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myurow I consider FB to be an exception to the rule, as they're pretty good at eliminating bots, but Outbrain definitely sends a ton of bot traffic in my previous experience. But yeah, on display the breakeven point is usually 1c or less.
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myurow The most profitable examples or arbitrage definitely are about selling something other than impressions, a signup, lead or product click can make a big difference in driving up the margin. And yeah, I don't consider arbitrage to be a dirty word, if it is done right.
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myurow In my experience, even on a network that is supposed to adjust for quality, any bid to buy traffic that is less than 10c results in a significant portion of bot traffic. (FB & Ad Words excluded, of course)