You aint kidding!
The weak dollar (relative to sterling), as you say wiped 30% off our revenue.
I hear you both. It sucks to be a net exporter to the USA when the dollar is this weak. Would that a company in the UK had the talent to establish a CPC network on a par with AdSense.
I just cant understand why we are not seeing any casale.., value...,burst... bla bla companies here in europe, just to take a example in the advertising/publisher field, be cause the dollar will maybe never get back to normal and if thats so the US just pay to little (30%) at least.
Yep i totally agree!
I always root for the American Dollar going up against my currency, its hit me in the pocket as well.
Darn Americans need to work harder and stop invading other countries, its screwing with our incomes. :)
|Would that a company in the UK had the talent to establish a CPC network on a par with AdSense. |
That's not going to help you. Your AdSense income is primarily coming from U.S. AdWords advertisers, who bid appropriate amounts for their dollar budgets and mostly dollar-spending customers.
In a hypothetical situation where U.K. advertisers target U.K. consumers, there's nowhere in the AdWords system where the exchange rate comes into play: bidding and payment are both in the local currency, right? And remember, the highest AdWords bidder wins, and gets the best AdSense positioning, no matter what the country of the advertiser, the publisher, or the user.
But still, maybe you should try to develop a web site that targets the U.K. market. If you want to target the larger U.S. market, you're stuck with exchange rate issues.
|Darn Americans need to work harder and stop invading other countries |
There are political forums for stuff like this, my friend. Take it outside, please.
Work harder? Wanna compare GDP/PPP-per-capita stats? ;)
But seriously, I don't think you can address any of the issues brought up (why web innovation tends to be in America, the reasons behind the weak dollar, etc.) without going into politics.
The solution is simple......move to the USA and enjoy!
Leave your money behind, you might want/have/like to move again in the future :)
I love the dollar being weak! And I don't see a good reason for that changing anytime soon. Every dollar made in the USA is still worth a dollar, every dollar made outside of the USA is now worth 30% more......what can't be good about that when you are in the USA?
I remember the days of $3 to the pound sterling, they might return, they might not. I certainly don't see a current lower exchange rate happening anytime soon :)
It is time (passed time) to uproot and join our yankie cousins.....they have a very nice lifestyle in comparison to Europeans! When the economic balance changes we can always move back to our homelands......win-win situation happening right now for European's and some Asians!
Board the ship....don't board....the choice is yours.....I'm already docked in the USA and won't be sailing again for a while :)
Pfff I don't want to move there I just want the benefits of America not the costs of having to live there :)
Seriously Americans always want to move to where I live, there must be a reason for it.
I flunked Econ 101, so this might be a dumb question.
If the Sterling is stronger than the Dollar do you get
more Adword clicks for you currency? Or is it vice versus?
I don't want to go into American foreign politics (I agree that there are other forums more suitable for that), but it is clear that the current discrepancy between the Dollar and Pound/Euro is not a "natural" one. For a net importer like the US, it can't be very good on a long turn either.
- Move to somewhere cheap
- Start business links with local companies to generate revenue in your local currency
- Accept it and work 30 percent harder until things go back to normal (ie. Dollar to Euro approx. 1:1)
percentages: this is a greencard issue if moving to US.
About google adsense, thats not a issue, its more all other ways to earn cash with the site, most of the options are in the states.
I would also say if you see a european company like casale payout in euro that would be a succes, also be cause of euro. The companies must also accept worldwide impressions, thats how it works for years.
I don't think it is a question of currencies - rather WHERE you generate your revenue.
For example, a tourism site that targets US and UK audiences - low dollar: fewer tourists coming from the US to Europe, thus low income. Hight pound (and low-cost airlines in Stansted) results in higher income from the UK.
I don't see why this should be a problem. Your local advertisers should have the same budgets and be increasing their bids to stay competitive. Unless you write for Americans and most of your advertisers are Americans you should not be seeing a drop in revenue because of a weak dollar. Anyone who does international business should be aware of this and try to diversify your holdings to ride out things like this.
|Percentages said...Every dollar made in the USA is still worth a dollar, every dollar made outside of the USA is now worth 30% more......what can't be good about that when you are in the USA? |
You have it backwards...every dollar in the USA is now worth 30% LESS in terms of valuation against the EURO then it was just a few years ago. As the dollar drops in value against the Euro, the prices you pay for imports from Europe goes up.
As such, during times of a declining dollar, the US dollar cost of imports goes up. When the dollar is on the rise is when Americans have it good (unless you are a exporter, but that is another story) as the cost of imports goes down.
Anyways, enough of Econ 101....
As for European companies that export to the US, I can REALLY see where your sales have probably dipped. A +30% rise in the Euro really has made many European products expensive to Americans, even more so once you factor in the shipping cost.
