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Adwords billing and currency

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello,

 

I just want a better understanding of how Google charges for clicks in Adwords. If my business is Canadian and I advertise around the world, why do I only have to pay in Canadian dollars?

 

The only reason I am confused is because an American company in the USA has to pay USD which is much higher than CAD when convert at the moment.

 

Does this mean it cost more to use adwords in the USA than in Canada right now?

 

Thanks,

Ken

1 Expert replyverified_user

Re: Adwords billing and currency

Top Contributor
# 2
Top Contributor
Hi Ken,
Assuming you and competitor A have identical quality scores and are bidding on keyword X, Google does the exchange rate on their end so your bid of $1.35 will be the same as your competitors bid of $1 (USD). So if you bid $1.35 on a click (all things being equal) and your competitor bids $0.99, you win by a US penny.

Have a read of this: https://en.wikipedia.org/wiki/Exchange_rate

Also, remember, there's a lot more countries and currencies bidding in the US market than just Canadian and US. By your logic, those advertising in Zimbabwe only have to pay $0.00000001 for a click while the US advertiser pays a whole $1.

Anyway, have a read over the exchange rate article above, it should explain how different currencies differ for each other and are exchanged over borders. Hint, it's the same for AdWords as it is for Apples.

Adwords billing and currency

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Hi Dave,

 

I'm also inquiring on this and thanks for the information.  In my case, the franchisor have locations in both U.S. and Canada, we are trying to determine if it's economical if we are bidding in our respective countries.  For example, if they bid ad words in U.S. versus the same ad words in Canada, would it be cheaper in Canada as I assume there wouldn't be an FX impact.