I am about to set up an Adwords account, and have read through hundreds of threads on the subject - all the information provided in the forum is VERY much appreciated.
Now, I need to decide what currency to pay in. Bearing in mind that the ranking in Sponsored links is decided by a formula CTR x CPC (or something similar), can anyone tell me how CPC is calculated when your competitor uses USD and you use GBP?
If my competitor pays $0.05 and I pay GBP0.05, and we have the same CTR, I would expect me to be ranked higher because GBP is worth more than USD.
Clearly there must be an exchange rate applied. If this is the case, does anyone know what the exchange rate is? Is it reset daily, weekly, or has it been the same since Adwords started?
I hope I've explained myself OK.
Thanks in advance for any responses, and thanks in retrospect for all the existing information on these forums.
Clearly there must be an exchange rate applied. If this is the case, does anyone know what the exchange rate is? Is it reset daily, weekly, or has it been the same since Adwords started?
Welcome to WebmasterWorld, Nojjers!
Hey, this is not a real area of expertise for me personally, but on another Forum recently an AdWords advertiser quoted a Google rep's answer to a similar question. The quote, pasted below, represents the situation as I understand it to be:
Google converts the bid value to the US Dollar and than determines the ad rank.Before entering the auction, the CPC's are converted into what we call micro-currency. Basically, we calculate currency down to 6 decimal points. Highly exact exchange rates are retrieved daily.
The base currency is the US dollar, or more specifically, one hundred-thousandth of a US dollar, so even dollars are converted, really.
Because this is so granular a calculation, there is no advantage to bidding in one currency rather than another.
AWA
That's just the answer I was hoping for :)
