Tier 1, 2, and 3 countries are universal terms marketers use to rank geos by consuming capacity. Geos with the wealthiest economies are placed in the Tier 1 countries list. In Tier 2 and 3 countries, people spend less money and buy less frequently.
Understanding “what is tier in affiliate marketing?” is important to defining your bid strategy when you launch ad campaigns. So let’s deal with this right now!
What is Tier in affiliate marketing
Tiers in digital advertising are rankings of countries. These rankings divide countries by their potential to deliver ad conversions for mass-market, mid-class, and expensive products. Operating such traffic is a key skill for affiliate marketers, as it helps launch campaigns with the highest output. So, you see the “advertising country tier list” in a marketing platform’s documentation, it’s exactly the same grades for geos.
Affordable rates for Tier 1 countries and high CPM for Tier 3. Is it possible at all? Absolutely, if you deal with a user acquisition platform that utilizes smart matching algorithms. Our publishers get strong payouts while marketers acquire audiences at competitive prices.
Tier 1, Tier 2, Tier 3 meaning
Tier 1 countries are usually the wealthiest countries with the highest levels of disposable income. They’re one of the most desirable for ad targeting. Countries from this group are the world’s most powerful economies with the highest budgets. Strong legal frameworks with lower corruption and high government accountability are essential for Tier 1 classification.
Tier 2 countries are the next best option for affiliate marketers, as they refer to evolving markets with the highest potential. It is usually followed by a decent mobile & tablet device penetration, along with fewer regulations compared to the first group.
The Tier 3 meaning is also simple: these are geos with less developed economies. Most advertisers think of them as poor-quality traffic zones. Well, it’s a barefoot statement, as you will make sure later. Other tiers are collected by the same principle.
Tier 1, Tier 2, Tier 3 countries examples
Countries such as the USA, the United Kingdom, Canada, Australia, the United Arab Emirates, the Netherlands, and Germany are commonly recognized as Tier 1 countries. Tier-2 geos–while not as promising as their rivals–offer good potential for ad conversions. Examples of such geos include Hungary, Turkey, Thailand, Costa Rica, and Mexico. Examples of tier-3 countries include Pakistan, Senegal, Mozambique, Congo, Bangladesh, and other countries.
Tier 1, Tier 2, Tier 3 countries list
Most of the “three tiers” classifications are income-based. Trusted sources like the World Bank classify every geo by the income its nation generates, which is why countries jump from one list to another.
Tier countries’ key differences
Main differences stem from these 4 factors: income level and acquisition power, legislation, competition for audiences, and ad costs. Countries named as Tier 1 tend to have stable, highly developed, mature economies, resulting in a high national income. The residents of Tier 1 countries get high average wages and possess significant disposable income.
Here’s an easy-to-digest table of geolocations you can use when planning to launch a campaign. But remember, all such classifications are approximate.
| Tier 1 countries | Tier 2 countries | Tier 3 countries |
|---|---|---|
| Characteristics: High income of the population, stable economy, high GDP, expensive CPM, CPC, CPA traffic, and massive consumer spending. English-speaking countries. | Characteristics: medium-level income, medium ad costs, growing economy and fast digitalization, growing or stable consumer spending. Local languages come along with English. | Characteristics: incomes are lower than medium-level, lower consuming capacity, and less developed digital infrastructure. The population speaks English, but local languages are highly important. |
| Advertising: Advertising in Tier 1 countries requires larger budgets due to stiff competition for views and clicks (CPC). | Advertising: Tier 2 countries often have lower competition and advertising costs compared to Tier 1 countries, making them a viable option for advertisers. | Advertising: Tier 3 countries typically have the lowest advertising rates, but also the lowest conversion rates. But new economy boosters like South Africa and Nigeria prove it’s an outdated take. |
| 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 |
Reasonable traffic costs and loyal audience coming from all tiers: that’s what 15K of our advertisers get daily. Add desktop, mobile, and tablet top tier traffic to your marketing!
Tier 4 countries: do they have potential?
The Tier 4 group has no place in official databases and media. Still, you can come across this category when launching a campaign. Countries from this group are considered less profitable in terms of high-cost conversions: Burkina Faso, Malawi, Afghanistan, and others.
Many marketers believe lower-income and closed economies are prominent. If you target your messaging and optimize traffic for conversions, you will succeed. People generally prefer taking chances, holding strong cultural beliefs and ties, want to anonymize their digital footprint, and need affordable or free software.
