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October 23, 2007

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Robb

non-US advertisers and companies that earn foreign currency can bid higher in US dollars and still have the same advertising budget in their native dollars. But US bidders earning US dollars aren't in the same boat. US companies that sell outside the US must be benefiting with more sales to customers who now view their products as 'cheaper'. As the dollar falls, foreigners will be yelling 'Buy American'! I can only imagine what the Canada/US border holiday shopping will be like this year.

David Wrixon

Not strictly true. Those whose revenue derives from the US are stuck with dollar depreciation, but frankly it is still the amount of money pouring into advertising that is the most critical. Recession will probably bring more advertising to the internet than ever before.

If you are in say the Japanese market, the value of the dollar will have little impact, even if you are paid in dollars, as the bids will be in Yen.

DrunkOski

That's the beauty of the German IDN that were recently sold for hefty amounts and written up at DNJ -- the PPC from that has likely appreciated as the Euro has.

Same can be said for domain names relevant to other countries with an appreciating currency.

Of course, the upstream advertising provider is likely taking a healthy cut of the currency spread, but that'll erode as more competitive domestic advertising options appear.

Carlos

Hi Frank!

Yeah with US Dollar coming down it gets easyer for us from countries where currency is weaker to purchase .com's. I only venture on my contry TLD's but with this news i decided, following all i've learned reading your blogs, into spending a few savings and
registering some .com's even english not being my primary language. Just got puzzlesnriddles.com, plantsdiet.com, healingherbsinfo.com, plantsthatcure.com, addictsforums.com, addictionrecoveryguides.com, and addictschat.com. Do you think i'm in the right path or i didn't "get" it yet and got junk domains ? hehe. Maybe i misspelled some of em by mistake. Thanks for your precious avail, i take your opinion on my purchases as an "test" to see if im doing well in the domaining university that your blog became!

Thanks a lot!

Carlos.

David Wrixon

Robb,

The reason the dollar is weak, is because you are not selling product people want at the price they are prepared to pay. The problems are systemic and getting worse. One of the biggest underlying problems is a failure of the education system. That will take a generation to fix.

OK, dropping the dollar a bit might mitigate things a little, but it ain't going to change the fact that 80% of your Christmas toys are imported from China. Could make a lot of stuff more expensive though.

Andrew

Valid point on PPC in U.S. dollars. Domains that reach a non-u.s. audience may have more value, especially if they are on a platform where bids are in Euros/Pounds/et al

Charles

I'm buying domains at auctions in US$ that let me target high-paying UK-only visitors. So, I'm buying cheap and selling high. I love it.

It brings my American girlfriend almost to tears though every time she visits the ATM in England. She hits me when I tell her I dream of $3 to the pound sterling.

IDNconsulting.com

"Only problem is that traffic payments are made in USD.. so we're not as imune from dollar flux as we might seem."

This does not affect people that are vested in International Domains. My PPC is mainly Japanese and im loving it.

Drewbert


Maybe Microsoft or Yahoo can beat Google by being the first to offer a true multi-currency PPC system?

One where you have multi accounts in different currencies, and can shift money between them at will :)

David Wrixon

And this is where the "We get it awards" should really be going:

China currency float to unleash 'tsunami': Australian treasurer

http://afp.google.com/article/ALeqM5iH2N-0jKwKz6tZJsU-Ai_2Zw3sSA

Drewbert


Gold moving up towards $800.
Silver past $14.
USD not looking good.
Peso holding it's hand.


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