The Weak Dollar Presents the Need to Expand Targeting Parameters

MoreVisibility - March 17, 2008

As a Client Strategist, I am often the person that my clients go to for advice about their CPC campaigns and reaching their target audience. Recently, I have had several of my US based clients interested in targeting the Canadian market. Their interest stems from the struggling US economy and a desire to broaden their targeting parameters.

Unless you have been hiding under a rock for the past several months, you are aware that the US dollar is extremely weak right now. I am sure that many of you are experiencing the hole in your wallet while filling up your SUV and/or taking a trip to the grocery store. It seems that the cost of everything is increasing dramatically, while the US dollar decreases in value. Several businesses are feeling the effects of the weakened dollar and are desperate to market their product/service outside of the struggling US economy.

According to a recent article I read, the United States Department of Commerce released 2007 tourism figures that demonstrated how the weak US dollar is bringing more people from overseas to the United States, especially people from Europe. At the end of February, the Euro was trading above 1.5 dollars- which was an all time record. It seems that people who are coming from overseas are taking advantage of the weak US Dollar by buying property within the United States, going on shopping excursions, and traveling to different areas of the United States that they may not have traveled to before. I cannot blame them! The value of the Euro surpasses the Dollar, therefore resulting in more “Bang For Their Buck”, or in this instance their Euro.

Therefore, if you consider setting your target parameters to areas outside of the United States, Canada might seem like the next logical place due to the common language, but don’t forget about Europe. With the value of the Euro at a record high, it might be beneficial to reach this target audience, especially if you are a real estate or travel company. Some of the concerns one might face, could be: how a company from overseas will react to a US based company/product, how a US based company will handle the language barrier, and the ignorance about an international market in general. Although those are valid concerns, I think it is worth the effort to investigate the situation and evaluate expanding the target parameters. There are several people interested in coming over to the US right now for plenty of different reasons, such as the ones mentioned above. Capitalize on their interest and increase your sales revenue by testing and targeting different markets. You never know how it could work, until you try it!