The same principle collects other tiers.
Offer types with the highest potential:
- Sweepstakes
- mVAS
- Antivirus
- VPN
- iGaming (with low deposit rates)
Insight: How to read Tier classifications?
Classifications like the one above are based on the databases of authoritative research centers. One of these is the World Bank’s system of grouping economies by income (per capita). The main concern here is that many developing countries host the wealthiest regions and can outcompete the No. 1 leader’s economy. However, they’re listed in the second group. So remember to dig deeper for more details about the country you target in the media or other official sources.
Helpful sources:
- World Bank Group – https://databank.worldbank.org/source/world-development-indicators
- American Council on Consumer Interests – https://www.consumerinterests.org/world-bank-tiers
Insight: Why are tier сountries lists not universal?
Every ad network evaluates geos based on their potential to produce conversions. Even though two networks rank a country as tier-1, the cost of traffic may vary hugely, and the traffic profile will be different: one offer type will work better on tablet & mobile devices, another on desktop, and so on.
Pro advice: ask your ad network’s personal manager what geos they have and which offers are best suited for each of them. You can also find out the most-converting traffic type: mainstream, non-mainstream, desktop, mobile, tablet, etc.
Ultimately, targeting the right tier countries can have a huge impact on the success of your affiliate marketing efforts.
Pros and cons of Tier 1 traffic
Every tier in the affiliate marketing landscape has its advantages and drawbacks. When it comes to tier 1 countries, the advantages include the highest commissions paid for conversions, great purchasing potential, and a huge selection of CPA offers in CPA networks. Also, Internet speeds in these countries are high, even on mobile & tablet devices.
However, there are some risks associated with tier-1 traffic as well. Advertisers need to be aware of strict advertising regulations and stiff competition.
| Tier 1 traffic pros | Tier 1 traffic cons |
|---|---|
| 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 | The 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 one offers
- E-commerce
- iGaming
- Mobile Utility
- Consumer electronics
- Games
- Education
Tier-2 traffic pros and cons
Tier-2 countries are considered to be less rewarding in terms of payouts. Our experts don’t recommend believing this statement, mainly because you can make the same money with a larger number of conversions and less spending.
There are many reasons to target Tier 2 nations. For one, their spending potential can vary greatly depending on the country, so it’s essential to do your research before ruling out a particular location.
Geos from this group boast solid technological development, including online payments and mobile adoption. This makes them a promising segment of the affiliate advertising market, with a high conversion rate and plenty of potential for success.
| Tier 2 countries pros | Tier-2 countries cons |
|---|---|
| The competition is less stiff 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 regulations need to be taken into account Fewer audiences buy luxury or premium goods |
Top offers to advertise in Tier 2 countries
- iGaming and Sports
- Social apps
- VPN
- Dating and Communication
- Finance (Make money online)
Pros and cons of Tier-3 traffic
Lots of traffic, fewer regulations, and the lowest CPA: that’s how many affiliates can describe the Tier-3 landscape. Nevertheless, this segment of traffic can be tricky to work with.
Audiences from these geos are purchasing online less frequently, prefer to save money rather than spend it on expensive goods, and make fewer conversions. Tier 3 eCPM is good for both publishers and advertisers.
Traffic behavior varies from country to country, and you must keep it in mind when promoting an offer. Cultural differences also play a core role; affiliates need more time to adjust ad creatives and prelanders.
Tier 3 countries have evolved dramatically these days. 4G/LTE and Wi-Fi connections are widespread, mobile Internet users are numerous, and online payment options are increasing daily. These reasons, along with the alluring traffic costs, are enough to add this set of geos to your marketing.
Tier-3 countries pros | Tier-3 countries cons |
|---|---|
| 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 to advertise in Tier-3 countries
- Social apps
- Sweepstakes
- Finance (Make money online)
- VPN
- Antiviruses, Cleaners
- mVAS content
- iGaming (small-budget, bonus-driven offers)
New Tier 1 competitors to consider in 2025
Here’s an insight from Adsterra experts: world economies classification is outdated. The post-pandemic world is being reshaped right now. With so many countries evolving, new technologies being implemented, we can’t stick to the same lists of the so-called “prosperous and non-prosperous countries,” right?
As an experienced affiliate, you will surely be interested in trend watching, and especially, in testing potent traffic sources. China, Singapore, India, and South Africa are among the most promising geos in terms of payouts and conversions.
