Advertisers commonly classify countries into Tier 1, Tier 2, and Tier 3 categories based on their economic status and consumer behavior. Tier 1 includes the wealthiest nations with the highest spending power, while Tier 2 and Tier 3 represent regions with more moderate and lower purchasing capacities, respectively.
Knowing how tiers work in affiliate marketing is essential for crafting an effective bidding strategy for your campaigns. Let’s dive in and break it down!
Tier Traffic in Affiliate Marketing: Understanding Tier 1, Tier 2, and Tier 3 Countries
In affiliate marketing and advertising, tiers are used to classify countries based on their economic potential and purchasing behavior. This categorization helps advertisers target audiences more effectively for mass-market, mid-range, and high-end products. Mastering tier traffic is an essential skill for affiliate marketers, enabling them to optimize campaigns for maximum performance and profitability.
Whats Tier 1, Tier 2, Tier 3?
Tier 1 countries are considered the most lucrative for advertisers due to their strong economies and high purchasing power. These regions typically offer the best potential for converting ads into significant ROI.
Tier 2 countries represent emerging markets with growing potential. These regions often have increasing access to mobile and tablet devices and fewer advertising regulations compared to Tier 1. They present a promising opportunity for affiliate marketers looking to expand their reach.
Tier 3 countries, on the other hand, are often associated with less developed economies. While some advertisers view these regions as lower-quality traffic sources, this perception can be misleading. As you’ll discover, Tier 3 countries can also hold untapped opportunities for creative and cost-effective campaigns.
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Examples of Tier 1, Tier 2, Tier 3 countries
Tier 1 countries, such as the United States, United Kingdom, Australia, Austria, and the Netherlands, are known for their high economic power and strong potential for ad conversions.Tier 2 countries, including Hungary, Turkey, Thailand, and Mexico, may not match the economic strength of Tier 1 nations but still offer substantial opportunities for successful ad campaigns in emerging markets.
Tier 3 countries, such as Pakistan, Senegal, Mozambique, Congo, and Bangladesh, represent less developed economies. While these regions are often underestimated, they can provide cost-effective traffic and untapped potential when approached strategically.
List of Tier 1, Tier 2, Tier 3 countries
The classification of Tier 1, Tier 2, and Tier 3 countries is largely based on income levels. Reliable organizations like the World Bank rank countries by the income their economies generate, which is why nations may move between tiers over time.
Below is a simple table of geolocations to guide your campaign planning. However, keep in mind that these classifications are not absolute and should be used as general guidelines.
| Tier 1 Characteristics: High income of the population, stable economy, high GDP, expensive CPM, CPC, CPA traffic, and massive consumer spending. | Tier 2 Characteristics: medium-level income, medium ad costs, growing economy and fast digitalization, growing or stable consumer spending. | Tier 3 Characteristics: incomes are lower than medium-level, lower consuming capacity, less developed digital infrastructure. |
| Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Iceland, Ireland, Israel, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Saudi Arabia, Singapore, South Korea, Spain, Sweden, Switzerland, United Arab Emirates, United Kingdom, United States of America | Andorra, Argentina, Bahamas, Bolivia, Bosnia and Herzegovina, Brazil, Brunei, Bulgaria, Chile, China, Costa Rica, Croatia, Cyprus, Czech Republic, Dominican Republic, Ecuador, Egypt, Estonia, Greece, Hong Kong, Hungary, India, Indonesia, Japan, Kazakhstan, Latvia, Lithuania, Macao, Malaysia, Malta, Montenegro, Morocco, Panama, Paraguay, Peru, Philippines, Poland, Portugal, Puerto Rico, Qatar, Romania, Serbia, Slovakia, Slovenia, Thailand, Turkey, Uruguay, Vanuatu | Albania, Algeria, Angola, Armenia, Azerbaijan, Bahrain, Bangladesh, Belarus, Barbados, Belize, Benin, Botswana, Burkina Faso, Burundi, Cambodia, Cameroon, Cape Verde, Chad, Colombia, Comoros, Congo, El Salvador, Ethiopia, Gabon, Georgia, Guatemala, Guinea, Guyana, Haiti, Honduras, Iraq, Jamaica, Jordan, Kenya, Kuwait, Kyrgyzstan, Laos, Lebanon, Lesotho, Macedonia, Madagascar, Mali, Mauritania, Mauritius, Mexico, Moldova, Mongolia, Mozambique, Namibia, Nepal, Nicaragua, Niger, Nigeria, Oman, Pakistan, Senegal, South Africa, Sri Lanka, Suriname, Swaziland, Tajikistan, Tanzania, Togo, Trinidad and Tobago, Tunisia, Turkmenistan, Uganda, Uzbekistan, Vietnam, Zambia |
Do Tier 4 countries have potential?
