Tier 1 Countries in Affiliate Marketing

Tier 1 countries represent the pinnacle of the global economy, characterized by advanced infrastructure, high living standards, and substantial purchasing power. It’s no surprise that newcomers to arbitrage (Affiliate Marketing) often gravitate towards these countries, as they are highly desirable for arbitrageurs(affiliates). While competition is fierce in these regions, they also boast the most solvent, active audiences and the most lucrative payouts. In this article, we’ll delve into the most profitable segment of the arbitrage market(Affiliate Marketing). You’ll learn all about Tier 1 countries, their specific characteristics, optimal times for targeting them, and the most effective verticals to explore.

Understanding Tier 1: Countries and Characteristics

It’s important to note that this tier classification is somewhat subjective, and the list of countries within it can fluctuate. Countries like Estonia, Poland, Lithuania, and the Dominican Republic frequently transition between Tier 1 and Tier 2. China, due to its vast size, presents even more complexities in terms of regional categorization. However, for arbitrageurs(affiliates), this isn’t a critical factor. The key is to avoid countries experiencing economic or political turmoil, as these factors can significantly impact the population’s spending power. Additionally, it’s essential to steer clear of geos where offers are unsuitable due to religious beliefs, legal restrictions, or simply a lack of familiarity among users.

Tier 1 countries boast a higher proportion of affluent individuals compared to poorer nations. Advanced technologies penetrate these regions more rapidly, granting the population access to all the digital conveniences of modern civilization. According to the World Bank, the combined GDP of Tier 1 countries accounts for nearly a third of the global economy. Let’s examine some of the key countries within this tier:

• United States: The largest and most lucrative market, characterized by high income and consumption levels. As of 2024, GDP per capita in the US stands at $83,060.
• Canada: A country with a stable economy and a high standard of living. GDP per capita reaches $55,530.
• United Kingdom: The leading European country with substantial online advertising spending, currently ranking 6th among the wealthiest nations. GDP per capita is approximately $52,430.
• Australia: A stable market with high per capita income and a GDP of $53,000.
• New Zealand: A rapidly growing market with favorable consumption rates and a GDP per capita of around $42,000.
• Germany: Europe’s most developed economy with significant spending on digital advertising (over €10 billion). GDP per capita in 2024 is $56,040.
• France: One of Europe’s market leaders with a high income, GDP per capita of $48,220, and digital ad spending exceeding €8 billion.
• Switzerland: A high-income geo with global ad spending. GDP per capita is approximately $83,000.
• Japan: A leading Asian market with a high level of digitalization and a GDP per capita of $34,550.
• Scandinavian Countries (Norway, Sweden, Denmark, Finland): These countries have high income levels and developed infrastructure. GDP per capita is approximately:
  • Norway: $75,000
  • Sweden: $52,000
  • Denmark: $61,000
  • Finland: $50,000
• Czech Republic: An emerging market with promising consumption figures and a growing digital advertising market. GDP per capita is around $23,000.
• Italy: A stable European market with high ad spending. GDP per capita is $38,930, and digital ad spending in 2023 exceeded €3 billion.
• Iceland: A small but stable market with high revenue. GDP per capita is $70,000. Iceland attracts advertisers due to its high standard of living and deep digitalization.
• Ireland: A growing market with high income levels and a GDP per capita of approximately $104,000. The Irish digital advertising market is also experiencing significant growth.
• Slovenia: An emerging market with favorable consumption rates and a GDP per capita of around $27,000. The digital advertising market in Slovenia is rapidly expanding.
• Netherlands: A European market leader with high income levels and a GDP per capita of around $52,000. Digital advertising spending in the Netherlands exceeded €2 billion in 2023.

Recent data indicates that digital ad spending in Canada and the United States is projected to reach $328 billion in 2024, accounting for 40% of the global total. In Western Europe, ad spend is expected to grow to $141 billion.

Key Characteristics of Tier 1 Geos

Since Tier 1 countries possess stable economies, high living standards, and expensive traffic, they naturally command higher rates. These regions predominantly attract affluent individuals with reliable access to high-speed internet and various online payment methods. They are familiar with brands and are more inclined to spend money on entertainment and personal needs.

Several key characteristics unite all Tier 1 countries, forming a foundation for successful arbitrage(Affiliate Marketing) in various verticals, which we’ll discuss later. For now, let’s explore the advantages of working with these geos.

Benefits of Traffic Arbitrage(Affiliate Marketing) in Tier 1 Countries

• Wide Range of Verticals: Tier 1 countries are suitable for almost all top verticals, including high-margin ones. With the right approach, arbitrageurs(affiliates) can succeed with various bundles.
• High Engagement: Tier 1 audiences are highly active in interacting with advertising materials and are more likely to make purchases.
• Diversity of Traffic Sources: Developed countries offer a multitude of relevant traffic sources, including newer channels like podcasts and streaming platforms.
• High Paying Capacity: Individuals in Tier 1 countries are more willing to spend money on online shopping and tend to make spontaneous purchases, with significantly higher average order values compared to other regions.
• Higher Offer Rates: Advertisers are willing to pay more for quality traffic. Attractive rates enable affiliates to earn substantial profits.
• Vast and Diverse Audience: Developed countries are home to people with diverse interests and needs, allowing you to target a wide range of offers.
• High Level of Technology Penetration: Advanced infrastructure and modern technologies in Tier 1 countries facilitate traffic arbitrage(Affiliate Marketing).
• Access to Online Payment Systems: All popular online payment methods are readily available in these countries, eliminating any conversion barriers.
• High Internet Penetration: Tier 1 countries generally have no issues with internet coverage or access to the global network (for example, 96% of the UK population has internet access). This ensures that users can view product advertisements and make online purchases.
• Relevance of “Expensive” Offers: Individuals from developed countries appreciate quality and luxury items, combined with their higher paying capacity, making them ideal for promoting premium products.

