You lose your income if you don’t know what a GEO Tiers is. This directly affects your clicks, impressions and ROI. In this guide for affiliate marketers, we explained the difference between the three GEO Tiers, as well as described the nuances of working with it, provided a list of countries and the most suitable verticals for each of them.
If you’re just starting out in affiliate marketing, you might feel overwhelmed by the flood of new terms, strategies, and rules. One key concept to master early on is the classification of countries into “TIERS” – namely, Tier-1, Tier-2, and Tier-3.
You’re probably asking yourself: why are countries split into tiers, and how does this affect your choice of GEO for ad campaigns? Can you really run any offer in any country? Today, we’ll provide clear answers to these questions and more so you immediately understand what Tiers mean and how to use this classification in your work. Let’s dive in!
Before that, register with HilltopAds
and put your knowledge into practice.
What Are Tiers and Why Do They Matter?
Think of it like the World Cup draw, where national teams are grouped into different pots based on their strength, rankings, and stats. The goal is to keep the tournament balanced and exciting. In affiliate marketing, all countries are similarly divided into tiers based on economic and technological indicators: income levels, internet penetration, digital infrastructure, and so on. In short, the tiers break down like this:
Tier-1
Highly developed economies with high per-capita income, stable internet access, and significant online spending.
Tier-2
Rapidly growing markets where the middle class is embracing digital services and gradually increasing online spending.
Tier-3
Countries with limited infrastructure and lower income, but with considerable potential for long-term growth.
This Tier classification helps advertisers and affiliates target campaigns more precisely, predict traffic value, and manage budgets. Knowing the market characteristics and spending power of audiences in each tier lets you:
- Optimize your spending: Better calculate ROI and pick the most effective GEOs for your budget.
- Adapt creatives and offers: Tailor products and ad formats to match each market’s habits and purchasing power.
- Plan your scaling: Validate your offers first in lower-cost Tier-3 (or Tier-2) markets, then move into higher-value Tier-1 GEOs once performance is optimized.
Next, let’s look in detail at each tier and offer practical tips on choosing GEOs for your campaigns.
TIER-1
🇦🇺 Australia | 🇫🇮 Finland | 🇳🇱 Netherlands | 🇪🇸 Spain |
🇦🇹 Austria | 🇫🇷 France | 🇳🇿 New Zealand | 🇸🇪 Sweden |
🇧🇪 Belgium | 🇩🇪 Germany | 🇳🇴 Norway | 🇨🇭 Switzerland |
🇨🇦 Canada | 🇮🇸 Iceland | 🇵🇱 Poland | 🇬🇧 United Kingdom |
🇨🇿 Czech Republic | 🇮🇪 Ireland | 🇵🇹 Portugal | 🇺🇸 United States |
🇩🇰 Denmark | 🇮🇹 Italy | 🇸🇮 Slovenia |
Tier-1 countries include markets like Australia, the United States, Canada, the UK, Germany, France, and other highly developed economies. What these countries have in common is very high purchasing power and active online lifestyles – users here spend money on the internet readily. For affiliates, this means maximum return on ad spend, so Tier-1 markets are always top priority.
Top Niches in Tier-1 Markets
In these affluent regions, premium offers and complex products/services tend to perform best:
Finance & Investing
Reward credit cards, brokerage platforms, and crypto or P2P investment services attract audiences with high financial literacy and a willingness to pay for reliability.
Premium eCommerce
Fashion, electronics, and subscription box services (e.g. beauty boxes) where customers spend tens or hundreds of dollars per item.
SaaS & Business Software
Automation tools, CRM systems, and cloud solutions are typically sold as subscriptions; their high lifetime value justifies spending on costly traffic.
Premium Dating Services
Paid dating platforms with advanced features (video chats, personal matchmaking) convert well in countries with a strong online dating culture.
Gaming Subscriptions
Digital subscriptions for AAA games (Xbox Game Pass, PlayStation Plus, etc.) – Tier-1 audiences always seek high-quality entertainment.
Online Education & Upskilling
Professional courses and certifications (IT, marketing, design) where ROI is measured in user lifetime value rather than quick clicks.
