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Yahoo Publisher - Traffic Arbitrage

Posted on 12.07.2005
"Arbitrage is the practice of taking advantage of a state of imbalance between two or more markets: a combination of matching deals are struck that exploit the imbalance, the profit being the difference between the market prices" according to Wikipedia. The term is mainly applied to trading in financial instruments but 'Net traffic arbitrageur's are increasingly popping up everywhere these days and "bouncing" traffic from less-expensive first and second-tier networks to capitalize on existing bid gaps or the organic (non-paid) traffic they are receiving from the search networks.

Yahoo! added one thousand beta-testers to its Publisher program this week and early reports are indicating that there is big money to be made bouncing traffic to advertisers. Sites within the Yahoo! publisher community are typically larger and more established and should not necessarily need to send traffic away from their sites but the prevailing thought seems to be that if they are leaving without taking the specific action called for by the site anyway (say a newsletter registration for instance) you might as well monetize on the end-user's departure.

Speaking with a few of the newer beta-testers of the Yahoo! Publisher program, the revenue is rolling. Whether it's because the commission percentage is higher than that of Google or because Yahoo!'s Content Match program is more established than Google's new separate bidding for content and search which results in higher bids is anyone's guess. So what does this mean to you? Well, unless you are in the Yahoo! publisher network not much. Yahoo! will most likely limit the number of authorized publisher for quite some time to keep the sites and the revenue share at a premium.

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