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US Dollar goes down.

My income goes up - people spending more?

     
11:25 pm on May 28, 2008 (gmt 0)

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I'm running adsense on a number of sites, traffic is roughly 40,000pi per day, steady for last 6 months.

In that time, my income in US$ has gone from $4900 a month, to $6,000 a month, which I guess roughly translates to the % the US dollar has tanked against other currencies.

I am in Australia, and the AU$ is nearing parity with the US$,(when I started with adsense it was worth 73US cents)

I watch the US$ move and was getting glummer and glummer each time if fell further thinking my revenue was contracting... now I suspect its not. 80% of my revenue comes from AU traffic, and I guess people are spending a fixed AU$ amount each month on their advertising.... so if the US$ goes down.... their AU$ monthly spend gets them more US$ to spend, prices then rise for ads due to competition and I get a more US$.

I'm not greatly better or worse off as a result. There is a lag effect which hurts me(Getting paid at this months exchange rate, for advertising sold at last months exchange rate in a falling exchange environment is not great)

Wondering if anyone else outside of the US, is noticing their CPC has gone up roughly inline with the fall in the US$?

11:35 pm on May 28, 2008 (gmt 0)

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That's a very interesting observation. I'm glad you haven't suffered!

Don't worry, mate. When the US$ climbs against the Aussie dollar, pull on your tracky daks, toss another shrimp on the barbie and you'll get the advantage of the lag. :D

12:51 am on May 29, 2008 (gmt 0)

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US$ dollar climb? That would be nice, but most are predicting it to continue to fall for some time to come.
5:17 am on May 29, 2008 (gmt 0)

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One never knows, one never knows.
6:01 am on May 29, 2008 (gmt 0)

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Nippi,

Is that right? Agreed, people will spend a fixed amount in AU$ which now buys more US$. But Those US$ you are earning then get converted back to AU$ when you are paid. So the effect of moving currency rates has little effect on the likes of you and me. It may effect the advertisers confidence though.

 

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