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Countries around the globe are often divided into three tiers. In this article, we'll talk about how to choose a GEO for advertising campaigns and how to manage countries in tier 1, 2 and 3.
If you're new to traffic arbitrage, you may have wondered how to decide which country to advertise in? Around the world, countries can be roughly divided into three tiers. Tier-1 includes the most developed and attractive to advertisers countries, while Tier-3 consists of developing countries.
Why is there a division of countries in arbitrage?
The use of modern technology makes it possible to distribute advertising all over the world. What are the implications for arbitrageurs? Of course, there are great opportunities for them. However, there is one caveat - there can be different difficulties in each country. To make the webmaster's job less complicated, all countries are divided into separate tiers.
Economists divide countries into three categories (tier): developed, developing and third world countries. The fundamental factor for their analysis is the degree of economic development.
Geo in arbitrage is broken down into several levels, which are based on the client's financial capabilities and average income.
However, another important element should be singled out - the possibility of online payment for goods. This was first offered in developed countries - the U.S., Canada, Western Europe, Japan, and so on. While cards and electronic payments were new in other parts of the world, affiliate marketing grew rapidly in those countries.
The emergence of many different payment solutions in virtually every part of the world has made second- and third-tier countries increasingly attractive to affiliates. This includes options such as cards, online banking and sms payments.
In addition, a country's political situation and the specifics of its marketing rules determine which group a country is assigned to. These elements allow us to divide countries into 3 main categories.
List of Tier 1,2,3 countries.
It should be noted that there is no set list of countries that can be classified as Tier 1, 2 or 3. Usually this classification is based on individual experiences. It is also possible for countries to move from one group to another.
Tier 1 countries.
Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Italy, Iceland, Ireland, Netherlands,
New Zealand, Norway, Spain, Slovenia, Sweden, Switzerland, Portugal, Poland, United Kingdom,
United States of America.
Tier 2 countries
Albania, Andorra, Argentina, Belarus, Bosnia & Herzegovina, Brazil, Bulgaria, Croatia, Cyprus, Estonia, Greece, Hong Kong, Hungary, Japan, Latvia, Lithuania, Macedonia, Malta, Moldova, Montenegro, Republic of Korea (South), Romania, Russian Federation, Serbia, Singapore, Slovakia, Turkey, Ukraine, United Arab Emirates.
Tier 3 countries
Algeria, Angola, Armenia, Azerbaijan, Bahrain, Bangladesh, Barbados, Belize, Benin, Bolivia, Botswana, Burkina Faso, Brunei, Burundi, Cambodia, Cameroon, Cape Verde, Chad, Chile, China, Colombia, Comoros, Costa Rica, Congo, El Salvador, Ecuador, Egypt, Dominican Republic, Ethiopia, Gabon, Georgia, Guatemala, Guinea, Haiti, Honduras, India, Indonesia, Israel, Iraq, Jamaica, Jordan, Kazakhstan, Kenya, Kuwait, Kyrgyzstan, Laos, Madagascar, Mali, Malaysia, Mauritania, Mexico, Mongolia, Morocco, Mozambique, Namibia, Nicaragua, Nigeria, Nepal, Oman, Pakistan, Panama, Paraguay, Peru, Philippines, Puerto Rico, Saudi Arabia, Senegal, Sri Lanka, Suriname, Swaziland, South Africa, Thailand, Tajikistan, Tanzania, Togo, Trinidad and Tobago, Tunisia, Turkmenistan, Qatar, Uganda, Uruguay, Uzbekistan, Vietnam, Zambia.
Tier-1 countries are in high demand for arbitrage, but they are also the hardest to deal with. Here you can get the highest rewards, and the cost of traffic is relatively high.
Tier-2 countries are those with less competition and lower traffic costs. However, they are not the least prosperous regions; if managed properly, they offer the potential for profitable revenues.
Tier-3 countries are characterized by relatively low purchasing power. Although the payouts in these regions are usually quite low, there is profit potential here due to the large amount of inexpensive traffic and the lack of sophistication of the target audience.
ier-4 countries in traffic arbitrage, does it make sense?
In addition to the usual first, second and third tier countries, there are also fourth tier countries. There is nothing for an arbitrator to do in these places, because these are countries with unstable political situation and need promotion channels. Very small countries in this category make it impossible to profit from investments in rcs and advertising campaigns. The list of such countries includes Afghanistan, Burkina Faso, Chad, Cuba, Equatorial Guinea, Haiti, Iran, Malawi, Niger, North Korea, Sudan, Syria, and Togo.
