Google pays out in US$, but half of my site's visitors are Europeans, who Google would serve ads from European advertisers. Should not my US$ earnings be increasing with the drop of the dollar, since Google receives payment from European businesses in Euros? Or do they offer them cut-price ads because of the low US$ or keep the exchange differential for themselves?
nobod is paying Google in Euros, all advertisers pay in USD so its normal Google should pay publishers in the same currency right ?
world market (gold, oil, etc) is standardized on US currency. thats why when US $ is weak, you see gold price go up. just not too long ago, gold price was less than $500 an OZ and now its over $1,000, this is due to weak US dollar. foreign currency reserve in other countries in also in US currency. you got a point there. several countries (China, Iran are 2 i can remember) have suggested other stong currency to be used for foreign reserve as US dollar is weak.
Exactly! And I'm sure they keep printing right now! This is getting out of control. AdSense money in Europe is becoming a joke. AdSense is going to lose more and more european publishers.
Because Google gets paid in USD it's easier for them to pay AdSense users in the same currency. Still sucks though!
Yup. But they can't make the dollar too strong because we owe too many. I'd try out a European advertising company (don't know which ones exist?) because the dollar is likely to keep dropping for at least the next few months as recent Fed policy works its way through the system. There could be a "business recovery" before the dollar recovery, but if Google got new advertiser revenue, do you think they'd share it with their adsense workers or their share holders?
It depends on which countries within Europe. Western Europe countries such as the UK, Germany, France, Italy, Spain should result in a higher eCPM, they do in my experience. This is mainy due to the currency factor. But traffic from Eastern Europian countries such as Poland, Ukraine, Czech Republic, Romania will result in a lower eCPM compared to US visitors. So do you have more detailed country stats?
As long as Dollars are treated as International Currency.. But, they do convert it in local currency while sending the payment.
But McDonalds UK pays in Pound Sterling to advertise to UK visitors, they may spend £0.05 per click. McDonalds US will be paying $0.05 per click.
you guys dont get it. When USD is weak your local CCY is strong. Imagine USD:Euro is 1:1.2 ratio before credit mess. Now since USD has lost the value, it could be around 1:0.90. The amount of money you spend in local CCY to get the same adwords spot is less. Its cheap for europe advertisers now if they are bidding on USD. Why on earth they would raise their bids just coz USD is cheap? If anyone wants more explanation on USD strength in coming month, contact me. I work for a investment bank.