are used to locate the most searched keywords. With these keywords, AdSense arbitragers can obtain a list of high paying keywords using Google AdWords. By maximizing bid for each keyword, arbitragers can obtain the estimated highest cost per click (CPC) for each keyword.

However, the estimated highest CPC of each keyword obtained from AdWords does not reflect the real competition for that keyword. The highest bid price could be raised by one advertiser whereas majority advertisers are bidding for the same keyword at lower price. Besides, the estimated highest CPC could not reflect the true CPC of each keyword at regional level. Cost per click in different regions can be different as the competition for the same keyword in each region varies. Nonetheless, based on this list of highest CPC, AdSense arbitragers are able to discover the potential market for arbitrage.

AdSense arbitragers will then build a website targeting a set of chosen high paying keywords. Proper use of meta tags, title text and good quality content would increase the relevancy of ads and hence help the website to get high paying ads.

Low paying keywords from the most searched keywords list are used in the AdWords campaign drive traffic to the new website. AdSense arbitragers can include as many low paying keywords as possible in AdWords campaign and start each keyword with a minimum bid.

Run the AdWords campaign for a week or two to get the average earning per click. Increase the bid price or broaden the low paying keywords list if it can increase your AdSense arbitrage profits. Many other form of paid traffic can be used for AdSense arbitrage. Many smaller pay per click search engines could bring decent traffic collectively for less money.

AdSense arbitrage depends on high click through rate (CTR). Well position and well blended-in ads will induce high click through rate. Quality contents that provide values will attract quality audiences. These targeted audiences are more likely to turn into customers for advertisers. The higher quality audience your website sends to advertiser's site, the less likely it would be smart priced.

The success of arbitrage can be shattered by unpredictable click through rate and fluctuation of keyword value. The cost spent on AdWords could easily exceed the profit from AdSense. The arbitrage process has to be monitored closely and constantly.

To capitalize the efforts and money spent on paid traffic, other form of monetized techniques such as affiliate marketing or name capturing form should be used to target those non converted AdSense audiences. With these mechanisms in place, efforts and money spent on paid traffic would not be wasted.