BigDave - 6:09 pm on Jan 2, 2008 (gmt 0)

But on the other hand, in quite a number of cases geotargeting will make euro advertisers compete with other euro advertisers, and US advertisers with US advertisers. So no exchange rate advantages there.

But wouldn't that give you, as a publisher, an advantage if your site is meant to appeal to Europeans instead of Americans?

If German publishers are competing against each other and bid up the geotargeted CPC, and you get that click, you are earning more dollars than I would get from similar clicks geotargeted at Americans. So it might come out as a wash for you in the end, higher EPC in dollars adjusted down by the exchange rate.

I have no idea if this is actually happening, but it would be interesting if some sites that are aimed at non-american markets would look at their EPC over the same time period and compared them to the exchange rate.