The low dollar

How are you coping?

[johnnie]

Ofcourse this thread only applies to non-US publishers.

Adsense thinks in dollars. At only 0.6818 EUR, the US-Dollar is at an all-time low. Freely translated, this means your $0.10 click is currently only worth €0.07. To me, I don't make that much for it to impact my life. I can however imagina that those relying on adsense earnings are feeling this.

How are you coping with this natural income-drop? Are you putting payments on hold?

[FattyB]

Dropped UK suppliers, made some UK staff redundant and moved their posts to USA staff.

Opened dollar account to pay US staff and suppliers.

I think might be lucky though and a little recovery against European currencies on the card for 08.

Also with remaining UK and European suppliers made position clear, served notice of cancelation and got good discounts for 08.

Tightened personal belt and shifted up a gear on new site development.

With Adsense in particular a double whammy as our 3-year average per click has dropped in the last 3 months from 16 cents to 9 cents and that is on millions of clicks per year.

[edited by: FattyB at 3:01 pm (utc) on Jan. 9, 2008]

[Swanny007]

How am I coping? Well I'm just "sucking it up". Sure I could open a US dollar bank account and play the game of timing the exchange rate. Instead I just put the money in the bank and try to spend a little less :-) I'm hoping to spend less and save more in 2008.

[BeeDeeDubbleU]

Of course this thread only applies to non-US publishers.

Noooooo!

I am based in the UK but Adsense earnings are paid in GBP converted from USD at the current exchange rate. When the dollar was trading at $1.60 to the pound each $100 of Adsense earnings was worth £62.50. Currently at about $1.95 to the pound my $100 is only worth about £51.00.

Quite a difference!

[topr8]

but BeeDeeDubbleU you're scottish aren't you?

how does that make you NOT a "non-US publishers"

[johnnie]

I figure this hurts those adsense-savvies badly. On the other hand,a low dollar does open up some adwords perspective :)

In any case, I won't be complaining when I go to the US later this month :D

[BeeDeeDubbleU]

how does that make you NOT a "non-US publishers"

Probably because I can't read. ;)

[jchampliaud]

How are you coping with this natural income-drop?

I'm not seeing an income drop. In fact I'm making more now than I ever have in terms of US$ and €… by a lot. Could it be that if your advertisers are biding in € or another 'strong' currency and your being paid in the same currency that the lost is minimal? Could be wrong of course.

[IanCP]

Like all things you learn to roll with the punches.

Until recent times most of my AdSense income converted at around $A 0.75 lately it's around $A 0.88

Oh for the days when Amazon cheques were $A 0.52

[Lovejoy]

Adsense is a very small part of my business, but on the sales side to the USA I upped my price 20% across the board after "eating it" for the last three years. Sales actually have gone up since the price hike.

Lovejoy

[nomis5]

Yes the $ is falling but a look at the charts over the past two months shows that the £ is plummeting far worse. Good news for me because I'm a UK publisher. The 52 week worse day (from my perspective as a UK Adsense publisher) exchangewise was early Novemeber 2007. The rate was 2.11. Today the exchange rate is 1.95. I know the same is not true of the Euro but being a UK based publisher, the $/£ exchange rate has dramatically improved over the last two months.
What's the outlook for the £? My guess is that it will fall more against the $ over the next 6 months. The £ is significantly overvalued. The BOE are watching our exports plummet, consumer confidence is totally going down the plughole. Inflation is reported as being in danger of increasing but look at the High Street, we nearly have deflation not inflation. The BOE will reduce interest rates on that basis and the £ will fall more. The interest rates in the US may fall a little further but not as much as the UK. Job prospects in the UK? Falling, so take no risks.

I've stuck my neck out quite ridiculously, what's your view?

[BeeDeeDubbleU]

I've stuck my neck out quite ridiculously, what's your view?

My view is quite restricted because I cannot stick my neck out as far as you.

Sorry ... its a joke ... couldn't resist!

[topr8]

In any case, I won't be complaining when I go to the US later this month :D

you're right there, i just did a month road trip with my brother (in october) we rented a mustang shelby and it was such a good value holiday due to the strength of the pound vs the dollar.

[BeeDeeDubbleU]

I think it's called swings and roundabouts. :)

(I do know what you mean. I did a road trip in the States with my wife a few years ago and were were only getting about $1.38 to the pound - big difference from now.)

[andrewshim]

US100 used to be RM400. Now it's RM330.
Over here in sunny Malaysia, that RM70 difference can feed a family of four for :

1 meal (pizza)
or
1 day (2 McDonalds value meals p/day)
or
2 days (2 economy meals p/day)
or
4 days (2 really budget home cooked meals p/day)

Thank God I don't rely on Adsense as my primary income.

[WiseWebDude]

Just wait until the Feds drop the interest rates again...the Dollar will take a big drop again...they WILL drop the interest rates Jan 29th I think...it's going to just keep getting worse.

[FattyB]

Well the pound may fall faster than the dollar, it has already gone down a bit since a few months ago against it. Plus the Bank of England might drop rates next month. Inflaction pressures with rising energy and food but retail and exporters in UK are keen on a cut I think.

I read some predictions of a dollar recovery of sorts against he pound and Euro for 08 but down against Asian currencies.

Fingers crossed.

[europeforvisitors]

I read some predictions of a dollar recovery of sorts against he pound and Euro for 08 but down against Asian currencies.

I read one analysis that said the pound was likely to fall because the UK and U.S. economies have a lot of the same problems, but the euro is likely to remain strong for the foreseeable future. Still, who really knows?

[eoinoc333]

It's all relative, isn't it. I know that I was getting better exchange rates back 5 years ago with US sales. But you take it as it comes. We're playing a global game, so we have to play with the factors that come with that.

Better to see the current context as the level playing field, and if the exchange rate improves in our (Euro) favour, then great.