Ready to launch your campaign, and want to focus on US and other Tier 1 geos only? This post is for you.
Why you should diversify your geos
Tier 1 geos are the ones where users can potentially generate higher revenues: USA, Canada, Australia, New-Zealand and Great-Britain.
Most advertisers choose to focus on the above geos for their campaigns because they are more likely to reach high ROI. However, they suffer from high competition and therefore, CPIs (Cost Per Install) can go very high, up to $10. The average CPIs are from $2.00 to $4.00.
We recently published the results of a survey showing that more and more mobile advertisers target geos from different Tiers. Indeed, the lower competition helped them lead ROI positive campaigns as they have bought a high number of users for a very low CPI.
Which ones should you target?
Our interviewed advertisers reported buying traffic from Tier 2 geos (mostly Europe: France, Germany, Netherlands) as well as Tier 3 geos (Brazil, Russia, Turkey were the most quoted ones).
CPIs usually vary from $1.00 to $2.00 in Tier 2 geos, and from $0.40 to $1.20 in Tier 3 geos. Not only are the CPIs much lower than Tier 1 geos, but it is also easier to get the best placements to display the ads. In other words, both conversion rate and traffic quality are better.
Advertisers targeting Tier 2 and Tier 3 geos tend to look at various KPIs other than ROI to check the quality of the traffic (Day 1 retention rate…).
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