Comparison of Tier 1, Tier 2 and Tier 3 Countries - Which Tier is Better for iGaming Business

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8 min
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Oct 30, 2024

Despite the extremely high level of competition, the iGaming sector is still a very attractive place to do business. Today, many are considering launching their own betting or online casino platform. In addition, there are affiliate marketers who see iGaming as an excellent source of passive income provided through the promotion of gambling/betting products. However, the question is, in which countries will these products be most in demand? 

Based on the value of digital advertising, we can distinguish several groups of countries. Many marketers apply ‘Tier’ to them thus emphasizing the average income level of the population in different countries worldwide. How can Tier 1 traffic be more valuable than that received from Tier 3 countries? Which tiers should be targeted when promoting iGaming products as an affiliate? This article gives answers to all these and many other questions concerning the promotion of iGaming offers. 

Things to Know About Tiers and Segmentation Features

You have probably cheered for your country's national football team in the World Cup. Have you ever wondered how countries are selected for the group stage of this popular competition? The organisers rank the teams (countries) from best to worst, taking into account a variety of factors including overall strength as well as the individual qualities of athletes. Eventually, the teams are divided into groups (tiers) to make the football event even more entertaining for the fans. 

Digital marketing uses much the same principle, organising the world's countries according to economic factors such as average income. According to this concept, economically developed countries with high wages correspond to Tier 1, while less economically developed countries may fall into Tier 2 or Tier 3. Consequently, marketers have access to lists of countries ranked by disposable income. Developed countries are much more likely to convert from advertising. However, let's take a closer look at these tiers. 

Tier 1 Countries

Among all countries in the world, Tier 1 is the most in demand by digital marketers including even those promoting iGaming offers even though this vertical is quite sensitive. The main reason is the high purchasing power of people in the USA, Canada, Australia and some other countries belonging to this tier. For example, in Germany, the average annual wage was about $62,500 in 2023 according to Statista. With a high standard of living, developed infrastructure and mature markets, Tier 1 countries are the number one choice for affiliates. So let's take a look at the key factors that make Tier 1 countries so attractive:

·  Due to high income levels, locals are willing to spend their money on entertainment including iGaming providing high revenue for both operators and marketers promoting the platforms.

·  Strict regulation and high levels of trust in brands. With consumer protection laws in place, user trust is high, making it easy to promote products in different niches.

·  Well-developed digital infrastructure. Virtually every citizen of a Tier-1 country can afford one or more devices connected to high-speed internet. Moreover, marketers can use sophisticated strategies including Big Data and AI, Programmatic advertising and multimedia formats.

·  A well-developed culture of online entertainment consumption. For example, more than 64% of adults in Canada and Australia bet or gamble in some form during the year. 

In addition, developed countries attract large advertisers and developed affiliate networks providing good Tier 1 countries advertising opportunities. Marketers who choose to target Tier One countries have access to exclusive offers, quality creatives and high commissions on CPA and other payment models. 

Tier 2 Countries

Generally economically stable, GEOs belonging to this tier are characterised by middle-income populations. Tier 2 countries tend to have large populations. These typically include Turkey, Brazil, Japan, the Czech Republic and some other fairly developed economies. 

Tier 2 markets are interesting for long-term campaigns as there is a constantly growing interest in various products including iGaming platforms. They are also recognised by a lower level of competition, developing digital infrastructure and more or less stable regulation in the field of online gambling. 

Tier 3 Countries

If marketers can afford to turn a blind eye to such an important factor as low purchasing power, they choose Tier 3 to promote offers. This is balanced by the huge number of potential users who are easily interested in what gambling affiliates offer. 

Two other factors make Tier 3 a pretty good choice. Firstly, it is quite low competition and access to cheap traffic, which reduces CPA costs. Secondly, it is a fairly well-developed infrastructure of mobile data transmission, which facilitates the easy promotion of mobile-friendly products. 