Health & Wellness Premium
High-end supplements, specialized vitamins, fitness app subscriptions, and telemedicine – the health trend is one of the most enduring.
Luxury Travel & Tourism
Airline tickets, 5★ hotels, exclusive tour packages – Tier-1 audiences are willing to invest in unique experiences.
Digital Subscriptions & Gamification
Premium app subscriptions and interactive content (music/video streaming) where the audience values quality and exclusivity.
Advantages of Tier-1 Countries:
Very high profitability
Users have the means to spend on premium offers, so ROI per conversion is often the highest.
English-speaking audiences
Most users in Tier-1 markets speak English, which simplifies campaign setup.
Note: local languages still matter. For example, if you target Germany or France, running campaigns in German or French will yield much better results.
Abundant traffic sources
A wide range of high-quality traffic sources is available.
The population in Tier-1 countries tends to have high financial literacy and income: many own iPhones or flagship Androids. However, remember that even wealthy countries have lower-income segments. So there’s also demand for games, education, and low-ticket items – you can’t ignore those niches entirely.
Challenges of Tier-1 Markets:
High competition and cost
Advertising in Tier-1 requires substantial budgets and careful resource allocation due to intense rivalry for premium audiences.
Strict regulations
Many Tier-1 countries have strict advertising laws and policies (GDPR in Europe, ASA in the UK, FTC in the US, etc.). Ensuring compliance is crucial to avoid bans or penalties.
TIER-2
🇦🇱 Albania | 🇧🇬 Bulgaria | 🇭🇺 Hungary | 🇲🇩 Moldova | 🇸🇰 Slovakia |
🇦🇩 Andorra | 🇭🇷 Croatia | 🇯🇵 Japan | 🇲🇪 Montenegro | 🇰🇷 South Korea |
🇦🇷 Argentina | 🇨🇾 Cyprus | 🇱🇻 Latvia | 🇷🇴 Romania | 🇹🇷 Turkey |
🇧🇾 Belarus | 🇪🇪 Estonia | 🇱🇹 Lithuania | 🇷🇺 Russian Federation | 🇺🇦 Ukraine |
🇧🇦 Bosnia and Herzegovina | 🇬🇷 Greece | 🇲🇰 Macedonia | 🇷🇸 Serbia | 🇦🇪 United Arab Emirates |
🇧🇷 Brazil | 🇭🇰 Hong Kong | 🇲🇹 Malta | 🇸🇬 Singapore |
Tier-2 countries include markets such as Andorra, Cyprus, Malta, Brazil, Argentina, Turkey, Ukraine, South Korea, and others. In fact, Tier-2 is the largest group in affiliate marketing. These regions have lower overall income levels and online activity than Tier-1, but they come with their own advantages:
Growing purchasing power
A strong and expanding middle class is actively adopting online shopping and services. Consumer spending is on the rise.
Plenty of traffic at a lower cost
Click costs are generally lower and competition is more moderate, allowing marketers to test campaigns with reduced risk.
Stability and openness
Many Tier-2 markets are politically and economically stable with open markets and support for e-commerce, which helps digital offers thrive.
Widespread English proficiency
A large portion of the population speaks English as a second language, simplifying the launch of international campaigns.
However, Tier-2 markets also require special attention:
Localization needed
To get the best response, you should adapt creatives and landing pages to the local language and culture.
Lower profit margins
Average order values and conversion rates tend to be below Tier-1 levels, so it’s important to use optimization tools and careful targeting to maintain profitability.
Top Niches in Tier-2 Markets:
E-commerce & Finance
Growing urban markets are embracing online retail and financial services (credit cards, personal loans, etc.).
Cybersecurity & VPN
There is a rising demand for antivirus software, VPNs, and tools to bypass local censorship.
Software & Utilities
Users in developing markets often purchase paid apps and utilities to improve their digital experience (e.g. phone apps, PC/Mac software).
Sweepstakes, Giveaways & Dating
Contests with prizes, free giveaways, and dating offers tend to convert well, as users are less saturated with ads and enjoy the excitement.