Tier 4 is not an officially recognized category in databases or media but is sometimes referenced in advertising campaigns. Countries in this group, such as Burkina Faso, Malawi, Iran, and Afghanistan, are typically considered less profitable for high-cost conversions due to their lower income levels and restricted economic activity.
However, many marketers see potential in these markets. With the right expertise and traffic optimization strategies, even lower-income or closed economies can become valuable opportunities for conversions.
Offer types with the highest potential:
- Sweepstakes
- mVAS
- Antivirus
- VPN
- iGaming (with low deposit rates)
The classifications above are based on data from reputable research institutions, such as the World Bank’s system for categorizing economies by per capita income. However, this approach has its limitations. Many developing countries include affluent regions that rival the economies of top-tier nations, yet these countries are often placed in lower-tier groups.
For more precise targeting, it's crucial to dive deeper into a country's specific economic and consumer behavior by consulting media reports or official sources.
Helpful sources:
- World Bank Group – World Development Indicators | DataBank
- American Council on Consumer Interests – World Bank Tiers
Each ad network assesses geographies based on their potential to drive conversions. While two networks may classify a country as Tier 1, the cost of traffic can vary significantly, and the traffic profile may differ. For instance, certain offers may perform better on mobile and tablet devices, while others may be more successful on desktop platforms, and so on.
In the end, targeting the right tier countries can significantly influence the success of your affiliate marketing campaigns.
Advantages and Disadvantages of Tier 1 Traffic
Each tier in affiliate marketing comes with its own set of benefits and challenges. For Tier 1 countries, the key advantages include higher commissions per conversion, strong purchasing power, and a wide variety of CPA offers available through networks. Additionally, these countries tend to have fast internet speeds, even on mobile and tablet devices.
However, there are also some challenges to consider when targeting Tier 1 traffic. Advertisers must navigate strict advertising regulations and face intense competition, which can impact overall campaign performance.
| Tier 1 traffic advantages | Tier 1 traffic disadvantages |
| Lots of high-paying offers Many English-speaking users Highest payouts for affiliates High internet speeds and robust digital infrastructure Mobile adoption is high People are purchasing expensive goods and services Lots of relevant traffic High-quality conversions Payment systems availability | Most-expensive traffic Highest competition Sophisticated audience Stricter regulations, especially in iGaming Audiences often use ad blockers People value their privacy highly and are hard to convince to pass surveys or opt in for sweeps |
Best Tier 1 offers
- E-commerce
- iGaming
- Mobile Utility
- Consumer electronics
- Games
- Education
Tier 2 countries are often seen as less lucrative in terms of payouts, but our experts advise against writing them off. In fact, you can achieve similar earnings by securing a larger volume of conversions at a lower cost.
There are several compelling reasons to target Tier 2 countries. Their purchasing power can vary significantly from one country to another, so it's important to conduct thorough research before dismissing any specific location.
Many countries in this tier have solid technological infrastructure, including widespread mobile adoption and advanced online payment systems. This makes them an attractive market for affiliate advertising, with high conversion rates and significant potential for success.
| Tier 2 traffic advantages | Tier 2 traffic disadvantages |
| Less competition than in Tier 1 Loads of traffic Decent consuming capacity Traffic is cheaper Robust, emerging digital infrastructure Mobile traffic volumes are huge Quality conversions People are used to shop and pay online Ad block usage is less frequent | Fewer payment systems available; many local paysystems in use Many languages; localization is imperative here Many differences in audiences’ pain points and values Legal regulation need to be taken into account Fewer audiences buy luxury or premium goods |
Top offers for Tier 2 countries
- iGaming and Sports
- Social apps
- VPN
- Dating and Communication
- Finance (Make money online)
Tier 3 countries are often described by affiliates as having high traffic volumes, fewer regulations, and the lowest conversion costs. However, this traffic segment can be challenging to navigate.
