Would you believe a rumour that tells you that Google is going to ban the publishers that practice Adsense Arbitrage? Well, then I suppose you don't agree with me that Google would commit suicide. After all, the Adword/Adsense system that Google uses is arbitrage.
What Google wants to get rid of are the sites that convert poor for the advertisers. Imagen yourself paying dollars per click to get visitors to your site and you see your ad on one of those crappy "Made For Adsense" websites. Chances are that you want to take your ads of those sites right away. There's no quality content on those sites that gives the searcher the information he or she is looking for.
Google is going after publishers that return bad ROI for the advertiser. Google has never said that they are going after Adsense Arbitrage publishers.
Suppose you use an Adwords campaign to send traffic to your website With Adsense ads. If that website has quality content on it and is relevant to what the searcher has typed in the search bar, then you are doing exactly what Google wants you to do. Give relevant quality information to the searcher. You are NOT violating Google's TOS.
The Quality Score of your Adwords campaign will improve and as a result you will pay less CPC (Cost per Click) and your ad will be displayed higher in the Sponsored Links.
What would be the result if you optimize your website to a quality website? Besides the traffic you get from your advertising campaign, Google will love to index a website like that. They need quality information for the searchers.
Affiliate marketers using PPC advertising are practicing arbitrage, because they often invest few cents to earn dollar commissions. Of course, in this case the amount of CPC that they pay depends on what niche they advertise in. And very often the searcher ends up on a landing page with a product review. If that review is relevant to what the searcher searches for, the advertiser and affiliate is doing exactly what Google wants. Again, this will increase the quality score of the Adwords campaign.
Conclusion
Adsense Arbitrage is not a "bad" thing that will get you banned from Google Adsense. On the other hand, building crappy websites, such as the MFA (Made For Adsense sites), and sending traffic from a Google Adwords account to those sites is not recommended anymore. A logical thought is that Google will never index those sites and will let the advertiser pay high CPC in case of arbitrage. Will this cost you your Adsense account? That's up to Google to decide....
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