What is traffic arbitrage and how does cloaking help you earn the most?

Traffic arbitrage - attracting users to advertisers' sites. Arbitrageurs get money when users who clicked on their link buy goods, register on the site or fill out forms. There is a global problem in arbitrage - not all categories of offerers comply with the rules of major traffic exchanges and social networks. 

Many lucrative offer categories such as gambling, adult content, nutra (bio supplements), cryptocurrencies and financial services often face restrictions on popular advertising platforms.

Arbitrageurs don't want to give up the most monetary sources of traffic. Therefore, they use cloaking. In the article we will tell about this method and how it is used to increase profits from arbitrage. You will learn about the essence of earning on arbitrage.

What is cloaking?

Cloaking in traffic arbitrage is when different visitors are shown different content:

• Moderators of advertising networks and search engine robots are shown a “white” landing page that complies with the rules of the platform.
• The target audience sees the content that is in demand.

These are not the only reasons to use cloaking. There are others:

• Cloaking helps to hide profitable bundles and creatives from CPA networks, advertisers and other arbitrageurs.
• This method allows you to attract traffic to an offer from sources that are prohibited by advertisers.
• Cloaking cuts off unwanted GEO, helping to optimize campaigns.

How does cloaking work?

Imagine two doors that open only to a certain audience. If an unwanted guest tries to enter, he falls into the next door, where he will be inevitably banned. This allows webmasters to bypass the strict restrictions of advertising networks and promote offers.

Moderation process

Before launching an ad campaign, most platforms require moderation. This process involves checking the content of the ad against the platform's rules. Some of the most stringent rules are in place on platforms such as Google Ads and major social media platforms. They include:

• A complete ban on advertising in certain categories.
• Restriction on the use of specific words and phrases.
• Requiring proof of legality and compliance.

“Gray” and “black“ methods of promotion

In the face of restrictions, some arbitrageurs resort to “gray” and “black” methods of promotion. These methods include the use of:

• Fake documents and data. For example, fake certificates or testimonials to bypass moderation.
• Mass mailings. Using spam to attract traffic.
• Traffic manipulation. Creating false clicks or actions.

Despite the high ROI (Return on Investment), such methods are banned by advertising networks due to potential harm to users.

Note that this is not common for all arbitrageurs. It is possible to make money by following all the rules of advertisers.

The use of cloaking allows arbitrageurs to bypass strict restrictions and promote profitable offers. However, it is associated with high risks, including account bans, fines and even legal consequences. It is important to remember that every advertising platform strives to protect users and reputation, so the use of cloaking is risky and requires an understanding of the possible consequences. Nevertheless, when used correctly, cloaking opens up opportunities for promotion and traffic optimization.

Using proxy servers in traffic arbitrage

In traffic arbitrage, proxies play a key role, especially when combined with cloaking. Proxies allow you to hide real IP addresses, providing anonymity and security. Here are a few ways proxies help in traffic arbitrage:

• Proxy servers allow arbitrageurs to simulate visits from different regions, which helps deliver content to the right regions.
• The use of proxies helps to avoid mass IP address bans that can be imposed by advertising networks when violations are detected.
• Proxy servers help hide real IP addresses and route traffic, making cloaking more efficient and secure.
• Proxies allow arbitrageurs to test and track the effectiveness of their campaigns from different geographic regions, ensuring accurate and adaptable strategies.

Thus, proxies are an integral part of successful traffic arbitrage strategies flexibility in a moderated and competitive environment.