Challenges of Working with Tier 1 in Affiliate Marketing

If you plan to target Tier 1 audiences, be prepared for certain challenges that can make arbitrage (Affiliate Marketing) in these regions more demanding:

• Many individuals in Tier 1 countries have college degrees, making it easier to persuade them to buy a car than to convince them to lose weight.
• Tier 1 geos often have more discerning audiences accustomed to high standards. This can complicate creative efforts, as it’s not always easy to convince users of the benefits of a product, especially if they are not immediately apparent.
• Intense competition awaits affiliates in Tier 1 countries. It can be challenging, especially for newcomers, to compete against more experienced and skilled competitors. To stand out, webmasters need to employ smart strategies and personalized creatives.
• While English is dominant in many Tier 1 countries, it’s important to consider language nuances. For example, in Canada, using both English and French is advisable, while in the US, language selection may depend on the specific state.
• Traffic from Tier 1 countries is the most expensive, requiring a substantial budget to work with.
• Tier 1 countries often have stricter advertising regulations, and some verticals may be prohibited. It’s essential to understand where it’s reasonable to circumvent restrictions and where the risks outweigh the potential rewards. In general, when targeting a Tier 1 geo, be prepared for advertisers and websites to have high expectations for traffic quality and adherence to rules.

Frequently Asked Questions about Tier 1 and Choosing the Best Geo

What are the top Tier 1 geos for the Dating vertical?

The US market remains the largest and most attractive for arbitrageurs(affiliates) working in the online dating vertical. However, this also means facing high competition and advertising costs.

The Canadian audience converts well with dating offers. It’s worth considering Canada as a growing market with a high income level and an active audience.

The UK and Germany have a significant amount of dating traffic, making them stable markets with high conversion rates and a large user base interested in long-term relationships. Australia also demonstrates good engagement, with dating apps and premium dating services being popular.

In general, online dating is a consistently relevant vertical everywhere. The key lies in finding your target audience and the right approach. Tier 1 countries offer a vast and diverse audience, increasing the chances of success for all.

What are the top Tier 1 geos for the Mainstream vertical?

For the mainstream vertical, the most promising geographies remain the USA, Canada, the UK, Germany and Australia. There is a loyal audience here, premium goods are popular, and quality is particularly valued. By the way, Germany has a rather pragmatic approach to shopping, with goods for home and family in demand.

What are the top Tier 1 geos in the iGaming vertical?

The iGaming vertical is not the easiest to promote due to bans and restrictions from the legislation. But the list of countries where betting shops and online casinos are legalized continues to expand, and arbitrageurs are in a hurry to “skim the cream” from new audiences. The UK is one of the largest iGaming markets with legalization and regulation. Sweden, Germany and Canada have a loyal attitude to gambling, mobile platforms are in demand, there is a high level of engagement in online gambling and sports betting is popular. Germans are not too gambling, but after a couple of beers they will gladly test their luck. Offline casinos in Germany are completely legal, and online gambling is banned, but that doesn’t stop players, and certainly not advertisers.

By the way, the other day the International Olympic Committee decided that in 2025 for the first time in the world will be held Olympic cyber sports games and even supported the candidacy of the country that will host them for the first time.Gamers are already actively preparing, and arbitrageurs are rubbing their hands in anticipation of fiery profits.

Comparing Tier 1 eCPMs across different verticals

You can estimate the approximate spillage revenue in a particular geo using eCPM metrics. Let’s compare these metrics by key verticals using Lospollos statistics. By the way, on our platform the actual top is published weekly. Note that in Lospollos the average eCPM is higher than the market average, because our smartlinks convert any kind of traffic perfectly 🙂 .
To date, the ranking of geos by eCPM in the Dating-vertical has formed this way:

In Mainstream-vertical the highest eCPM is shown by such geos:

High eCPM in iGaming-vertical is due to the high cost of attracting new players. For example, in the UK, the eCPM for the online gaming vertical for adult audiences is currently $40.

Keep in mind that eCPM can vary significantly depending on the specific offerer, traffic source and other factors.

Conclusions and afterword

High raites and quality traffic in Tier 1 is not a myth, it is really cool and profitable to work with Tier 1. But not everyone is ready to step through competitors, surprise the sophisticated audience and splurge on expensive traffic.
Traffic arbitrage in Tier 1 countries is a big risk. However, the right marketing strategy and adapting advertising content to the cultural peculiarities of the geo will not let you go under. Study the market thoroughly, choose your niche and strategy, analyze, and then you will have every chance of success.