Health & Beauty
Products and supplements often sell well, especially in regions with strong traditions of natural medicine and local wellness brands.
Work with any Tier GEO with HilltopAds
to maximize your profits.
TIER-3
🇩🇿 Algeria | 🇹🇩 Chad | 🇭🇳 Honduras | 🇲🇳 Mongolia | 🇿🇦 South Africa |
🇦🇴 Angola | 🇨🇱 Chile | 🇮🇳 India | 🇲🇦 Morocco | 🇱🇰 Sri Lanka |
🇦🇲 Armenia | 🇨🇳 China | 🇮🇩 Indonesia | 🇲🇿 Mozambique | 🇸🇷 Suriname |
🇦🇿 Azerbaijan | 🇨🇴 Colombia | 🇮🇶 Iraq | 🇳🇦 Namibia | 🇸🇿 Swaziland |
🇧🇭 Bahrain | 🇰🇲 Comoros | 🇮🇱 Israel | 🇳🇵 Nepal | 🇹🇯 Tajikistan |
🇧🇩 Bangladesh | 🇨🇩 Congo | 🇯🇲Jamaica | 🇳🇮 Nicaragua | 🇹🇿 Tanzania |
🇧🇧 Barbados | 🇨🇷 Costa rica | 🇯🇴 Jordan | 🇳🇬 Nigeria | 🇹🇭 Thailand |
🇧🇿 Belize | 🇩🇴 Dominican Republic | 🇰🇿 Kazakhstan | 🇴🇲 Oman | 🇹🇬 Togo |
🇧🇯 Benin | 🇪🇨 Ecuador | 🇰🇪 Kenya | 🇵🇰 Pakistan | 🇹🇹 Trinidad and Tobago |
🇧🇴 Bolivia | 🇪🇬 Egypt | 🇰🇼 Kuwait | 🇵🇦 Panama | 🇹🇳 Tunisia |
🇧🇼 Botswana | 🇸🇻 El salvador | 🇰🇬 Kyrgyzstan | 🇵🇾 Paraguay | 🇹🇲 Turkmenistan |
🇧🇳 Brunei Darussalam | 🇪🇹 Ethiopia | 🇱🇦 Lao people’s Democratic Republic | 🇵🇪 Peru | 🇺🇬 Uganda |
🇧🇫 Burkina Faso | 🇬🇦 Gabon | 🇲🇬 Madagascar | 🇵🇭 Philippines | 🇺🇾 Uruguay |
🇧🇮 Burundi | 🇬🇪 Georgia | 🇲🇾 Malaysia | 🇵🇷 Puerto Rico | 🇺🇿 Uzbekistan |
🇰🇭 Cambodia | 🇬🇹 Guatemala | 🇲🇱 Mali | 🇶🇦 Qatar | 🇻🇳 Vietnam |
🇨🇲 Cameroon | 🇬🇼 Guinea | 🇲🇷 Mauritania | 🇸🇦 Saudi Arabia | 🇿🇲 Zambia |
🇨🇻 Cape verde | 🇭🇹 Haiti | 🇲🇽 Mexico | 🇸🇳 Senegal |
Tier-3 countries include markets like India, Nigeria, Vietnam, Sri Lanka, Iraq, Uganda, and others. These regions are known for cheap but high-volume traffic and audiences that are not yet accustomed to online shopping. While payouts per action are usually lower here, you can often make up for it with scale and strong conversion rates.
Key Traits of Tier-3 Markets:
Affordable traffic, low competition
offers can be tested here with minimal investment.
“Evergreen” creatives
Ads and campaigns that worked in Tier-1/2 a few years ago often still produce results in Tier-3. You can repurpose older materials.
Language barriers
Professional localization and proofreading are essential so that your ads and pages sound natural and avoid translation mistakes.
Cultural and legal restrictions
Many offers (especially in health, gambling, or dating) may be irrelevant or prohibited due to local norms, so always check local laws and sensitivities.
Tier-3 is often a “training ground” for newcomers: it allows you to refine strategies without risking huge budgets and to validate basic funnels before adding complex automation.
