Definition of Arbitrage
Arbitrage refers to the practice of taking advantage of price differences between two or more markets to generate profits. In the context of marketing and advertising, arbitrage involves buying traffic or ad space at a low price and selling it at a higher price.
- Exploiting price discrepancies
- Buying low, selling high
How Arbitrage Works
Arbitrageurs use various tools and strategies to identify undervalued traffic or ad space and resell it for a profit. This can involve:
- Media buying
- Traffic arbitrage
- Ad space arbitrage