Weak dollar and AdSense earnings?

[UKSBD]

Does anyone know if the weak dollar has any effects on AdSense earnings?
By theory, the weaker the dollar the higher (in dollars) we should earn, is
this the case?

[Brian Turner]

So far as I understand it that's not the case at all - instead, Adsense is paid by Google Inc, an American company, in USD. Because of the high exchange rate, that means we receive a lower income.

ie,
$3000 at exchange rate of 1.5 £/$ = £2000
$3000 at exchange rate of 2.0 £/$ = £1500

So as the value of the pound goes higher, so the lower the value of each dollar from Adsense.

[tamecrow]

Yes, I think you're right, Brian. The companies aren't paying any more on Adwords as a result of the weak dollar, so I shouldn't imagine that Adsense publishers are receiving any more.

[UKSBD]

Originally Posted by tamecrow

Yes, I think you're right, Brian. The companies aren't paying any more on Adwords as a result of the weak dollar, so I shouldn't imagine that Adsense publishers are receiving any more.

When I run an AdWords campaign I set my limits in sterling, so I am paying
more in US Dollars. Nearly all my AdSense is set up for the UK Market and
as most the advertisers will also have their set up in sterling, they should
also be paying more in US Dollars.
Does that make sense?

[UKSBD]

Originally Posted by Brian Turner

So far as I understand it that's not the case at all - instead, Adsense is paid by Google Inc, an American company, in USD. Because of the high exchange rate, that means we receive a lower income.

ie,
$3000 at exchange rate of 1.5 £/$ = £2000
$3000 at exchange rate of 2.0 £/$ = £1500

So as the value of the pound goes higher, so the lower the value of each dollar from Adsense.

Yes, I know each dollar is less in value, but as most my target advertisers
are paying in sterling, by theory if they are still paying the same in sterling
the dollar rate should be higher. Which in theory should mean our dollar
Adsense earnings should be going up in relation.

[Solicitors Mortgages]

With your SERPs, surely you shouldn't be using adwords at all?

Yes you are right though, we Brits always get to pay more. Google should add the option to bid in any currency regardless of location.

[Brian Turner]

Originally Posted by UKSBD

Yes, I know each dollar is less in value, but as most my target advertisers
are paying in sterling, by theory if they are still paying the same in sterling
the dollar rate should be higher. Which in theory should mean our dollar
Adsense earnings should be going up in relation.

But then you're talking about a zero-sum situation - if the dollar rate on sterling bids is higher, it gets negated by the dollar rate on payouts.

Advertiser pays £5 @ exchange rate of £1/$2 = $10.00 = £5
Advertiser pays £5 @ exchange rate of £1/$1 = $5.00 = £5

[layla17]

[quote=Yes you are right though, we Brits always get to pay more. Google should add the option to bid in any currency regardless of location.[/quote]

That's a good idea. I wonder if it has ever crossed Google's mind that it should expand its international offerings and services.

[UKSBD]

Originally Posted by Brian Turner

But then you're talking about a zero-sum situation - if the dollar rate on sterling bids is higher, it gets negated by the dollar rate on payouts.

Advertiser pays £5 @ exchange rate of £1/$2 = $10.00 = £5
Advertiser pays £5 @ exchange rate of £1/$1 = $5.00 = £5

I'll try to simplify this by using we get 50% share of what advertisers
pay in this example.

Advertiser pays £5 @ ex rate of £1/$2 = $10.00 our share = $5.00
Advertiser pays £5 @ ex rate of £1/$1 = $5.00 our share = $2.50

Do you see what I mean?

As the dollar weakens we should get more $dollars as our advertisers
are still paying the same amount in sterling (paying more dollars)

If we are not getting more dollars, but our advertisers are still paying the
same amount per month in stirling, it means google are screwing us.

[dvduval]

All I can say is be happy you have a strong Pound.
I have been watching the dollar get weaker and weaker. I think it takes about $2.10 to buy a pound as of today. I remember around 2000 it cost about $1.40.