I think they key thing to do during these times (aka...for Europeans selling to Americans) is be willing to negotiate "on the side" to people from abroad who balk at the prices due to the currency issue. That doesn't mean putting "discount for Americans" or "discounts for people from countries with falling currencies" on your home page.
Instead, if contacted by an American or someone else who faces a declining currency relative to your own, consider stepping down in price and perhaps throwing in free shipping. I recently ordered some products from Germany and that is exactly what the merchant did when I balked at the price of his products in US dollars. I contacted him to see if he could work at a lower price, and he did...and the sale was made. The result was not only an immediate sale for this merchant, but almost certainly some repeat sales from a happy customer sometime further down the road.
Anyways, my two cents on the whole issue.
ohh that hurt EURUSD=X 5:30AM ET 1.3526 the dollar keeps faling, now to a 2 year low.
Having daily exchange rates based on the real estimated value of the economies of the countries issueing the currencies is a much more healthy situation than having a fixed exchange rate between the dollar and euro. You may remember the crisis in Argentina about six years ago after a period of fixed exchange rates between the dollar and the local currency caused the economy to stagnate.
But as an non-US AdSense publisher, I see a multiplying effect because of the economic situation in the US. Not only is my payout in EURO lower because of the falling exchange rate, but AdWords advertisers also seem to gradually bid lower on the ads. So where in the past a 1.00US$ bid equaled 85 eurocent, the same US advertiser may now bid only 0,80US$ on the same ad equalling less than 60 eurocents with the current exchange rate.
High Priced Dollar is the single biggest reason Americans were able to afford a comfortable lifestyle in the past few decades than in any other G8 country...I dont understand if this situation is temporary or if the global economic balance have changed forever.
Seems the strong dollar policy is not a washington favourite anymore!.
|High Priced Dollar is the single biggest reason Americans were able to afford a comfortable lifestyle in the past few decades... |
I disagree - I think it had more to do with the strength of our internal economy - the dollar has been steadily falling for 4+ years but the American standard of living continues to rise.
Washington is allowing to dollar to fall because it helps cut down on imports, shoring up domestic production. It is also a hedge against ultra cheap Asian products - they are still cheap, but not as much as before.
Luxury goods typically imported from Europe (cars, wine, clothes, jewelry) are taking a hit, but those consumers are in the best position to absorb the additional costs.
>>> American standard of living continues to rise.
I know a lot of Americans who don't feel that way.
Anyways, I think the weak dollar is here to stay for quite some time. Unless of course peace breaks out and the price of oil drops to 20 bucks a barrel, Walmart starts buying American made goods instead Chinese.
[edited by: Rugles at 6:51 pm (utc) on April 13, 2007]
>Anyways, I think the weak dollar is here to stay for quite some time.
It is unless the FED increases base rates to 9+% .... highly unlikely to happen IMHO without a major war act/event!
The current weak dollar is how the balance of economics returns to a stable equilibrium. Americans have to get poorer, they are on average still too rich. Keep in mind I said "On Average", that certainly doesn't have to apply to everyone in the USA....just those that don't understand how economics work!
The current weak dollar is making most American's poorer without them really seeing what is happening....it is a clever game of smoke and mirrors!
At some point the economic balance will return (may take 30+ years IMHO) and from there average Americans will have a chance to move forward.
In the meantime smart American's, or anyone living is the USA, can capitalize on this event!
Hitting both sides of my business
1: My stock is now deemed too expensive to buy by Americans
2: My adsense and affiliate side of things has effectively been cut by 25%+
I like being different :-)
I buy from the USA and sell to the UK. I LOVE the exchange rate... Let's hope it pushes way past $2 to a pound and heads towards $3 ;-)
What about a Google/Adwords/Adsense EU.?
Same with Pay Pal and others. Must be a huge market
not getting served.
Also what about a home grown "Google" in the EU?
Seems like some one is missing a winner!
|What about a Google/Adwords/Adsense EU.? |
Same with Pay Pal and others. Must be a huge market
Yes, the EU is a huge market, but it has also many different languages. This causes that huge market to be split up in many smaller markets with each their own public and advertisers. Currently Google is the only ad company doing well in serving multiple languages. Others have poor performance at best, but often just reject your application if your visitor base is non-English.
Furthermore in search, Google's percentual share in the German market is larger than Google's share in the US.
Therefore European web companies needing contextual ads have few other choices than Google.
its really getting serious, the dollar is just to low now, so its time to move out of the USA and find new sponsors in Europe, it looks like the US gov. dont care about the low dollar, thats also why its important to find something in europe to sponsor sites.
Where are the European cj, value.. casale bla bla or another option is to push the US companies to pay in euro or maybe we can buy there companies soon for nothing be cause the dollar is so low :)
So now should be a good time to learn forex trading and buy dollar nŽest-ce pas?
Over $2 to the pound?!
Are there any Transatlantic supermarket delivery services?
I have a cunning plan to cut my domestic bills in half.