Tier 4 Countries

Although the term ‘Tier 4’ is quite rare, some marketers use it to characterise countries with an unstable political scene and extremely weak economies. In simple words, these countries are rarely considered for promoting iGaming and other products. With extremely limited digital channels and a ban on many products, they discourage affiliate marketers willing to promote offers for commissions. 

Income Levels of Marketers in Different Countries

Although the work of an affiliate marketer is full of unexpected twists and turns and exciting features that make it interesting, affiliates primarily want to generate income from their activities. From the paying capacity of the population and the specifics of local legislation to the sophistication of the digital infrastructure, many factors influence affiliate profits - let's look at each tier separately. 

Tier 1

Providing the highest value to advertisers, Tier 1 markets offer the highest salaries for marketers, which can be as high as $120,000 per year. Due to the high LTV of the target audience - despite high competition and large ad spend - here CPAs are as low as $200-300 per client and payouts under the RevShare model are as high as 40-50% of advertiser revenue. 

Tier 2

These GEOs can be attractive to those who find it harder to stand up to strong competition. However, lower buying power - and more difficulty in monetising traffic accordingly - is the flip side of the coin. Marketers working with Tier 2 markets can expect salaries of up to $50,000 per year. As for affiliates (including those working with iGaming affiliates), CPA and RevShare payments here reach $30-100 per customer and 15-30% of the operator's profits, respectively. 

Tier 3

If you are ready to turn a blind eye to the low purchasing power and LTV of potential customers in favour of high volumes of cheap traffic, then Tier 3 is your best choice.   

Picking the Best Tiers for Gambling and Betting Products

You can target a country of any tier to promote iGaming offers. However, most marketers favour Tier 1-2 as there are more people interested in gambling and, more importantly, able to pay for bets. However, sports/eSports betting is increasingly penetrating Tier-3 countries, while Tier One markets with their strict regulation and many involved players are better suited for gambling affiliates. So, if you have to choose between the three tiers, always consider the following factors:

·  Your experience as an affiliate. If you are a novice marketer, try your hand at Tier 2-3 GEOs as the cost of error is much lower here.

·  Financial ability. To succeed in Tier 1 markets, your starting advertising budget should be substantial.

·  Local population preferences. While Australians and Canadians are famous fans of pokies (gambling machines), Indians prefer cricket (national sport), which opens up excellent opportunities for promoting betting offers.

·  Peculiarities of local legislation regarding iGaming. Strict rules towards iGaming platforms and their advertising or a complete ban on iGaming can significantly interfere with your marketing activities. 

Keep in mind that the above figures regarding payments and salaries of marketers are approximate. Research each country in more detail as tiering is not always accurate. 

Final Words

So, now you know that Tier 1 advertising and, for example, Tier 2 advertising can differ significantly due to different living standards in these countries. However, don't just focus on economic factors alone. For example, by looking at the Tier 2 countries list, you can find options that match your marketing goals and strategies. By taking into account the legal and cultural differences between countries, you will be able to implement more effective marketing campaigns to ensure your high profits. 

FAQ 

Why do marketers favour Tier 1 countries?

These countries are characterised by solvent audiences with a high level of trust in digital products. Despite the higher cost, advertising in these countries is more effective than in others. 

Are Tier 2 countries a good choice for promoting iGaming products?

Due to the moderate competition and the constantly growing demand for gambling entertainment, marketers can make good profits by promoting gambling and betting offers in Tier 2 markets. 

Is it worth investing in marketing Tier 4 countries?

Many marketers do not recommend promoting iGaming and other digital products in North Korea, Afghanistan and similar countries due to extremely underdeveloped marketing channels and very strict laws. 

What is the best payment model for Tier 3?

Considering the cost, quality and volume of traffic, you're better off promoting offers under the CPL (Pay-per-lead) model. 

Should you tailor your Tier 1 marketing campaign to Tier 2 countries?

