If you are just at the beginning of your affiliate marketing journey then there will probably be quite a few terms that are still confusing to you.
This is especially true when it comes to online ads.
Between learning about what ad networks actually are and how they work to all the different steps involved in bidding and optimising ads for that people click on them, there is a lot to take in.
In this article, we are going to focus on one area of online advertising which is geo-targeting.
You’re going to learn:
● Why traffic is different depending on where it comes from
● What Tier 1 and 2 countries are
● If there is such a thing as Tier 3
● Why geo-targeting is so important
Ready to learn about geo-targeted ads?
All traffic is the same, isn’t it?
There isn’t a simpler way to explain it.
How valuable traffic is depends on where it comes from. We’re going to have a more indepth look at the different Tiers below but to start us off – all traffic isn’t the same.
You want people to click on your offers and make a purchase, right? OK. So, some countries are (on average) wealthier than others. This means that some people in those countries will have more money to spend than some people in other countries. It means they have high purchasing power and likely more disposable income.
The problem for many marketers is that these countries will be more expensive to advertise in. That being said, the returns can often be much higher so you end up with a better return on investment (ROI).
Picking the right geos for your campaign is vital for its success.
Tier 1 meaning
Let’s start our journey into breaking down the different Tiers and define top Tier countries.
Tier 1 countries consist of:
● Czech Republic
● Korea, south
● New Zealand
● Slovak Republic
● United Kingdom
● United States of America
What these places all have in common is that they are lucrative and people tend to spend money online. For marketers this is important and it is why they try to target these places as much as possible.
Pros of Tier 1 countries
● Very profitable
● Usually English speaking
● Range of traffic courses
Cons of Tier 1 Countries
● Very competitive and expensive to target
● Often have strict regulation
Tier 2 Countries
While Tier 1 countries are what every marketer aspires to get leads, clicks and conversions, there is also Tier 2.
These are countries that are somewhat below Tier 1 as they aren’t generally as wealthy or likely to buy anything online. Some Tier 2 countries include:
● Bosnia and Herzegovina
● Costa Rica
● Czech Republic
● Dominican Republic
● Hong Kong
● Republic of Korea (South)
● Russian Federation
● Saudi Arabia
● South Africa
● United Arab Emirates
This isn’t a definitive list but it covers most of the countries that come under Tier 2. They have less competition as most marketers try and target Tier 1 however they aren’t as lucrative and the traffic tends to have less purchasing power.
Pros of Tier 2 countries
● Traffic is cheaper
● Not as competitive
● Some countries have fewer regulations
Cons of Tier 2 Countries
● Need for localised offers which means non-English landing pages
● Not as profitable
Is there a Tier 3?
Finally what about Tier 3?
There is in fact a level below Tier 2 when it comes to geo-targeting ads. They tend to be avoided by many marketers for several reasons.
Some Tier 3 countries include:
● Central African Rep
● Equatorial Guinea
● North Korea
● Papua New Guinea
● Saudi Arabia
The reason that they are in Tier 3 is because traffic from these countries usually don’t have great purchasing power and many offers can’t be promoted due to religious and cultural reasons.
The traffic is very cheap and you won’t face a whole lot of competition but you’re unlikely to make a lot of money either. Many people use Tier 3 to start off their online marketing journey and to test out various strategies before moving up.
Geo targeting in marketing
It is important that you consider geo-targeting when you are making and promoting your ads online.
Even though Tier 1 offers the most lucrative leads, many marketers will start out targeting Tier 2. This is because it is a bit less competitive but there is still the opportunity to make money.
Much of this depends on what offers you are actually promoting. Some might be more suitable to certain Tier 2 countries than Tier 1.
Tier 2 and Tier 3 has lower competition and gives you the chance to spend less money.
Geo-targeting is vital for any marketer and choosing the right Tier and right countries for your budget and your offers will be the difference between success and failure.