What is Digital Arbitrage?
Digital marketing today extends to every corner of the globe and businesses are using it in new and innovative ways to change how customers are served.
Digital arbitrage is a time tested business principle used in many diverse industries for taking advantage of differences in prices. In this case, it’s about taking advantage of the difference in the price of ads. Native advertising arbitragers are acquiring insanely cheap traffic, and monetizing that traffic with ads that pay out more than what they’re spending to get that traffic.
Digital Arbitrage has become an ultra competitive marketplace. It’s betting that a publisher can sniff out online leads and generate sales for businesses at a cheaper cost than the advertisers are willing to pay for those leads. In other words, the spread – or difference – between the sale price per lead and the actual cost of capturing that lead could generate hefty profits for the publisher.