In the world of digital advertising, not all countries are seen equally. Advertisers often divide countries into three main groups based on their economic strength, online user value, and ad performance. These groups are called country tiers—Tier 1, Tier 2, and Tier 3.
Let’s break down what these country tiers are, why they matter, and how they can impact your advertising strategy.
What Are Country Tiers?
If you've ever played video games like FIFA or Madden, then you're already familiar with the idea of tier lists. In those games, teams are ranked based on performance and stats. Similarly, in advertising, countries are grouped based on economic strength—like average income, internet access, and purchasing power.
Wealthier countries with higher disposable incomes are placed in Tier 1, while developing nations with lower purchasing power are put in Tier 3.
The Three Country Tiers in Advertising
Most ad platforms and marketers use a three-tier system:
- Tier 1 – The wealthiest nations with the highest spending potential. These countries are extremely competitive for advertisers and typically have the highest cost per click (CPC).
- Tier 2 – Countries with decent income levels but not as high as Tier 1. They have less competition and lower CPCs.
- Tier 3 – Developing or underdeveloped countries with very low CPCs, low competition, and limited disposable income.
| Tier 1 Countries | Tier 2 Countries | Tier 3 Countries |
|---|---|---|
| Australia | Andorra | Albania |
| Austria | Argentina | Algeria |
| Belgium | Bahamas | Angola |
| Canada | Belarus | Armenia |
| Denmark | Bolivia | Azerbaijan |
| Finland | Bosnia and Herzegovina | Bahrain |
| France | Brazil | Bangladesh |
| Germany | Brunei | Barbados |
| Ireland | Bulgaria | Belize |
| Italy | Chile | Benin |
| Luxembourg | China | Botswana |
| Netherlands | Colombia | Burkina Faso |
| New Zealand | Costa Rica | Burundi |
| Norway | Croatia | Cambodia |
| Spain | Cyprus | Cameroon |
| Sweden | Czech Republic | Cape Verde |
| Switzerland | Dominican Republic | Chad |
| United Kingdom | Ecuador | Comoros |
| United States of America | Egypt | Congo |
| Estonia | El Salvador | |
| Fiji | Ethiopia | |
| Greece | Gabon | |
| Guyana | Georgia | |
| Hong Kong | Guatemala | |
| Hungary | Guinea | |
| Iceland | Haiti | |
| Indonesia | Honduras | |
| Israel | India | |
| Japan | Iraq | |
| Kazakhstan | Jamaica | |
| Latvia | Jordan | |
| Lithuania | Kenya | |
| Macao | Kuwait | |
| Malaysia | Kyrgyzstan | |
| Malta | Laos | |
| Mexico | Lebanon | |
| Montenegro | Lesotho | |
| Morocco | Macedonia | |
| Nepal | Madagascar | |
| Oman | Mali | |
| Panama | Mauritania | |
| Paraguay | Mauritius | |
| Peru | Moldova | |
| Philippines | Mongolia | |
| Poland | Mozambique | |
| Portugal | Namibia | |
| Puerto Rico | Nicaragua | |
| Qatar | Niger | |
| Republic of Korea (South) | Nigeria | |
| Romania | Pakistan | |
| Russian Federation | Senegal | |
| Saudi Arabia | Sri Lanka | |
| Serbia | Suriname | |
| Singapore | Swaziland | |
| Slovakia | Tajikistan | |
| Slovenia | Tanzania | |
| South Africa | Togo | |
| Thailand | Trinidad and Tobago | |
| Turkey | Tunisia | |
| Ukraine | Turkmenistan | |
| United Arab Emirates | Uganda | |
| Uruguay | Uzbekistan | |
| Vanuatu | Vietnam | |
| Zambia |
Tier 1 Countries
These are the premium markets where advertising costs are highest, but the chances of conversion are also better due to wealth and purchasing power.
- High GDP and income
- Strong digital infrastructure
- Expensive CPC
- Native English-speaking or fluent populations
Examples include:
United States, United Kingdom, Canada, Australia, Germany, France, Netherlands, Norway, Sweden, Switzerland.
Tier 2 Countries
These are countries with medium economic development. They may have large populations, growing digital use, and moderate income levels.
- Reasonable CPCs
- English is often a second language
- Lower competition than Tier 1
- Often overlooked by large brands
Examples include:
Brazil, South Korea, Portugal, Japan, Mexico, China, Turkey, Romania, Malaysia.
Tier 3 Countries
Tier 3 countries are mostly developing nations. They have the cheapest CPCs and often have very limited digital infrastructure or language compatibility with English.
- Very low CPC
- Almost no competition
- Limited purchasing power
- Lower conversion rates
Examples include:
Nigeria, Bangladesh, Nepal, Albania, Ethiopia, Iraq, Uganda, Madagascar.
Choosing the Right Country Tier for Your Ads
While Tier 1 markets may look attractive due to their high ROI potential, they also come with high competition and cost. For small businesses or niche products, Tier 2 countries may provide a much better return on investment.
Tier 2 Highlight: South Korea
South Korea, with a GDP of over $1.6 trillion, is a tech-savvy and economically strong country. It is listed under Tier 2 mainly due to language and cultural differences. With Korean-language ad creatives, advertisers can find great success here.
Tier 2 Highlight: Portugal
Portugal is another Tier 2 country that can be underrated. It has a GDP of $240 billion and a population that is fairly fluent in English. With lower ad costs than Tier 1 neighbors, it’s a great market for campaigns with localized messaging.
Final Thoughts
Country tiers are not just about targeting rich countries. They are about understanding where your ads will perform best for your goals and budget. Tier 1 is best for big-budget global campaigns, while Tier 2 and Tier 3 can offer affordable and sometimes more efficient alternatives—if approached strategically.