Jun 23, 2007

Google’s International Challenges

As described in our article International Google Ads, Google’s global advertising revenues continue their upward progress.

Yet senior executives are focused on potential international trade risks that result from expanding Google's search engine businesses in foreign markets.

Here are some challenges that Google faces.

  • Difficulties in developing Google products and services in different languages and for different cultures.
  • Longer payment cycles in some countries.
  • Elevated credit risks and higher levels of payment fraud.
  • Currency exchange fluctuations; recent weakness of U.S. dollar boosted the value of international revenues by over 3%.
  • Foreign exchange controls that could prevent Google from repatriating cash earned outside the U.S.
  • Import and export requirements that may prevent Google from shipping products or providing services to a particular international market and may increase company operating costs.
  • Political and economic instability.
  • Volatile revenue growth in emerging markets compared to more developed countries.
  • Higher costs associated with doing business around the world.
  • Failure to compete effectively with local information providers.

As an international trade feature writer, I need to put on my thinking cap as well. Specifically, I need to figure out which search keywords will return the highest ad revenues from around the world.

Any suggestions?