What is Search Arbitrage and How Does It Work?
At its core, search arbitrage is a media buying strategy where marketers purchase low-cost traffic and redirect it to search results or monetised landing pages, earning more than they spend.
Here’s the basic flow:
- Buy cheap traffic (from Facebook Ads, TikTok Ads, Taboola, or Outbrain)
- Send it to an intermediate landing page with a search feed (from System1, Tonic, etc.)
- Users interact with feed results and click on sponsored listings
- You earn a margin between what you paid and what you earned
When set up correctly, it becomes a loop of passive income. However, success hinges on optimising each part of the funnel.
Why Marketers Use Search Feed Arbitrage
Most affiliate marketers or search arbitrage media buyers use this model for one main reason: scalability. Once your funnel is optimised, you can increase ad spend and see proportional returns if your pages convert.
Using search feed arbitrage, marketers can:
- Generate passive revenue via paid clicks
- Leverage high-demand search terms on Google and Bing
- Monetise thin content sites with minimal updates
But what separates profitable campaigns from the rest is content engagement. That’s where tools like VidAU help turn a generic landing page into a conversion machine with branded explainer clips or avatar intros.
Search Arbitrage Feed Providers – Who to Work With
You don’t get paid directly by Google or Bing. Instead, you work with search arbitrage feed providers who resell those feeds. These include:
- System1
- Tonic
- Ads.com
- RevContent (via feed partnerships)
These companies provide the feed and pay you based on user engagement with the feed links. But getting approved isn’t easy; they often require a proven track record or professional setup.
Having rich media, clean UX, and strong time-on-site metrics (helped by tools like VidAU) can increase your chances of approval.
Optimising Your Landing Pages with AI Video – A Secret Edge
One of the most challenging aspects of arbitrage advertising is maintaining low bounce rates. If users land and exit quickly, feed providers may reduce or stop your payout or even stop working with you altogether.
By adding a quick explainer video or branded avatar intro via VidAU, you:
- Increase dwell time on your page
- Improve feed click-through rates
- Build more trust with the user
It is beneficial for verticals like:
- Finance (credit card comparison videos)
- Education (explaining student loans)
- Health (top 5 supplements reviews)
- Insurance (how-to guides for coverage options)
Common Challenges with Search Arbitrage in 2025
Search arbitrage isn’t easy money. Profit margins are shrinking, and feed providers have stricter policies.
Top challenges include:
- Rising cost of traffic
- Thin margins (10–25% typical)
- Constant keyword testing
- Feed provider gatekeeping
Many search arbitrage media buyers spend weeks testing new verticals, keywords, and creatives. Every time a campaign fades, you start over with a new niche.
Adding short video content from VidAU can help maximise each visit before your campaign burns out.
Best Niches for Arbitrage Advertising
If you’re new to search arbitrage advertising, start with proven verticals. These niches attract high ad spend and have strong monetisation:
- DIY Home Renovation
- Travel and Solo Adventures
- Celebrity News
- Fitness and Weight Loss
- Student Loans
- Product Reviews
- Auto or Health Insurance
Each of these can benefit from quick video explainers or “Top 5” formats using VidAU to boost user engagement.
Conclusion
Search arbitrage isn’t for everyone. It requires upfront investment, strategic media buying, and constant testing. But for those who break in, it can be a profitable (and scalable) model.
The most significant opportunity in 2025 lies in enhancing user experience, and AI video tools like VidAU help make your arbitrage sites more engaging, credible, and high-performing.
Frequently Asked Questions
1. What is search arbitrage?
Search arbitrage is a strategy where marketers purchase low-cost traffic and direct it to higher-paying search feed pages, profiting from the resulting difference.
2. Who are the top search feed arbitrage providers?
The top providers include System1, Tonic, and Ads.com. Approval can be competitive and requires a solid campaign setup.
3. Is search arbitrage legal?
Yes, but you must follow platform policies and avoid deceptive practices. Feed providers and ad networks have strict compliance rules.
4. What kind of landing pages work best?
Clean, mobile-optimised pages with engaging content, especially short videos, convert better and boost earnings.
5. How can VidAU help my search arbitrage funnel?
VidAU enables you to create videos from product URLs or scripts, helping to keep users engaged and improve time-on-site and feed click rates.