Tier-1: Features of the Traffic Approach
Arbitrators view first-tier countries as the most attractive. While opportunities to make money seem plentiful-with enticing payouts and a rich consumer base-it's hard to surprise those who reside in these countries. They are familiar with the products you have to offer and know how to avoid or ignore marketing messages. So launching revshare or cc-submit offers in these countries can be a challenge.
Competition in the first tier is fierce, so it's hard for a newcomer to make a name for themselves. More established marketers have already developed specialized sales techniques and are taking most of the profits.
Not only is competition high in tier one countries, but prices are also high. Traffic from tier one countries will be much more expensive, double or even triple that from other places. This requires a large initial investment on the part of the arbitrator.
Another difference in these countries is the strict legal controls on advertising. Many strategies and approaches are difficult to implement here because of restrictions or prohibitions.
It is generally accepted that first level English is spoken fluently throughout the world. This may be true to some extent, but let's not forget the many European countries. Not everyone in Germany and France speaks English, and Canada has two national languages. When launching campaigns in these regions, it is wise to split-test using both languages and adjust the campaign according to the more successful language. An important aspect of these regions is their value of personal information, which leads to higher sweepstakes revenues than elsewhere.
Tier-2: Features of the Traffic Approach
Tier 2 countries include many states located in different regions of the world. These states are usually quite technologically advanced, so it is not unusual that they have no problems with online payments.
The main feature of these areas is that their residents tend to be quite affluent, but not as susceptible to advertising as residents of more developed regions. This is where you will find your ideal customer: someone who might be interested in a simple offer and who has the means to pay for it. Advertising costs are much lower here than in the first tier, and you don't necessarily need a huge budget to work in these regions - unless, of course, we're talking about highly competitive betting or gambling.
Subscription and data products are particularly impressive in this geo-zone, so you need to be strategic in your funnel allocation! While sweepstakes prizes may not be particularly high here, there will be more people willing to buy the latest cell phone model than in the first tier. Antiviruses, dating services and intelligently chosen gut products should prove successful in this environment.
Tier-3: Features of the Traffic Approach
Third-tier countries are akin to unexplored forests: they have populations that are just beginning to explore the World Wide Web. They welcome ideas and want to buy goods, but the main problem is, can they do it?
Even though the population of these regions may not be the richest, you can still introduce offerings that are unlikely to attract visitors from Tiers 1 and 2. Tier 3, however, has an abundance of visitors and their prices are very affordable. This makes it an ideal environment for both education and entertainment.
When deciding on an offer, be sure to look at what global and local payment systems are available in the country. Also estimate the amount that will be paid to the client and compare it to the median income in that country. It may surprise you that an amount that seems reasonable to you may seem large to your target audience. Keep this in mind when choosing a proposal for third-tier countries.
English may not be the best language in which to express your creativity, unless you are talking about India. Even then, English is only spoken in certain parts of the country or by those who are well educated. Be sure to translate your creations into the local language. It is also very important that you customize your ads so that they appeal to your target audience. Although experienced promoters have already made a fortune in tier one and tier two markets, this market is still enthusiastically welcoming to newcomers. The trick is to get it right!
How do you choose the right GEO to flood traffic?
At first, it may seem like all advertising concepts are identical. However, they are not. When designing an advertising campaign, the culture of a particular country must be taken into account, as its inhabitants have different customs, values and requirements, which may be different even in neighboring countries. Hence, choosing geography for an advertising campaign is not an easy task.
It is very important to communicate with the client in his native language: make sure that your creatives are adapted. This is often difficult to do even for one geographic region, let alone several countries at the same time.
Advertising costs in countries that are close to each other and have the same level will still be different. It is recommended to choose only one geo: this will help you save money and simplify optimization. As a rule, cpa networks themselves determine the country and the type of traffic they target with their offer. What is the risk of unscrupulous traffic? Most likely, such leads will not be accepted and you may not get anything from them.
What other factors influence the choice of GEO?
Factors that influence the decision to choose a geo to launch include economic progress, access to different payment methods, and uniqueness of the target audience. However, another key consideration for arbitrageurs is the amount of traffic available, which will have a direct impact on profits.
The distribution of website traffic by device type is something that is typically studied by each ad network. This data can be useful for those trying to promote a mobile offering. It's fine if your geographic area has enough web traffic. In case the offer is not designed for any particular device, it is wise to study the number of both desktop and mobile devices and tablets.
It has been observed that offers do not always have the same effect on both desktops and mobile devices. In some cases, desktops produce better results despite less traffic coming from them.
The Magic Click team's advice is to separate your campaign into mobile and desktop versions for easier optimization in the future.