eciding on the geography of your ads always plays an integral part of a marketing campaign, if of course you want it to work right. Choose your target market right, and you will get exposure among just the right audience, which will result in more clients coming your way. Choose your target market wrong, and you will not only burn through your budget, but also turn your whole marketing campaign into a waste, as the results will most likely return little to no traction.
So what is the difference between these country tiers and how to find the right one for your campaign?
This is exactly what we will look into today in a bid to provide you with enough knowledge on the differences, so that you make the correct decisions when setting up your bitcoin marketing campaign and targeting the right geographical region via the Bitmedia advertising platform!
GEO Tier Marketing Principles
It is critical to note that all country tiers are important and they all carry both pros and cons when it comes to deciding on your crypto ad campaign strategy. All countries in tiers are classified by how well their economies are doing, drawn from performance indicators like Gross Domestic Product (GDP), GNI per capita (Gross National Income), inflation, exchange rates, as well as the Human Development Index (HDI).
Tier 1 countries are considered to represent the first world or the most developed economies, whilst Tier 3 countries represent a proportionally opposing list of economies that are typically called the third world. Tier 2 countries as you can imagine, stand for the balance between the aforementioned tiers, where the economies are in a healthy development stage and GDP levels are at a sufficiently good level.
Some outline that there are Tier 4 countries too, but we will exclude them from today’s analysis because they are considered to be impenetrable in terms of content or marketing due to the lack of internet communications, government regulations, language boundaries and many other aspects that make any kind of foreign marketing practically impossible.
Tier 1 Countries
These are the most developed countries in the world, that boast consumers with the biggest buying power and deepest pockets. It’s the countries where everything sells regardless of the price of the product or service. It’s the technologically advanced regions, where mostly every citizen has a smartphone and an internet connection and hence, they serve as a playground for the utmost tailored marketing campaigns, given the available amount of audience data collected on a daily basis and the buying capacity, however niche your tier 1 marketing is.
Nevertheless, there are some disadvantages to the tier 1 countries too. It’s the market everyone wants to enter and therefore, competition is usually extremely fierce. These regions are highly regulated, which prompts specific ad placement rules and company conduct and finally, this brings us to costs.
High level of competition results in high costs. Regardless of where the crypto advertiser is based, chances are, at least a small part of their budget is allocated towards tier 1 marketing. This, quite often, rockets the CPMs, CPAs and CPCs costs to the Moon and sometimes even Mars, turning any marketing campaign into a quite costly endeavour. Still, it’s where Bitmedia can help, because we know the industry through and through and always make sure our clients set their tier 1 marketing campaigns just right, to make them effective.
Tier 1 snapshot:
- Huge buying power
- Technologically developed states
- Access to diverse consumer data
- English as a first language (in most countries)
- Can be costly due to high competition
- Highly regulated medium
Geo examples: United States, United Kingdom, Germany, France, Singapore, Denmark, Norway, Luxembourg, Australia, Switzerland, Netherlands, Canada, Hong Kong, Ireland, Iceland, Sweden and more…
Tier 2 Marketing
For most, the countries that form the tier 2 list of markets become the perfect balance between the completely opposing tier 1 and tier 3 participants. The list comprises countries with moderate economic growth, good level of technology adoption and competition that is not as cut throat as the one found within the tier 1 targeting. This market provides a healthy influx of consumer demand and offers access to a broad variety of audience, that fit an even broader scope of what you can tailor your marketing campaign to.
The perfect market for you?
Well, not necessarily. Given that tier 2 countries greatly vary by religion and language, it is very likely that your product or service will first have to be localised to achieve its full potential. Again, do not generalise this, as every product or service is different and the aforementioned disadvantage may not be applicable to your specific case. Nevertheless, it is something you have to take into account or a point that our account manager will always outline for you and advise you on.
Tier 2 snapshot:
- Moderate buying power
- Good technology adoption level
- Medium competition, but sufficiently weaker compared to tier 1
- Regulations differ by state
- Not everyone speaks English, but it often comes as second language
- Diverse religious view must be considered
Geo examples: South Korea, Brazil, Turkey, Croatia, Belgium, Poland, Czech Republic, Slovenia, Portugal, Greece, Argentina, New Zealand, Israel, Qatar, Italy, South Korea, Romania, Spain, Russia, United Arab Emirates, Finland and more…
Tier 3 Countries
Perhaps you are getting the drift by now and we don’t have to indulge into a detailed analysis of the tier 3 countries to explain what this segment is all about. The tier comprises third world countries that don’t boast much buying power on behalf of the public, low economy development, and it’s where localization becomes an integral part of a tier marketing campaign. Internet penetration is considerably lower in tier 3 countries compared to tier 2 and this in turn makes for low advertising costs and lack of competition.
Tier 3 snapshot:
- Very low competition
- Inexpensive advertising campaigns
- Low buying power
- Low technology adoption level
- Incremental need for ad localization
Geo examples: Kenya, Nigeria, Nepal, Vietnam, Uganda, Bolivia, Pakistan, Cameroon, Albania, Egypt, Iraq, Bulgaria, India, Congo, Morocco, Serbia and more…
What Does Tier Marketing Come To?
Every single tier has its own advantages and disadvantages. The main thing that we will never get tired of mentioning though, is that it is all down to your product or service and how you set your campaign, that in the end, should govern the tier you decide to opt for. Over the years of Bitmedia existence, we have seen and keep seeing countless examples of products that break through the toughest competition and take the industry lead in tier 1, services that pick up just the right audience and become household names in tier 2 and finally, clients who manage to achieve greater effectiveness of their campaigns in tier 3 than others reach in tier 1 and 2 combined.
What is your target tier going to be?
Therefore, it is mindful crypto advertising, done with an industry specialist, that will always perform best, whatever the tier you decide on, since in reality, there are no bad tiers out there. In the end, tiers marketing segregation helps us to identify and evaluate the good and the bad of each geographical region and set a foundation upon which strong and productive marketing campaigns can be built!