PPC Arbitrage Might Be Dead in MSN Adcenter and Yahoo Now
So as most of my readers know, I have two models of Internet income that have been feeding the family, the dogs, and keeping the bills paid full time. One is the PPC arbitrage model, and the other one is pure natural organic traffic. Update:
This blog you are reading makes next to nothing because of the subject matter, and the fact that I rarely make a post anymore. The niche blogs are where it is at for earning of course.
So when we started working Internet income my wife and I focused on Adsense arbitrage (PPC traffic sites that have Adsense ads) and it worked really well for about 6 years. Keep in mind these were not your typical crappy MFA (Made for Adsense) sites – they all had product to buy, and tons of content that was well written and original. They had lots of Adsense ads as well, they made the lion’s share of the profit.
- We were happy
- Google was happy
- Yahoo! was happy
- Adwords advertisers were happy
- Adsense was happy
- the users were finding the merchants and business was rolling for all!
Got scary in 2010 when Yahoo! start changing some of their network traffic sources. Got ripped off a few times and complained – we got all our money back – Yahoo was great for customer service.
Back in 2005 I WOKE UP and realized that this business model was going to be doomed one day, and if I didn’t get my sh*t together the PPC gig would suddenly stop cold, and we would have ZERO income. So I started blogging – THANK GOD ALMIGHTY!!!
The natural traffic slowly started to climb and slowly more and more of our profit was coming from the organic search model. Had to learn how write extensive posts. Had to learn what the search engines like the “most in a post”. Eventually it started to pay off. Two years after shifting gears and going “natural” about 1/3 of our profit came from that model. Better, but not enough to pay the bills by any means.
Kept at it and early 2010 when Yahoo started messing with their traffic sources and we got a little beat up with the PPC model, our natural traffic was making 50% of our total profit. I was freaking out at that time. 2010 has been our scariest year yet for business income. Spent allot of time swearing at Yahoo and MSN’s plans for the “transition”. Got over it though – it’s their jalopy and if they want to wreck it that is their business.
Then transition day came on Monday October 25th – the Yahoo! Panama PPC System went down and all traffic was now controlled by Adcenter – whew!!! We were still going and getting some good traffic for the arbitrage model. Making profit solid…………..for three days – then it died a stone cold dead Friday morning. So did my wife’s accounts. That was it! No more PPC model at all. We were naked in the wind at the mercy of the search engines and the visitors they brought us.
It was really scary seeing the low numbers coming in, and really scary seeing that Adcenter was not giving us ANY traffic at all. My wife tweaked our Adcenter accounts for days without any luck. The natural traffic was making enough money (and still is) to pay the bills, the mortgage, and all the rest, but we’re not “swimming in cash” anymore.
The Adcenter system costs more (CPC) to get traffic even when it does work, and you can’t get traffic or placement in the USA if you live in a different country. The Adcenter system is incredibly flawed. Campaigns and ad reporting is broken. No alerts on page quality. No alerts on inactive keywords or ads. No alerts period. Traffic estimates a joke. Not intuitive enough to give Adwords even a titter of concern.
The keyword system is ridiculous. Have to enter in mis-spellings, plurals, etc. When your ads are displayed they don’t have uppercase first letters in the title. Bing’s search results only have up 7 advertisers per page which is incredibly stupid. You can tell they are scrambling to make something worthy here and they are failing so far to “make it so”.
If they want to compete with Google’s Adwords they have light years to go. They have to admit they are number 2 to Adwords and act accordingly;
Allow “lesser” web site placement and take their money. We were spending over $500 a day in the Yahoo! Panama system, and now ZERO!. That is $15,000 a month they are not getting. If they don’t have enough “so-called quality” advertisers in their Sponsored Results lists to fill the page, then allow the so-called “lower quality” sites to populate the space below. They are leaving millions of dollars on the table just because they have an ideology bent on being “as good as Google”.
And it’s also pathetic that you can’t use the Adcenter system using a Mac or another browser besides certain Windows browsers. This is really hard to believe for a company this size. My head is shaking as I write this. So all those advertisers who are strictly Mac users had to buy a Windows machine or configure their Mac to run Windows. Then they have to do all the work to transition to Adcenter, and then…………………..NO TRAFFIC!
My wife handles PPC for clients as well, and all of them are going to Adwords only, because it’s too much to transition all the Yahoo! account to Adcenter. Never thought about that, did you MSN!!!
I have a friend who manages PPC and SEO for over 200 businesses and he did the same thing. ALL CLIENTS stopped using MSN-YAHOO and put their extra advertising budgets into Google Adwords. He estimates that he has stopped paying Yahoo! and Adcenter over $500,000 a month! That is just one company!!!!!
Did they really have a good look at what their customers were doing, and why. Didn’t they understand that the Yahoo! Panama customers were there because they couldn’t afford Adwords, and were going to be gone forever if their CPC climbed up even close to Adwords? Did they not know that a “clunky” transition was going to make a good percentage of the professional PPC companies leave all together because they don’t have the resources to transition ALL their clients to Adcenter. Did they not know that a safe place to be in their market place was the “Adwords Alternative” – the PPC option that allowed smaller budget, smaller companies to get some good traffic. Didn’t they know that the Yahoo! Panama system worked better for advertisers – better for everyone?
If I was at the top of the food chain there I would fire every last one of the implementation staff at the top down. I would demand that the whole system go Panama, and I would start head hunting for superior coders and engineers. Quite a mess MSN. Quite a mess.
Don’t Forget The Vista!!!
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November 6th, 2010 at 6:43 am
I disagree with much of this posting. When your goal is to gain a return on behalf of my clients, you often find Yahoo’s “Search Partner Network” plagued with unmonitored spam. Yahoo finally listened to agencies and gave advertisers the ability to block partner network 100%, or to reduce bids to account for lower quality.
AdCenter actually has standards, while Yahoo let anybody in the door. With that said, adCenter’s standards are too restrictive and they make it near impossible to grow volume. Since they started working with Yahoo, they’ve loosened up on restrictions for # of ad/page and hopefully they will one day fix their geotargeting.
November 15th, 2010 at 6:46 pm
Microsoft has really screwed the pooch here. I don’t know what they are doing, and neither do the people who work for them. It is a huge mess. They are destroying a lot of businesses and livelihoods without any explanation or reason. It is unconscionable.
November 17th, 2010 at 1:58 pm
Yep – thank god for the natural organic search traffic.
So Adcenter wants to have a conference call with our company – so that should be interesting. If they mention ad quality, landing page quality or relevance just ONCE that is a false conclusion – they have to explain to me why my competition is running multiple crap MFA sites that look like hell and do not abide by their “quality guidelines”.
I’ll update this after the conference call OK.
Terry
November 17th, 2010 at 3:39 pm
I am having a similar problem today with these guys, migrated from Yahoo! and turned off for supposed lp quality yet as you say it stinks of double standards with ASK, info.com etc seemingly greenlighted to push their spam. I guess pay them enough money and they don’t care.
November 22nd, 2010 at 9:28 pm
[...] course MSN Adcenter is still dicking around with one of our sites making their “judgement” on whether it will be accepted into their list of Advertisors. [...]
December 22nd, 2010 at 9:41 am
MSN needs to get their stuff together. Traffic quality is good (err great), its just the reporting is bad.
…and you can login into Adcenter on a Mac. It says how Safari is unsupported, but I just click OK and log right in anyways
Unless you are talking about the desktop tool, in which case you need to be running Windows yes