We also notice a constant surge in demand for traffic and new offers appearing in these regions:
- Brazil
- The Philippines
- Singapore
- Portugal
- Turkey
- Indonesia
- Vietnam
African countries are demonstrating a huge shift in ad campaign efficiency. These geos have been among the most rewarding for the past two years:
- Kenya
- Nigeria
- South Africa
- Ghana
- Mozambique
To add more, new market niches are appearing right at this moment. For instance, eSports are taking over the hearts of sports fans around the world. Indeed, there are too many limitations to advertising such offers, but Adsterra’s Head of CPM is sure that eSports will soon occupy a significant niche in affiliate marketing.
Which tiers should affiliate marketers target?
It’s recommended to skill up in promoting all tiers to diversify income sources. For example, targeting Tier-1 countries may yield higher returns, but it’s also riskier because it requires more upfront capital. On the other hand, targeting geos from the 2nd and 3rd groups will offer more budget-friendly campaigns with lower conversion rates but will still provide some potential return on investment.
Do some research on each tier before launching a campaign in order to ensure that your offer is valuable and the conversion flow is feasible.
Examples:
- If you’re launching an mVAS (PIN Submit offer), you will face more regulations in Tier 1 countries than in other geos.
- Offers like Sweeps require lead form filling; in many countries, users are unlikely to input personal data.
- If you advertise an iGaming offer, pay attention to the deposit requirements; players from your geo should be able to deposit this amount.
Practical insights:
You’re not a Wikipedia to store every single detail about every tier. But basic experience comes with practice. Read more case studies about targeting various counties and grow your own knowledge! You can refer to media sources like Mobidea, forums like Afflift, or get hyper-focused affiliate case studies from your ad network.
Tier traffic FAQs:
1. Should I target Tier 1 traffic?
Tier 1 countries demonstrate higher acquisitional power, making them attractive for advertisers despite the challenges. Advertising in Tier 1 countries results in higher conversion rates and better ROI for ads. If you’re an advanced pro who knows how to optimize spend when targeting the US or Canada, you can focus on Tier 1 only. But why limit yourself to these highly competitive markets? Try running multi-geo offers, adding Tier 2 countries, and multiplying your revenues.
2. Which Tier traffic is best for beginners?
Many advertisers believe it’s beneficial to start their campaigns in Tier 1 countries due to the English-speaking population. However, Campaigns in Tier 1 countries may require more sophisticated management due to strict advertising regulations. We recommend Tier 2 countries or try Tier 3 traffic if you’re starting out as an affiliate. But what’s more important: choose offers with a simple conversion flow, like app installs or downloads. Avoid complex actions like cash on delivery or deposits.
3. Is Tier 3 traffic of poor quality?
In media and official World Bank’s reports, this group is considered to have a less developed economy. But you still can make money here. It’s not the traffic quality; it’s the offer applicability you should take into account. It’s vital to choose a reliable traffic source. Adsterra is a leading ad network with the best tier-3 traffic from the MENA region and Asia, along with the traditional Tier 1 countries.
4. How do Tier geos differ?
Tiers can be divided by several parameters: economy level; – legal framework and advertising regulations; – technologies and digital infrastructure (internet speed, mobile and tablet device usage, etc.) – languages – legal regulations and restrictions – cultural and behavior patterns – payment systems availability – interest in the product you advertise.
5. What are the best tiers?
The best tiers are those that deliver you relevant audiences at an affordable price. We at Adsterra advise you not to rely on basic classifications on public media but to build marketing based on your goals and experience. It often happens when you can get more traffic from, say, Latam, paying a lower cost, but the quality of conversions will be of the same level as with North America traffic.
6. What are the main challenges in advertising for Tier 1 audiences?
Advertisers in Tier 1 countries face stricter advertising regulations compared to those in lower-tier countries. Another challenge is intense competition: advertisers usually have to overbid to reach a desired CTR and CR rate. GDPR and legal restrictions are usually higher here, for example, iGaming regulations can limit your advertising freedom.
Recap
We’re done with visualizing the “tier traffic” landscape. The tier system usually consists of three categories: Tier 1, Tier 2, and Tier 3 countries. Knowing which tiers offer the highest potential for successful campaigns is essential, especially if affiliate marketing is your profession.
You can now decide without a hitch which tiers are most valuable for your ad strategy, whether you aim to get mobile & tablet or desktop traffic. There are no good or bad tiers if you learn all their pros and cons. What’s important is to have a proven traffic source, where you can purchase high-quality traffic from any tier.