Hello, community! Today, we continue to explore the topic of choosing GEOs for advertising campaigns. This tool is one of the key elements in setting up advertising, so you must clearly understand how to work with it to achieve the desired results.
Last week, we already discussed the criteria you need to follow and what to pay attention to in order to accurately choose the target region for an offer. If you haven’t read our previous article, we strongly recommend starting with it: why is it important to be able to choose GEOs?
Also, check out the affiliate section, where you can find detailed reviews of the best affiliate programs in various niches and start profitably promoting in top GEOs.
We hope the previous article made it clear that choosing GEOs is indeed an important element in traffic arbitrage and it’s worth diving deep into it to avoid wasting advertising funds.
Agree that it’s always necessary to have a certain system in work to make the choice easier. For this, in the arbitrage world, countries were divided into 4 conditional zones — tiers.
The choice of zone depends on the vertical and offer you’ve chosen for promotion. For instance, offers requiring high online user activity and stable internet connection best enter countries with a high level of digital development. Often there are offers that can convert well in several GEOs. However, don’t forget that identifying the best connections requires testing different approaches.
WHAT CRITERIA ARE COUNTRIES DIVIDED INTO ZONES (TIER)?
These criteria coincide with the GEO selection factors we’ve already discussed in the previous article. And here are the most important ones.
Standard of living. It’s no secret that the purchasing power of users directly depends on the general standard of living in a particular country. The standard of living also influences the interests of users and their willingness to spend money on various groups of goods and services. If all the basic needs of the residents are covered, they can pay attention to less necessary things that bring pleasure.
Online payment for goods. Logically, when promoting various goods and services, you are most interested in those users who can make purchases online. This is directly influenced by the level of technological progress of the chosen GEO.
Political situation. It affects the market stability and the purchasing power of residents. Political decisions also trigger economic changes and currency fluctuations.
Sometimes a country experiences active changes and transitions from one zone to another and vice versa. Therefore, it’s necessary to keep track of the situation and continuously analyze new information regarding the chosen GEOs.
MORE ABOUT TIER 1,2,3,4
Now, let’s look at each of these 4 zones: tier 1, tier 2, tier 3, tier 4.
Tier 1. These are top GEOs with a high level of economic development. For example, the USA, Canada, Australia and New Zealand, as well as most European Union countries. Payments for such offers are high, but so is the traffic cost. And promoting in these GEOs is difficult due to high competition among arbitrators.
Also, creative content must be meticulously prepared, as audiences in such countries are more educated and thus more demanding of advertising quality and the goods themselves. The legal system responds harshly to poor-quality advertising, so experience is indispensable.
Tier 2. The second zone in terms of purchasing power. It includes post-Soviet European countries, part of the EU, and top countries in Asia and the East. For promotion in these countries, quality creatives and maximum effort are necessary if it’s an unknown product or service. Therefore, it’s better to promote well-known brands if possible. This zone has simpler legal regulations and fewer blocks. Due to lower payouts, competition among webmasters is correspondingly not high.
Tier 3. A rather extensive zone with low purchasing power. It includes those countries in America, Asia, and Africa where the economic level is low. There is a problem with technological development, so not all users are ready and able to buy online. Traffic to these countries is cheap, but creative adaptation to the language of the GEO is required. Although payouts are significantly lower, it’s a good and safest option for beginner webmasters.
Tier 4. A zone with countries where the internal political situation is unstable. Like Afghanistan, Cuba, Kuwait, Syria, etc. Arbitrators usually try to avoid these countries.
ANY NUANCES?
Yes, what would it be without them? Perhaps, having read information about all 4 zones, you’ve already made up your mind: “Let’s promote in tier 1, it’s so profitable and maximally logical. Why do other webmasters choose unclear countries from other zones and struggle?”
Oh, dear arbitrators. If you’re just starting your journey, we want to explain this situation right away. Indeed, the higher the tier, the larger the payouts you can receive for promotion.
BUT: other webmasters also want to promote less and earn more. That’s why competition in tier 1 is extremely high and it will be very difficult for a newbie to break through with their traffic and creatives against professionals. Moreover, it’s unlikely that a solo newbie has large budgets for tests and promotion because traffic in tier 1 is the most expensive. And one more problem: strict rules. If you don’t understand all the requirements in detail, you can catch a ban and forget about your profitable offers.
Therefore, we advise starting with countries in tier 3, as this zone is the safest, though not the most profitable.
SUMMARY
We hope this information was useful for you and another important element was added to the huge arbitrage puzzle in your head. Be sure to study the specifics of each country before promoting in it. Without analyzing the chosen GEO, you’re unlikely to prepare relevant creatives that will fly well and bring you a good conversion.
Don’t try to cover only top GEOs. Especially if you don’t have much experience in arbitrage. Often, even countries from tier 3 bring good results. Everything depends on the settings of your advertising campaign. Test different approaches and you will get the desired profit.
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Best regards, Your Geek!
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