Top Niches in Tier-3 Markets:
Mobile Subscriptions & mVAS
Pay-per-SMS services (ringtones, wallpapers, simple entertainment content) and mobile app subscriptions convert well due to the ease of mobile access.
Sweepstakes & Giveaways
Prize contests and lotteries draw attention from audiences who are more enticed by rewards.
Casinos & Lotteries
Simple gambling offers with demo versions and low minimum bets can work even in lower-income regions.
Educational Materials
Affordable courses to learn languages, computer skills, or professional trades – a low price and clear value proposition make these attractive.
Micro-Ecommerce
Small-ticket items and everyday products sold through local e-commerce channels, often with healthy margins.
Use Tier-3 as a sandbox to test hypotheses and then scale successful models to pricier GEOs. Here, simplicity rules: keep offers straightforward, localize carefully, and always respect cultural specifics.
How to Start Working with Tier-1 Countries
Getting started in Tier-1 GEOs requires careful setup. Follow these steps:
- Set up robust tracking: Assign a unique postback URL to each traffic source, and use separate subdomains for your landing pages. This way you can quickly identify underperforming channels and fix leaks in your funnel.
- Test your creatives: Never run the same ad assets worldwide. Conduct A/B tests with English and localized banners or creatives. Factor in regional slang and cultural nuances. This will show you exactly where CTRs and conversions are highest.
- Control your budgets: Set daily campaign budget limits right from the start to manage your spend. Don’t let costly traffic spiral out of control.
- Ensure compliance and build trust: Check all your text and offers against regulations (GDPR in Europe, ASA in the UK, FTC in the US, etc.) before you launch. Include trust signals on your landing pages – such as industry certifications, user reviews, and payment system logos – to bolster credibility.
- Use high-converting ad formats: Choose formats known to work well in Tier-1 (for example, popunder ads, push notifications, or high-quality native content). Match your format to the audience’s expectations.
Following these practices will give you a clear understanding of where your campaign performs best and help you optimize from day one.
Should You Focus Only on Tier-1?
While Tier-1 markets are very attractive, don’t limit yourself to them. To maximize your results, diversify your campaigns across Tier-2 and Tier-3 as well. Here’s why:
- Cheap, plentiful traffic: Tier-2 and Tier-3 offer huge volumes of traffic at a fraction of the cost. This lets you run more split-tests and gather valuable data on audience reactions to your creatives.
- Unique vertical opportunities: Many verticals that are regulated or closed in Tier-1 (like certain dating offers, sweepstakes, or local gambling) can often be promoted in Tier-2/3 with fewer restrictions – potentially boosting your profits.
- Lower competition: Less competition and smaller budgets in these markets can make it easier to maintain profitability, especially with smart optimizations.
- High-growth “hidden gems”: Undervalued markets such as Egypt, Thailand, Vietnam, Nigeria, Saudi Arabia, India, and Indonesia have massive populations and rapidly growing internet adoption. These regions can become true “gold mines” for e-commerce and online services as they continue to develop.
In short, an all-Tier-1 strategy may yield returns, but a diversified approach that includes Tier-2 and Tier-3 will unlock many more opportunities.
Why HilltopAds is the Optimal Choice for Any GEO
The HilltopAds ad network combines flexibility with powerful functionality, making it easy to work across Tier-1, Tier-2, and Tier-3 markets:
Global Reach
With coverage in over 200 countries and regions and hundreds of traffic sources (popunder, push, in-page, etc.), you can find the most profitable ad formats and settings for any GEO.
Auto-Bid Optimization
HilltopAds analyzes your campaign data and automatically suggests optimal bids for each traffic source. You simply confirm the recommendations and watch your performance improve.
Deep Analytics
Detailed statistics for every click, GEO, device, and offer give you complete insight into campaign performance and help you refine your strategy on the fly.
24/7 Support
An expert team is available around the clock – from helping with tracking setup to advising on the most profitable verticals for your target GEO.
Register with HilltopAds and launch your first campaign today! With the right tools and strategies, you’ll be conquering Tier-1, Tier-2, and Tier-3 markets in no time.