Kerrisdale Capital Hit On QuinStreet A Harbinger For Ad Arbitragers In An Age Of Growing Transparency - Which50

Read commentary from Which 50's Andrew Birmingham about the Kerrisdale Capital report on QuinStreet. Kerrisdale Capital is a New York based hedge fund which focuses on short activism. 

Andrew Birmingham interviewed Shailin Dhar of Method Media Intelligence for his view on QuinStreet. “Re-brokering and arbitrage are the main pillars of affiliate and performance marketing. The main reasons are that if you can create an image palatable enough for actual advertisers, you can go out and find 100 individual parties that will provide small amounts of traffic that can be aggregated to look like an attractive level to advertisers.", Shailin said. 

In addition, he said, “advertisers will slowly but surely get wind of the fact that the party they purchase leads from usually has zero idea how they were generated. Lead scrubbing is essential; it was my first encounter with ad fraud in 2011.”