Why Tier 1 Countries Have the Most Buyers?
For proper focusing on the target audience marketers have different strategies. And when it comes to digital
marketing it becomes important focus and audiences that are potentially important from the business strategy
perspective. For this, marketers take classification of markets based on geographical, areas that is countries
as a basis for implementing their marketing strategies.
The countries are in turn categories according to
criteria like per capita income, Human Development Index, etc.
The classification of countries into Tier 1 and Tier 2 is done by Trafficking in Person Report, also known as
TIP Report. The TIP Report is an annual report issued by the US State Department.
Why is it important?
The classification of countries into Tier 1 and Tier 2 is useful in the context of marketing.
It’s important to locate where more traffic is there. This will help build the right marketing strategy while
promoting various products and services. It is more relevant in CPA marketing.
What is CPA?
CPA stands for cost per acquisition. It is also known as cost per action or pay per acquisition that is PPA. It
is a pricing model for online advertising. The online advertiser has to pay for specified acquisition; for
example click, sale or form submission and so on.
A great majority of advertisers prefer traffic from a specific group of or Tier of countries. This is clear when
marketers go on a campaign, they will have a clear strategy on which group of potential customers they can
consistently attract and do good business.
On the other hand, if you create traffic from locations that are not appropriate from the CPA perspective the
advertisers will have the exclusive right to deny payment for the aforesaid conversions. Therefore, the best
thing is geo targeting strictly without infringing what advertisers are looking for and the Tier they want in
Formulating the right digital marketing campaign is essential for the creating audience. It’s a challenge for
marketers. In this context, Geo targeting and gives better control on the various aspects like ads and it also
loves you and also enables you to benefit more from marketing efforts.
Implementing Geo targeting exercise benefits:
- The audience can be targeted properly by propagating on the appropriate content.
- You Stay away from competitors and watching them without their knowledge new rate will help build a better relationship with your audience.
- You can use your targeting along with an set of marketing channels.
- You will get knowledge on new market
- It will reduce operating cost
Importance of specific GEO zone
Advertisers generally prefer specific Tiers instead of all regions. The regions have been classified into three
namely Tier 1, Tier 2 and Tier 3.
Tier 1 countries
Tier 1 is a set of countries that every CPA hankers to acquire. It is the group of wealthiest countries with the
best social indicators and therefore is the most competitive countries.
Tier 1 countries include Austria, Australia, Belgium, Denmark, Canada, Finland, Germany, Ireland, France,
Italy, New Zealand, Luxembourg, Netherlands, Spain, Norway, Sweden, Switzerland, the United States of
America and the United Kingdom.
Tier 2 countries
Tier 2 countries try to control service from diverse locations. Therefore, there is less free traffic, and the
quality of traffic is also not as great as Tier 1.
Tier 2 countries are between the affluent Tier 1 and developing economies Tier 3 (Developing economies
with low buying power).
The conversion rate is lower as compared in the case of Tier 1. So in Tier 2 countries, a higher number of
clicks are required to sell the product.
Tier 2 countries include Argentina, Andorra, Bahamas, Bolivia, Belarus, Bosnia and Herzegovina, Brazil,
Bulgaria, Brunei, Chile, Colombia, China, Croatia, Costa Rica, Czech Republic, Cyprus, Ecuador,
Dominican Republic, Egypt, Fiji, Estonia, Greece, Hong Kong, Guyana, Iceland, Hungary, Israel, Indonesia,
Kazakhstan, Japan, Lithuania, Latvia, Malta, Macao, Mexico, Malaysia, Morocco, Montenegro, Panama,
Nepal, Oman, Peru, Paraguay, Philippines, Portugal, Poland, Qatar, Puerto Rico, Republic of Korea (South),
Russian Federation, Romania, Serbia, Saudi Arabia, Singapore, Slovenia, Slovakia, South Africa, Turkey,
Thailand, Ukraine, United Arab Emirates, Uruguay and Vanuatu.
Why it has the most buyers for various online businesses
Tier 1 countries have the most bias for various online businesses. There are various reasons. These countries
have a high per capita income coupled with high life expectancy and literacy. The economies of these
countries are resilient. They can recover from an economic downturn quickly.
All these factors make Tier 1 countries an envious proposition for CPA marketing and advertisers.
Tier 1 countries have strong attributes like it is print a lot of profitable traffic is there.
The traffic quality is impacted by set and factors success even though there is not profitable traffic much,
there is not much profitable traffic there may be poor quality traffic.
There is also considerable amount of traffic because of bots. The traffic generated by boats may lead to a
situation called plague that affects affiliate marketing. This vitiates the whole lot of traffic on the Internet in
Tier 1 countries.
The literacy is high and most people speak English. This makes it easier to propagate information and
Tier 1 countries having have always been the ultimate source of genuine traffic for advertisers and marketer.
This might be attributed to the well connectivity, which leads to quick, informed and efficient decision. This
is likely to help the volume of traffic as well. There is tough competition for the traffic from developed
There are different groups of customers in a lot of traffic.
The payout is high and hence business will be profitable.
Market regulation: The market regulations make the market more profitable without any profitable for all
without any discriminatory boys. Regulations do not reduce the volume of traffic.
Disadvantages of working with Tier 1 countries:
- There is high competition. It has become tough to promote financial products like forex or binary.
- It comes at a high premium.
- There are strict regulations enforced with respect to product types and creatives.
- Most CP markets have been working for several years. The market is saturated. It is highly complex
- and makes it a herculean task to bring attractive offers.