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Lower CPC with different currency?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello,
we are targeting a lot of very low cost keywords in low cost countries in South East Asia. Our lowest bid there is $0.01 - but we honestly suspect, that it could be even lower with a different currency (for example having Malaysian Ringgit as currency, 0.01 Ringgit would only be 0.0023 USD). 

Is this chain of thought correct and would hence a new Adwords account with a different currency be a possibility to lower our CPCs?

Thank you,

Max

2 Expert replyverified_user
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Marked as Best Answer.
Solution
Accepted by topic author Maximilian G
July 2017

Lower CPC with different currency?

Badged Google Partner
# 7
Badged Google Partner

If you have high impression volume using USD, and your average CPC is $.01, then - Yes. Using the local currency of the country you are targeting may help you further reduce your CPC. However, it does come down to the question of value and ROAS.

 

If you are achieving a profitable ROAS using USD, then you currently have the advantage over other advertisers, as your bids allow you to outrank them. If you are targeting multiple countries, keeping everything in one account can be helpful for management purposes. If, you can't generate a profitable ROAS using USD in a single account, then you have to decide if it's worth the time and effort to create an account for each country/currency.

Tom

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Lower CPC with different currency?

Top Contributor
# 2
Top Contributor

My business tried this a long time ago. There is no advantage using different currencies, unless you are down to the minimum possible charge, ie 1 cent in the USA. 

 

Lower CPC with different currency?

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Thanks for your answer! So in other words - since we are down to the minimum possible charge of 1 cent, we would indeed have an advantage?

Lower CPC with different currency?

Top Contributor
# 4
Top Contributor

Google continuously uses currency conversion rates to adjust bids globally (several times a day)  based on the USD. Any fluctuation in currency exchange rate is quickly adjusted (similar to global trade in currencies.)

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Lower CPC with different currency?

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

I understand that, however my question was not about exchange rate fluctiations but about the possibility to go below the USD minimum bid of 1 Cent with a currency that is lower denoted - since our keywords in SEA are at minimum bid of 1 cent at the moment

Lower CPC with different currency?

Top Contributor
# 6
Top Contributor

Hello again;

Nope;

The minimum bid (if still exists anywhere after so many years....) was 1 cent US, or approx in local currency.

(Do you get clicks at all at that minimum. I have had the impression  - after so many years  - that the ad-rank  threshold - for the ad to be shown- is much higher, which in practice, requires a much higher bid than 1 cent.) 

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’
Marked as Best Answer.
Solution
Accepted by topic author Maximilian G
July 2017

Lower CPC with different currency?

Badged Google Partner
# 7
Badged Google Partner

If you have high impression volume using USD, and your average CPC is $.01, then - Yes. Using the local currency of the country you are targeting may help you further reduce your CPC. However, it does come down to the question of value and ROAS.

 

If you are achieving a profitable ROAS using USD, then you currently have the advantage over other advertisers, as your bids allow you to outrank them. If you are targeting multiple countries, keeping everything in one account can be helpful for management purposes. If, you can't generate a profitable ROAS using USD in a single account, then you have to decide if it's worth the time and effort to create an account for each country/currency.

Tom

Lower CPC with different currency?

Visitor ✭ ✭ ✭
# 8
Visitor ✭ ✭ ✭

Yes, we do get that minimum bid in some countries. We are targeting some ono-purchase intention keywords in some of those regions