Three Tier Levels in Arbitrage: Which Geo to Choose for Successful Work?

Three Tier Levels in Arbitrage: Which Geo to Choose for Successful Work?

The choice of geo for traffic acquisition in the gambling vertical is an important step towards the successful realization of an advertising campaign and making a high profit. In Internet marketing, countries of the world fall into three Tier levels. In order to promote offers efficiently in different markets, it is essential to understand the subtleties of each geo category.

So what is Tier? What are the main differences between Tier 1, 2 and 3? Read about all of it in our article.

What is Tier: general notion

Tier is a geographical category that includes certain countries sorted by definite criteria. Roughly speaking, all countries fall into three categories: Tier 1, Tier 2 and Tier 3. This classification allows arbitragers to set the direction of the advertising campaign faster.

Tier 1, 2, 3: key features

Classification of geos relies on the size of the country, its economic development, income per capita, paying capacity of population, ethnic composition and other attributes, but does not depend on geographical location or language.

  • Tier 1 – the most developed, richest, and highest competitive geos. The highest incomes and high cost of traffic. Arbitragers are eager to work with these countries.
  • Tier 2 – relatively less competitive geos. Countries where population has lower average incomes. The income of arbitragers that work with such geos varies. The traffic cost is average.
  • Tier 3 – developing countries where population has low buying capacity. Much cheap traffic and the income is usually lower.

It should be noted that the Tier classification is mainly based on the experience of the arbitrager. Some of them even identify intermediate categories. In addition, countries can move from one category to another.

What is Tier

The top converting geos 2020

According to arbitrage experts, the following geos generate the highest incomes in 2020:

  • Tier 1: the USA, Australia, Germany, Italy, France, Spain;
  • Tier 2: the Czech Republic, Ukraine, Russia, Kazakhstan.

Tier 1: specifics of work

Tier 1 category includes the richest and the most in-demand geos among arbitragers. Some of them are Australia, Austria, Belgium, England, Ireland, New Zealand, Norway, France, Sweden, Canada, Luxembourg, etc.

Tier 1 countries have highly developed infrastructure, high personal income, and wide opportunities for online payments. Tier 1 traffic is the most expensive and valuable. Efficient advertising brings higher revenue here.

At the same time, the competition is tough. The reason is that affiliate marketing has been deployed in developed countries for a long time and the market is saturated with experienced specialists with their characteristic schemes of work. For the same reason, it is very difficult to impress local citizens with ordinary creatives and they know how to block or ignore ads.

When acquiring traffic in Tier 1 countries, it is important to take into account the peculiarities of local legislation. Such geos usually have rather high requirements to advertising including in the gambling field.

Besides, in the process of promoting goods and services in highly developed markets, one needs not to forget about the relevancy of offers for each specific audience and the use of correct language. The latter especially relates to the European countries. Not every German or Frenchman knows English.

Key features of Tier 1:

  • people easily spend money on the Internet if they are interested in the offer;
  • high purchasing capacity;
  • fast adoption of high-end technologies;
  • finicky audience;
  • complicated regulation;
  • tough competition;
  • high CPC and CPM.

Tier 2: specifics of work

Tier 1, 2, 3: key features

As a rule, the second category covers less developed countries. By some characteristics, they belong to Tier 1 rather than the third geo level. Some of them are Portugal, Bulgaria, Estonia, Kazakhstan, Turkey, Vietnam, Ukraine, etc.

The main distinctive feature of Tier 2 is that population is rather well off here but is not surfeited with various advertising unlike Tier 1 countries. Besides, such geos have wide opportunities for online payments.

Traffic cost is lower in Tier 2 countries when we are talking about such highly competitive niche as gambling. Such geos are the best option for beginners in the arbitrage field. Promotion of offers in these markets allows accumulating experience without substantial investments.

Regulation depends on a specific country. Besides, one should take into account language peculiarities and supply ads in the language that people can understand. The best idea is to get them translated by professionals and not Google Translate.

Key features of Tier 2:

  • moderate pace of technology adoption;
  • mild regulation;
  • small competition;
  • average CPC or CPM;
  • localization and knowledge of language is required;
  • fewer payment options than in Tier 1.

Tier 3: specifics of work

Tier 3 unites the least developed countries of the world: Algeria, Bangladesh, Cambodia, Libya, Saudi Arabia, etc.

Payouts are small in such geos. However, running advertising campaigns in these countries allows making income due to big traffic volumes. There is little or no advertising regulation in Tier 3 countries. Here the audience has low paying capacity; income per capita is also low. Nevertheless, these conditions are the best for training and acquiring practical skills in affiliate marketing.

Despite the fact that Tier 3 geos may seem an easy game, they still require significant efforts to adapt ads to the language of the chosen country. Besides, to work efficiently, an arbitrager should understand the peculiarities of local culture and traditions to use this information while promoting offers among the target audience. Furthermore, one should factor in that payment services are usually of low quality in the countries of the third category.

Key features of Tier 3:

  • cheap traffic;
  • almost no competition;
  • low CPC and CPM;
  • nominal regulation;
  • poor purchasing capacity of population;
  • well-thought-out localization is required;
  • low pace of technology adoption.

 что учитывать при работе с разными гео

Is it worth acquiring traffic in Tier 4 countries?

This category covers all the countries not included in Tier 3. They are usually very small or characterized by unstable political situation. Arbitragers most often avoid such geos, because working with the audience of these countries does not bring high profit and can entail serious legal and financial penalties.

Tier 4 includes such countries as Afghanistan, Iran, Cuba, Mauritania, North Korea, Syria, Chad, etc.

Launching ads: what to take into account when working with different geos?

Before you start driving traffic from a certain country, carefully study all the peculiarities of this territory. It is necessary to assess the mentality, interests, needs of the population, etc. You should take into consideration that even residents of neighboring countries might have completely different opportunities and preferences. Therefore, for the promotion of offers, among others, in the gambling niche to bring the arbitrager high profit, the advertising campaign should be adapted to each specific market.

More information about subtleties of traffic monetization and efficient promotion tools for gambling offers will be presented at Kyiv iGaming Affiliate Conference 2020. The event will take place on November 4.

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