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Ad Rank and currency competition Hungarian Forint-vs-$$

[ Edited ]
Collaborator ✭ ✭ ✭
# 1
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Hello,

 

How do 2 AdWords accounts compete on a US market , in terms of Ad Rank computing, if one uses in his campaigns the Hungarian ( Europe) currency which is today

US Dollar equals
225.62 Hungarian Forint
 
Wouldn't I better advice clients to open accounts in this easier to divide currency ?
 
Won't they have a better chance at winning an adwords bid by tweaking such a division 1 cent = 22 forints ?
 
What exchange rate is used for the equivalence ?
 
[later edit]
 
I mean if the competition has 0.10 $ MaxCPC ( 22.56 forint) and we have identical QS , and I set a bid for 23 forints , I win the bid ? Or I will never know , as google doesn't tell me what currency my competition uses and what currency google uses to make an equivalence ?
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2 ACCEPTED SOLUTIONS

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Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: Ad Rank and currency competition Hungarian Forint-vs-$$

Top Contributor
# 2
Top Contributor

Hello.

 

Any other currency used to be converted in USD first at a rate provided by Citibank. However, the document stating it seems to have been replaced meanwhile. Search for Citibank on the community and you'll find some answers linking to an adwords support doc; that doc, however, no longer states this. I'll alert some Googlers about it, maybe they can restore it.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
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View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Adrian B
September 2015

Re: Ad Rank and currency competition Hungarian Forint-vs-$$

[ Edited ]
Top Contributor
# 8
Top Contributor

1) Mine don't bother. It's overall performance that matters (money out versus money in).

2) No, see 4).

3) I think you're making a confusion here. You're paying in whatever currency you choose when you open your account. My clients all pay in the currency of the country they do business in. Payments are not converted into anything. It's during the bidding process that a common denominator has to be used, because an auction can have advertisers from all over the world bidding for the same term and targeting the same location. So in order to avoid comparing apples to oranges, dollars are used to "normalise bids". But that's all. You bid in Norwegian crowns, win the auction, get your CPC calculated and then you pay in the currency you chose. Payments and bills are in the account currency, bid evaluation happens in USD. They are, of course, influenced by the currency parity, but only during the auction. After that, everything is moved to the chosen currency.

4) I don't do payments for my customers. They own the accounts, I only manage them. And they pay directly to Google, using various payment methods (prepay, postpay, MDO). But there are agencies who handle payments as well, as far as I know, so that's a possibility as well.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

View solution in original post

Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: Ad Rank and currency competition Hungarian Forint-vs-$$

Top Contributor
# 2
Top Contributor

Hello.

 

Any other currency used to be converted in USD first at a rate provided by Citibank. However, the document stating it seems to have been replaced meanwhile. Search for Citibank on the community and you'll find some answers linking to an adwords support doc; that doc, however, no longer states this. I'll alert some Googlers about it, maybe they can restore it.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

Re: Ad Rank and currency competition Hungarian Forint-vs-$$

Collaborator ✭ ✭ ✭
# 3
Collaborator ✭ ✭ ✭

Offtopic : you could add a "Ask AdWise/Calin Sandici" thread for your personal branding as it will show up in SERP , and we could all redirect to you questions about PLA or coding, or out-side of community client leads.

 

This is a topic I couldn't answer even after searching and thinking about it for an hour, and I subscribed to see if you would answer

 

https://www.en.adwords-community.com/t5/Set-up-and-basics/Issue-in-Product-Listing-Add-product-targe...

Re: Ad Rank and currency competition Hungarian Forint-vs-$$

Top Contributor
# 4
Top Contributor

Thank you for your suggestion. Though easy to implement, considering my current load level it would not be very useful, in the end, as I could not watch it as much as I would want to.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

Re: Ad Rank and currency competition Hungarian Forint-vs-$$

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# 5
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This Citybank which is about to lose 7 bilion $ ? Do we have an update about how google converts currencies ?

 

http://www.businessinsider.com/peabody-citigroup-could-lose-7-billion-2013-6

Re: Ad Rank and currency competition Hungarian Forint-vs-$$

Top Contributor
# 6
Top Contributor

No update yet, I'll let you know when I know something.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

Re: Ad Rank and currency competition Hungarian Forint-vs-$$

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# 7
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How do you handle this issue in an "Adwords consultancy contract" .

 

1) The clients who pay in Euro don't care that they lose 2% maybe from the currecy conversion to the $ ?

 

2) Do you ask them all to open accounts using US as a country to enable payment in $ without the currency exchange ?

 

3) My account says that Google is a company in Ireland, isn't this supposed to enable payments directly in euro instead of converting to $ every time ?

 

4) Clients handle their payment directly and you only use the MCC to handle the tehnical data , therefore you don't have to care about payments  ?

Marked as Best Answer.
Solution
Accepted by topic author Adrian B
September 2015

Re: Ad Rank and currency competition Hungarian Forint-vs-$$

[ Edited ]
Top Contributor
# 8
Top Contributor

1) Mine don't bother. It's overall performance that matters (money out versus money in).

2) No, see 4).

3) I think you're making a confusion here. You're paying in whatever currency you choose when you open your account. My clients all pay in the currency of the country they do business in. Payments are not converted into anything. It's during the bidding process that a common denominator has to be used, because an auction can have advertisers from all over the world bidding for the same term and targeting the same location. So in order to avoid comparing apples to oranges, dollars are used to "normalise bids". But that's all. You bid in Norwegian crowns, win the auction, get your CPC calculated and then you pay in the currency you chose. Payments and bills are in the account currency, bid evaluation happens in USD. They are, of course, influenced by the currency parity, but only during the auction. After that, everything is moved to the chosen currency.

4) I don't do payments for my customers. They own the accounts, I only manage them. And they pay directly to Google, using various payment methods (prepay, postpay, MDO). But there are agencies who handle payments as well, as far as I know, so that's a possibility as well.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.