How to Guess an Optimal CPC / CPI / CPA bid for Tier I, II or III Countries?

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Written by Luisa Woodfine Updated over a week ago
For Tier III Countries:-
  • Tier 3 (e.g., India, Bangladesh, Kenya): 

    Code Country / Territory
    AF Afghanistan
    AL Albania
    AO Angola
    BD Bangladesh
    BJ Benin
    BO Bolivia
    BF Burkina Faso
    BI Burundi
    CM Cameroon
    CF Central African Republic
    TD Chad
    KM Comoros
    CD Democratic Republic of the Congo
    CG Republic of the Congo
    CI Côte d'Ivoire
    DJ Djibouti
    EG Egypt
    SV El Salvador
    ET Ethiopia
    GA Gabon
    GM Gambia
    GH Ghana
    GT Guatemala
    GN Guinea
    GW Guinea-Bissau
    HT Haiti
    HN Honduras
    IN India
    ID Indonesia
    IQ Iraq
    KE Kenya
    KG Kyrgyzstan
    LA Laos
    LS Lesotho
    LR Liberia
    MG Madagascar
    MW Malawi
    ML Mali
    MR Mauritania
    MN Mongolia
    MA Morocco
    MZ Mozambique
    MM Myanmar
    NP Nepal
    NI Nicaragua
    NE Niger
    NG Nigeria
    PK Pakistan
    PG Papua New Guinea
    PY Paraguay
    PE Peru
    PH Philippines
    RW Rwanda
    SN Senegal
    SL Sierra Leone
    SO Somalia
    LK Sri Lanka
    SD Sudan
    SY Syria
    TJ Tajikistan
    TZ Tanzania
    TG Togo
    TN Tunisia
    TM Turkmenistan
    UG Uganda
    UZ Uzbekistan
    VE Venezuela
    VN Vietnam
    YE Yemen
    ZM Zambia
    ZW Zimbabwe
    AR Argentina
    BR Brazil
    MX Mexico
    CO Colombia
    CL Chile
    EC Ecuador
    CR Costa Rica
    DO Dominican Republic
    KH Cambodia
    JO Jordan
    LB Lebanon
    DZ Algeria
    LY Libya
    MU Mauritius
    NA Namibia
    UA Ukraine
    RS Serbia
    BA Bosnia and Herzegovina
    MK North Macedonia
    MD Moldova
    AD Andorra
    SM San Marino
    VA Vatican City
    BY Belarus
    PS Palestine
    BZ Belize
    CU Cuba
    JM Jamaica
    TT Trinidad and Tobago
    BS Bahamas
    BB Barbados
    AG Antigua and Barbuda
    DM Dominica
    GD Grenada
    KN Saint Kitts and Nevis
    LC Saint Lucia
    VC Saint Vincent and the Grenadines
    GY Guyana
    SR Suriname
    BW Botswana
    CV Cape Verde
    GQ Equatorial Guinea
    ER Eritrea
    SC Seychelles
    SS South Sudan
    ST São Tomé and Príncipe
    SZ Eswatini
    FJ Fiji
    WS Samoa
    TO Tonga
    TV Tuvalu
    VU Vanuatu
    KI Kiribati
    NR Nauru
    PW Palau
    FM Federated States of Micronesia
    MH Marshall Islands
    SB Solomon Islands
    NC New Caledonia
  • Low purchasing power, massive volume, very cheap traffic.
  • Tier 3 are low-cost ($0.08–$0.25)
  • For countries like IN, CPC or CPI bid of $0.08 should work.
  • In case of CPA, at least $0.15 is recommended.
For Tier II Countries:-
  • Tier 2 (e.g., Brazil, Mexico, Japan): 

    Code Country / Territory
    NL Netherlands
    PL Poland
    DK Denmark
    IE Ireland
    SE Sweden
    TW Taiwan
    ES Spain
    FI Finland
    IT Italy
    HU Hungary
    BE Belgium
    EE Estonia
    GR Greece
    HK Hong Kong
    IL Israel
    LI Liechtenstein
    LU Luxembourg
    IS Iceland
    QA Qatar
    KW Kuwait
    SK Slovakia
    SI Slovenia
    MC Monaco
    CZ Czech Republic
    KR South Korea
    SG Singapore
    NO Norway
    TR Turkey
    RO Romania
    BG Bulgaria
    AE United Arab Emirates
    GL Greenland
    ZA South Africa
    SA Saudi Arabia
    PT Portugal
  • Moderate purchasing power, fast-growing, excellent for scaling at balanced prices.
  • Tier 2 are moderate ($0.15–$0.50)
  • For countries like Brazil => $0.20 or more 
  • In case of CPA, at least $0.3 is recommended.
For Tier I Countries:-
  • Tier 1 (e.g., US, UK, Canada, Australia): 

    Code Country / Territory
    GB United Kingdom
    CA Canada
    US United States
    GG Guernsey
    JE Jersey
    AU Australia
    NZ New Zealand
    DE Germany
    AT Austria
    FR France
    JP Japan
    CH Switzerland
  • High competition, high conversion value, and highest traffic costs.
  • Tier 1 bids are premium ($0.50+)
  • For counties like US, GB => $0.5 or $1 or even more.
  • In case of CPA, at least $1 is recommended.

 
As you are aware of different types of advertising model like CPA, CPI etc. but here it matters a lot which countries are you targetting. There will be a great impact on ROI based on targetting countries. Lets first understand what exactly mean by different tiers of countries. The grouping of countries into different tiers is based on GDP and purchasing power. Depending on this , there are generally three types tier, Kindly refer list below:

Tier 1 – A set of countries that every Marketers/Advertisers are willing to work with. They are rich countries and the most competitive GEOs. The people here have good per capita income and better purchasing power. These countries are very competitive, High payouts, Very expensive traffic.
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Tier 2 – Lower per capita income as compared to tier 1 and these countries are quite competitive, comparatively lesser payout, less expensive traffic.
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Tier 3 –  Developing countries and consumers with a low purchasing power. These countries are Extremely low competition, very less payouts, Very cheap traffic. 

Depending on advertisement goals as well as business model of the product that is advertised the advertiser should decide about the targeting. Income from ads / eCPMs are likely higher in tier I countries.

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