Country Tiers in Digital Advertising
“Country Tiers” in the context of digital advertising often refer to the classification of countries based on various economic and advertising-related factors. The division into tiers is used by advertisers to strategize their ad campaigns, budgets, and target audiences.
Advertisers use these tiers as a way to strategize where to allocate budget and what kind of campaign strategies to deploy. For instance:
-
Testing New Campaigns: Some advertisers may test new campaigns in T2 or T3 countries where advertising is cheaper to gauge initial responses and engagement before rolling them out in more expensive T1 markets.
-
Localized Marketing: Advertisers can’t merely use the same strategy across all tiers. Local customs, purchasing behaviors, and language nuances all play a significant role, and campaigns often need to be localized.
-
Budget Allocation: If a company is looking for brand visibility and engagement at a lower cost, they might allocate a significant portion of their budget to T2 and T3 countries. Conversely, if they’re looking for high-value conversions and have a larger budget, T1 countries may be their primary focus.
Tier 1
Characteristics: Typically, these countries have a strong economy, high internet penetration, and a significant online purchasing power.
Advertising Implication: Higher Cost Per Click (CPC) and Cost Per Mille (CPM) due to strong competition, but potential for higher Return on Ad Spend (ROAS) due to larger purchasing power.
| ISO Code | Country Name |
|---|---|
| AT | Austria |
| AU | Australia |
| BE | Belgium |
| CA | Canada |
| CH | Switzerland |
| DE | Germany |
| DK | Denmark |
| ES | Spain |
| FI | Finland |
| FR | France |
| GB | United Kingdom |
| IE | Ireland |
| IT | Italy |
| JP | Japan |
| LU | Luxembourg |
| NL | Netherlands |
| NO | Norway |
| NZ | New Zealand |
| SE | Sweden |
| US | United States |
Tier 2
Characteristics: Emerging markets or economies with growing internet usage but not as economically strong as Tier 1. They offer a balance of potential growth and cost.
Advertising Implication: Moderate CPC and CPM. Advertisers target these regions for growth and to tap into emerging digital audiences.
| ISO Code | Country Name |
|---|---|
| AN | Andorra |
| AR | Argentina |
| BS | Bahamas |
| BY | Belarus |
| BR | Brazil |
| BO | Bolivia |
| BA | Bosnia and Herzegovina |
| BN | Brunei |
| BG | Bulgaria |
| CL | Chile |
| CN | China |
| CO | Colombia |
| CR | Costa Rica |
| HR | Croatia |
| CY | Cyprus |
| CZ | Czech Republic |
| DO | Dominican Republic |
| EC | Ecuador |
| EG | Egypt |
| EE | Estonia |
| FJ | Fiji |
| GR | Greece |
| GY | Guyana |
| HK | Hong Kong |
| HU | Hungary |
| IS | Iceland |
| ID | Indonesia |
| IL | Israel |
| KZ | Kazakhstan |
| LV | Latvia |
| LT | Lithuania |
| MO | Macau |
| MY | Malaysia |
| MT | Malta |
| MX | Mexico |
| ME | Montenegro |
| MA | Morocco |
| NP | Nepal |
| OM | Oman |
| PA | Panama |
| PY | Paraguay |
| PE | Peru |
| PH | Philippines |
| PL | Poland |
| PT | Portugal |
| PR | Puerto Rico |
| QA | Qatar |
| RO | Romania |
| RU | Russia |
| SA | Saudi Arabia |
| RS | Serbia |
| SG | Singapore |
| SK | Slovakia |
| SI | Slovenia |
| ZA | South Africa |
| KR | South Korea |
| TH | Thailand |
| TR | Turkey |
| UA | Ukraine |
| AE | United Arab Emirates |
| UY | Uruguay |
| VU | Vanuatu |
Tier 3
Characteristics: Often includes countries with lower internet penetration rates, less developed digital infrastructure, and lower average incomes.
Advertising Implication: Lowest CPC and CPM due to less competition, but potentially lower conversion rates or average order values.
| ISO Code | Country Name |
|---|---|
| AF | Afghanistan |
| AL | Albania |
| DZ | Algeria |
| AO | Angola |
| AM | Armenia |
| BH | Bahrain |
| BD | Bangladesh |
| BB | Barbados |
| BZ | Belize |
| BJ | Benin |
| BT | Bhutan |
| BW | Botswana |
| BF | Burkina Faso |
| BI | Burundi |
| KH | Cambodia |
| CM | Cameroon |
| CV | Cape Verde |
| CF | Central African Republic |
| TD | Chad |
| CG | Congo |
| KM | Comoros |
| CD | Democratic Republic of the Congo |
| DJ | Djibouti |
| SV | El Salvador |
| ET | Ethiopia |
| GA | Gabon |
| GE | Georgia |
| GT | Guatemala |
| GN | Guinea |
| GW | Guinea-Bissau |
| HT | Haiti |
| HN | Honduras |
| IN | India |
| IQ | Iraq |
| JM | Jamaica |
| JO | Jordan |
| KE | Kenya |
| KW | Kuwait |
| KG | Kyrgyzstan |
| LA | Laos PDR |
| LB | Lebanon |
| LR | Liberia |
| LS | Lesotho |
| MG | Madagascar |
| ML | Mali |
| MR | Mauritania |
| MU | Mauritius |
| MM | Myanmar (Burma) |
| MD | Moldova |
| MN | Mongolia |
| MZ | Mozambique |
| NA | Namibia |
| NI | Nicaragua |
| NE | Niger |
| NG | Nigeria |
| MK | North Macedonia |
| PK | Pakistan |
| PG | Papua New Guinea |
| RW | Rwanda |
| ST | São Tomé and Príncipe |
| SN | Senegal |
| SL | Sierra Leone |
| SO | Somalia |
| SS | South Sudan |
| LK | Sri Lanka |
| SR | Suriname |
| SZ | Eswatini (Swaziland) |
| TJ | Tajikistan |
| TZ | Tanzania |
| TL | Timor-Leste |
| TG | Togo |
| TN | Tunisia |
| TM | Turkmenistan |
| TT | Trinidad and Tobago |
| UG | Uganda |
| VI | U.S. Virgin Islands |
| UZ | Uzbekistan |
| VN | Vietnam |
| YE | Yemen |
| ZM | Zambia |
| ZW | Zimbabwe |