How to Choose a Vertical in Traffic Arbitrage?

Traffic arbitrage is more than just redirecting visitors from websites, apps, messengers, and other resources to your landing page. It all starts with choosing a niche and finding the right approaches to reach the target audience. In this article, you will learn what a vertical is, how to choose it, which verticals there are, and why every arbitrageur needs quality proxies.

What Is a Vertical?

A vertical is a group of products that have several factors in common:

Method of promotion (e.g., buying Facebook Ads or promoting through social media);
Target audience - users have similar interests, often sharing the same age or gender;
Geography - users are usually in the same region, however, there may be exceptions, as we will discuss later.

For example, we want to promote health products. It would seem that our niche is “Health”. But if you think about it that way, almost everyone is interested in how to become healthier, so we need to get more specific.

We can narrow down our target audience to those Internet users who want to lose weight. That's already okay, but it's important to further divide the potential buyers of the offer into men and women. Again, to further increase the quality of the target audience, let's narrow it down to those who are looking for a keto diet.

You can go further, for example, selecting those who are on a vegan type of diet and leaving the potential buyers of the product related to the keto diet.

Health is a vertical, that is, a big industry with room for a huge number of offers. It connects millions and in some cases billions of users. For example, our vertical includes men who want to quit smoking or women suffering from depression.

Let's conclude: each vertical should be further segmented to leave only the target audience for a certain offer or group of offers.

What Are the Different Verticals?

There are quite a few verticals, but arbitrageurs especially favor the following:

Merchandising is a common vertical that combines all physical goods sold online, from gardening equipment to luxury cars. Every year, despite pandemics, sanctions, and other kinds of restrictions and challenges, online sales are growing. Moreover, the further digitalization of society and the increase in online sales are predicted to progress.
Nutra is products that relate to the previously described vertical called “Health”. This includes all sorts of creams, gels, pastes, dietary supplements, accessories, and a large number of other products. One of the features of nutra is its seasonal nature. For example, in spring a very popular request is weight loss, since the world begins to prepare for the summer season, and in the summer you need to look good.
Dating is about getting to know each other. The world is increasingly moving away from dating on the street, in the library, and nightclubs, so online dating has long been a familiar tool for finding friends and partners for life together. In fact, Facebook itself can be considered a dating website, however, users are usually looking for narrowly focused sites, the target audience of which is initially focused on finding someone to get to know.
Gambling and betting are vertical with good payoffs for affiliates that involve the promotion of slot machines, casinos, poker, and gambling. In many countries this is prohibited, moreover, popular advertising networks prohibit the purchase of traffic to promote such resources. But arbitrageurs find both offers and traffic sources.
Cryptocurrencies are a dynamic and rapidly developing vertical. If earlier crypto was considered something similar to gambling, nowadays it is almost a white niche, where there is a huge number of providers for every taste - from exchanges and exchangers to training courses, trading, and investing. It's a fairly complex but highly profitable vertical that can be promoted to an audience from almost any country.
SP offers are subscriptions. The point is that the user subscribes to a service, in which case their balance will be debited for a long period of time, in many cases automatically. It is not about deception or fraud, because, unlike the times when the Internet was just beginning to develop, today users subscribe to learn English, receive newsletters, and watch movies in high quality. One example of an SP offer is a subscription to an online movie theater when a user pays a small amount each month and gets licensed access to the latest movies.
Banking and non-banking finance are credit cards, mortgages, microloans, and other financial services. This niche is very profitable in developing countries where citizens are just forming financial habits.

There are also narrow verticals - software, gaming, tourism, travel, essays, job recruitment, and others.

How to Choose a Vertical?

A vertical for arbitrage should be chosen based on several parameters:

Entry threshold. If you are just starting, you should not choose a vertical with a high entry threshold, for example, you will need about 10 thousand dollars to enter gambling. At the same time, you should be prepared for high risks, that is, to lose your initial investment either partially or even completely.
Interest - you should be interested in promoting offers. For example, not everyone is comfortable working in the LGBT niche or selling sex toys. If this violates your moral convictions, it is better to do something more familiar and, as practice can show, no less profitable, for example, advertising dietary supplements or other health products.
Seasonality. Yes, you can be engaged in promoting weight loss products in winter, but this niche flourishes in the spring. At this time, you can engage in the sale of diets, and promotion of various accessories and devices for fitness at home.

Why Can’t You Work Without Proxies?

So, you have chosen a vertical, and decided on a micro-niche. Now, it's time to search for profitable bundles and get to earn money. However, during the testing phase, you will definitely encounter the need to register a large number of accounts. This applies to Facebook Ads, Google Ads and other services.

Such platforms in every possible way suppress spam and also do not treat arbitrageurs very favorably, because those, in fact, take away part of their profits.

That's why you need proxies that will help you use one physical device to manage a large number of accounts and services.

Proxies from KeyProxy are the best option on the market. High-quality mobile proxies with a high uptime of 99.8% and speeds up to 20 Mbps per second will allow you to surf and watch videos comfortably while ensuring maximum anonymity.

Conclusions

The right approach to making money in arbitrage is to first define your vertical and then your microniche. In this case, you will be able to focus your efforts on better understanding the needs of your target audience and offer them a quality offer. Proxies from KeyProxy will ensure the safety of all workflows!