I know the article posted by ibmdjango is interesting to read and makes you wonder how to get some of those dollars into your pocket, but it's not that simple and I actually urge you to forget about the tactics mentioned in the article, simply because it is not accessible to us. It is a strategic partnership between Google and a handful of companies in the world.
But if you want to get started with search arbitrage, here is some info that might help you.
In order to start with search arbitrage, you will need to have a healthy budget. Not only because you will need to spend a certain amount of money per day, but also because of the payment terms most of these providers have. It can take up to 45 days before you see your money. Keep that in mind.
So you will be required to buy media from sources that have been approved by the search engines. Depending on the strategy that you pick this means that you will be buying from FB, GDN, Taboola, or Google. So if you were planning to buy cheap clicks from a push network? Forget about it. It might work for a couple of days but then it is very likely that they will notify you that your traffic quality score is not good and tell you that it needs to improve within a couple of days or you are out. You will need to get better quality clicks, from people who actually do have some kind of interest in the product. Hence the approved sources like Google, FB and, Taboola.
The game is to get users to click on your search ads in order to pocket the difference but remember it's a 2 click process and even 3 for Google.
For example, your FB ad (1st click), your SERP (2nd click) will need to match the keyword in the FB ad. This means you can't advertise for one product and show an ad for a more expensive product. e.g. regular savings account in the ad and an investment/trading platform ad on your SERP.
What IAC is doing is buying all the long-tail keywords for pennies and drive them to a SERP with the expensive relevant keyword. But the MOST important difference here is that they buy from Bing/Yahoo where there is less competition for certain keywords. So they buy low and show expensive ads from Google. they have far more advertisers and therefore charge higher CPC rates. They make their money like this. Normal people like you and I need to do it the other way around. Buy search ads from Google and sell ads from Yahoo or Bing which are often cheaper clicks. It's a difficult strategy and therefore the majority of the arbitrage players opt for the display and native route.
With native and display you will make money some days and others you don't. Also, keep in mind that (especially the larger feed providers) they want you to generate a minimum daily revenue otherwise you are simply not worth their time. Think $300-500 per day at the beginning and the commitment to scale quickly. It is also good to know that
everything (can't stress this enough) gets measured. So if you are thinking of targeting high CPC verticals like finance you will risk getting kicked out very fast if the quality of your searches is not up to par. When the quality is good? Happy days! But they will keep a very close look at all your activity when you target specific verticals like health, finance, and education.
In terms of some companies that could possibly help you; Indian advertising giant media.net (both yahoo and google feed - but just to be clear not the highly lucrative one that IAC has

), the Israelis from codefuel (only yahoo in tier1 countries, long approval process), US-based System1 (yep the ones mentioned in the Twitter article, hard to get approved and long process), and UK based directsearchfeed.com (flexible, but more focussed on typed-in traffic) are some guys who might be able to help you.
All these companies offer solutions for typed-in traffic monetization as well (e.g.chrome extensions, website). Hope this helps, let me know if you have any other questions.