Google doesn’t like your business model… if your business model is AdWords/AdSense arbitrage. Recently, Google began cracking down on sites that advertise on the Google AdWords program to attract visitors who come to a website containing Google AdSense ads. The idea is that the site owner makes money from the difference between the cost of the AdWords ads and the money earned by visitors clicking on the AdSense ads on the site. This is known as AdSense arbitrage or AdWords arbitrage.
Google wants you have a business model other than pure arbitrage, and then if you do a bit of AdWords/AdSense dancing, it’s okay, according to the AdSense blog.
the site’s owners decided to use Google AdWords to drive qualified traffic to their site. After setting up their first campaigns, they implemented conversion tracking to evaluate their overall return on investment. More recently, the company added AdSense to their site. As co-owner Jean-Baptiste Sers told us, “Our business model is not based on advertising revenue — but in order to increase our AdWords spend, we wanted to use AdSense.”
Check that last part out: Our business model is not based on advertising revenue — but in order to increase our AdWords spend, we wanted to use AdSense. Is that not arbitrage? According to their stated motivations, it isn’t: they wanted more money to spend on AdWords. But arbitrage isn’t defined by your motivation, it’s defined by how you’ve set up the mechanics of a system that doesn’t spend more than it makes. To put it another way, who cares what they want the extra money for? Maybe they want to buy new cars.
They have a business model that exists independently of their advertising revenue, and that is Google’s main point regardless of how Mr Sers spins his arbitrage.
If all you did was buy ads and display ads, and you had no other business model, then you would be a candidate for getting your earnings through Google programs shut off.
Technorati Tags: google, adsense, adwords, arbitrage
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