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Jul 23, 2001

International eMarketing Firms Undercutting American Prices

SUMMARY: Despite the lagging US economy, the US dollar is still fairly strong on the exchange rate, mainly because everyone else's economies are also lagging. Now marketing firms outside the US are hoping to take advantage of this by promoting their low-to-Americans rates.
In the past week alone, we've gotten two emailed offers of this nature from emarketing services. The first, from New Zealand's eResponse says, "The US dollar buys around $2.40 New Zealand. Yet our rates in dollar terms are similar to those in the USA. For example, our charge for New Zealand $100 would come to around US$42. That's where the saving arises. The same situation applies with the Euro and the Pound." The second, from India's Enfusen states, "We can offer world-class media planning, creative development and technical services - at 1/3 the equivalent US rates."

This trend could be a boon for American agencies seeking more profitable subcontracting relationships. But, it also means US-based subs better start working the local relationship angle harder. (For all you Europeans wondering what the fuss is about, yes, people in the US do frequently do business without ever meeting each other in person.)
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