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ArticlesNew Thought Processes for Dealing with a Volatile MarketI think it’s safe to say that the media industry as a whole has experienced an evolution of change due to the resounding downturn in the U.S. and global economies. The declining value of the dollar, coupled with the increase in competition for online buyers has created an environment of uncertainty and uneasiness. This has forced many media groups to consider changes in their online business models to maintain their revenue streams and market share.As a seasoned transaction processor, EC Suite is fortunate to have a global base of clients willing to engage in discussions about the market and how the volatility of the exchange rate has affected their bottom line. Many of the concerns voiced came to a head in mid- to late 2007 when the U.S. dollar hit a 30-year low and the U.S. economy hovered just above the recession mark. At particular risk to unprecedented and deep foreign-pricing discounts were those that marketed and priced their products to a U.S.-base, but accepted foreign payments from consumers around the world. So how do you deal with an economy that is continuing its downward trend? And, how are online media groups expected to survive and continue to grow? Does the answer lie in new localization models, more innovative tools and service options, or new business relationships? Unfortunately, there’s not a "one size fits all " answer to these questions. Each business will need to identify their unique "pain points " and then determine the best path to take. While the following provide options for improved business and sales performance, none are the proverbial "silver bullet." One popular initiative that we’ve experienced first hand is having both a U.S. and a non-U.S. website presence with region-specific language, content and pricing for each site. This is called "Geo-Targeting. " There are many Geo-IP solutions providers that sell licenses, and there are API’s that automatically detect an end user’s city, country or region. While this option is relatively inexpensive, it does require some level of monitoring and resource time on behalf of the website owner. There is, however, a simpler and more prevalent method. It achieves some localization, but with less controlled results because it places responsibility on the user to choose their home, e.g., their city, country or region, from options posted on the website index page. One of the bigger challenges for the media market is its difficulty to see beyond its own borders. However, those who have chosen to expand into international markets are driving more revenue. Having spent their initial investment on market research they are "in the know " as to what the consumer wants and what they’ll pay for it. In addition, they are in the enviable position of having the ability to easily utilize the many localization tools offered by processors and third-party providers including, Multi- Currency and Multi-Lingual Forms, International Card Offerings, and Alternative Billing options. For our clients who are utilizing our proprietary EC Suite preset "Regional Pricing " feature, we have seen a significant increase in their sales and revenues. As with any economic downturn, there will be those who choose not to weather the storm. There will also be those faced with difficult business decisions that two or three years ago they wouldn’t have even thought of. We‘re thankful that only a few of our clients have sold their online businesses. The majority have chosen to accept foreign investment to increase their international presence or to manage their own merchant accounts in an effort to counter the weak U.S. dollar with lower rates. In the end though, the real question might be, how has the economy, coupled with the addition of User Generated or "Tube" sites, and the ever present competition for the entertainment dollar affected online sales volumes? Overall, volumes are fairly consistent and have followed the same calendar-driven ebbs and flows as in previous years – so far. I think the danger lies in choosing not to adapt to a changing and volatile market. If you continue doing the same thing now that you did last year, you run the risk of your volume being affected in a negative manner. However, from what we have seen on the processing side, those who are proactively making changes to address their international marketability are at the very least enjoying very stable numbers in 2008 and are better prepared for what the future might bring. Laurie Biviano is the Vice President of Education & Marketing for EC Suite; a leading provider of complete e-commerce solutions, affiliate management, wholesale bandwidth, and content protection. 
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