1) Is the products or services you are targeting only for a specific area or location only, and no other place?
2) Are there going to be other related products or services for that area or location only?
3) Is this going to be a international product or services?
4) How many countries are we talking about?
If you answer yes to no 1 and 2, then set your Adwords account to the country’s currency which you are targeting. If you answer yes to no 3 and ‘Many Countries’ for question 4, then set to the U.S currency, as most of the online transaction is using U.S currency.
You can also make it easy for you to do accounting when most of the online transactions are in U.S dollars.
BUT, most of you will still use your own currency to do the PPC payment. This is not wrong at all. It actually makes perfect sense to do this, as its easier for you to account for the costing too. And Google Adwords will also ask you for your credit card or debit card details, the cards are most likely to be from the country you live in too.
One thing to note is that as currency values are different, and they varies day to day. It is a good pratise to adjust your bidding price weekly for the first 4 months. Once your campaign is stable and gain good quality score, then you can stop adjusting the bidding price.
Of course, you will have new competition come competing with you always. Depending on how big is the market, the bigger it is, competition will be very tense and tough as well. In this case you might want to use some spy tools to spy on your competitiors, and monitor if they are making profits if their PPC ads still show after some time.
My Take Home Advise
I would prefer to use local currency for local online marketing, and U.S currency for all international products and services online. This is my preference, what you need to do, is to find out what suits you best, then set according to what you want.
The pros and cons for using different currency and local currency are already stated above. You will need to find out yourself. If you do not know what to do? Then follow my example, it will save you a lot of time from deciding things that are not making you money. Remember Adwords PPC are quick and result driven, so you must be like one too. Talk to you soon…