While quality of traffic and personalisation are important for Tier 1, for Tier 2 your strategy should be hybrid with audience segmentation into more solvent and less solvent groups.

 

 

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In the fast-paced world of the iGaming industry, where passion, vision, and strong values drive success, RISK Company shines as a beacon of excellence. At the core of RISK's remarkable story are our employees – the true heroes who continuously raise the bar, propel projects to new heights, and fearlessly embrace challenges. Today, we explore the inspiring journey of one such hero, Dmytro Tsapenko, whose unwavering dedication and passion have transformed his career and left an indelible mark on the company.
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Product Manager vs. Product Owner: Who's Who?

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12 min
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May 16, 2024
It’s very important to know the difference between a product owner and a product manager. This understanding helps teams meet their goals and make products customers love. Without clear roles, it's hard to get a project done well. Knowing what each role does makes teamwork better and tasks clearer.
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Navigating the Legal Landscape of AI-Generated Content in iGaming: Opportunities and Challenges

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8 min
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May 14, 2024
The rise of automated text creation presents significant opportunities for iGaming businesses to expand their reach and improve user engagement. By leveraging AI-powered tools, companies can generate vast amounts of content, such as game descriptions, promotional materials, and even personalized recommendations, in a fraction of the time it would take human writers. This efficiency enables iGaming platforms to cater to a wider audience and deliver tailored experiences that keep users coming back.
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The Metaverse: A Playground for the Future of Marketing

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10 min
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May 3, 2024
Imagine a world where you can step into a virtual store, design your perfect pair of custom sneakers with a virtual reality headset, and have them delivered to your doorstep – all without leaving your couch. Or, picture yourself attending a live soccer match with your friends from all over the globe, where you can cheer, communicate, and interact with the performers in a shared virtual space. That's the kind of future the metaverse promises, and it's fundamentally changing how businesses think about marketing.
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Mastering Expectation Management: Tips & Strategies

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10 min
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April 29, 2024
Expectation management is key for success. With these smart strategies and continuous updates, projects can stay on track. This creates a work culture filled with trust, teamwork, and always getting better.
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Unlocking Success in the iGaming World Essentials

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6 min
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April 29, 2024
In this article, we will delve into the essential insights that can navigate you for better understanding of the gambling world. We will explore the different factors that contribute to success in the gambling industry and provide expert guidance on how to navigate this competitive landscape.
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Boost Collaboration: 5 Tips to Improve Your Teamwork Efficiency

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5 min
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April 29, 2024
In the world of business, working well as a team is vital to success. Did you know effective teams are 5 times more likely to do well and meet their goals? By improving how we talk to each other and building a united team, companies can really boost their productivity.
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How Riskers elevate customer support and their careers

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4 min
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April 17, 2024
What comes to mind when you think of customer support? A corporate machine with constantly changing operators who read from scripts like robots. But if you look at the RISK support team, you’ll see the opposite picture: minimal turnover and support agents speaking in a simple language.
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The Riskers at Cannes Lions: How we back talents

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4 min
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March 20, 2024
Feeling like you’re stuck in the same old routine at work? Every specialist needs a breath of fresh air for inspiration now and then. Our team believes in the power of industry contests. This time, we’ll dive into Cannes Lions – the international festival of creative communications and advertising through the stories of our Riskers!
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The RISK Mindset: An Exclusive Interview with RISK CEO Max Potomkin

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5 minutes
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February 9, 2024
We're about to delve deep into the core of what drives the Riskers. Just as our team charts the course for the entire company, it's the backbone of our team that steers us through these waters. So, let's dive into a sneak peek of the wisdom shared by our captain, Max Potomkin, CEO of RISK.
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How to thrive on the edge

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5 minutes
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December 27, 2023
High-risk businesses demand more from their leaders.
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What kind of tribe is the Risk.Inc team?

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6 minutes
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December 26, 2023
People shape and move any company. What brings professionals from around the world together under one roof? Shared principles and values.
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