Audiences in these regions tend to make fewer online purchases, are more inclined to save rather than spend on high-cost items, and have lower conversion rates overall.
Traffic behavior varies widely across Tier 3 countries, so it's important to tailor your approach accordingly. Cultural differences also play a significant role, requiring affiliates to invest more time in adapting ad creatives and prelanders.
Despite these challenges, Tier 3 countries have made significant progress. With widespread 4G/LTE and Wi-Fi coverage, a growing number of mobile internet users, and expanding online payment options, these markets offer compelling opportunities, especially when combined with attractive traffic costs.
| Tier 3 traffic advantages | Tier 3 traffic disadvantages |
| Lowest traffic costs (in some countries, like Kenya and South Africa, however, prices have soared in 2022-2023) Massive traffic for various offer types Low competition Very few legal regulations in many countries, but there still can be cultural and religious barriers Less demanding audiences More opportunities for the simplest offers like Sweeps or Surveys Fewer ad-block users Growing mobile device adoption | Low payouts even for conversions (if compared to Tier 1) Lower spending potential in general, however, it strictly depends on the country Cultural and religious specific matters a lot Translation to local languages may be required Low demand for expensive goods Online payment infrastructure is less developed |
Best offers for Tier-3 countries
- Social apps
- Sweepstakes
- Finance (Make money online)
- VPN
- Antiviruses, Cleaners
- mVAS content
Here’s an insight from Adsterra experts: the global economic classification is becoming outdated. The post-pandemic world is undergoing rapid transformation, with many countries evolving and new technologies being introduced. This means we can no longer rely solely on traditional lists of “prosperous” and “non-prosperous” countries.
As an experienced affiliate, staying on top of trends and testing emerging traffic sources is key. Countries like China, Singapore, India, and South Africa are quickly becoming some of the most promising geos for payouts and conversions.
We’re also seeing a continuous rise in demand for traffic and new offers emerging in these regions:
- Brazil
- The Philippines
- Singapore
- Portugal
- Turkey
- Indonesia
- Vietnam
- Kenya
- Nigeria
- South Africa
- Mozambique
Which Tiers Should Affiliate Marketers Focus On?
It's advisable to gain expertise in promoting across all tiers to diversify your income streams. For instance, while targeting Tier 1 countries can yield higher returns, it often requires a larger upfront investment and comes with greater risk. Conversely, focusing on Tier 2 and Tier 3 countries can offer more cost-effective campaigns with lower conversion rates, yet still provide potential returns.
Before launching a campaign, be sure to research each tier thoroughly to ensure your offer aligns with the market and that the conversion flow is achievable.
Examples:
- When promoting an mVAS (PIN Submit offer), you’ll encounter more regulations in Tier 1 countries compared to Tier 3.
- Offers like Sweeps, which require users to fill out lead forms, may struggle in many countries where users are hesitant to share personal information.
- For iGaming offers, be mindful of the deposit requirements. Ensure that players in your targeted geo can meet the required deposit amount.
You don’t need to remember every detail about each tier — experience comes with practice. Dive into case studies about targeting different countries to expand your knowledge. You can explore media sources like Mobidea, affiliate marketing forums such as this forum (AffLift), or access focused affiliate case studies in our ad network to sharpen your skills.
FAQ about Tier 1 traffic:
Conclusion
We’ve explored the “tier traffic” landscape, which typically consists of three categories: Tier 1, Tier 2, and Tier 3 countries. Understanding which tiers offer the highest potential for successful campaigns is crucial, especially if affiliate marketing is your profession.
Now, you can confidently choose the most valuable tiers for your ad strategy, whether you're targeting mobile & tablet or desktop traffic. There are no inherently good or bad tiers—what matters is understanding their pros and cons. The key is to have a reliable traffic source that allows you to purchase high-quality traffic from any tier.
