India’s next phase of digital growth is unfolding far beyond the metros. As urban markets mature, non-metro and rural India are emerging as the true engines of scale, influencing how platforms approach access, engagement and monetisation. What was once viewed largely as a catch-up market is now actively redefining digital behaviour, spanning content consumption, commerce, payments and even platform design.
This shift is backed by data. According to the Kantar Media Compass Report, Q3 2025, nearly 75% of India’s digital-only users are based in rural markets, underscoring the accelerating pace of digital adoption outside urban centres. The report attributes this surge to mobile-first access, expanding telecom infrastructure and the growing affordability of smartphones, which together have lowered barriers for first-time internet users.
The behavioural shift is also reshaping marketing investments. Industry experts point to a clear reallocation of budgets, with around 45% of digital marketing spends now directed towards Tier II, Tier III and rural markets. Lower CPMs, averaging about 40% below metro rates, combined with higher engagement and cost-efficient influencer partnerships, have made non-metro India central to digital media planning across categories such as FMCG, telecom and financial inclusion.
Mobile-first marketing
A key driver behind this momentum is the nature of rural digital adoption itself. Unlike urban users, rural audiences are entering the ecosystem without legacy desktop habits. For many, the smartphone is the primary and often the only screen, creating a distinctly mobile-native behaviour. This has pushed platforms to prioritise voice-led navigation, regional language interfaces and low-data formats, making usability and accessibility critical to product development.
Content consumption patterns further highlight this divergence. Short-form video, vernacular content and locally relevant creators are seeing strong traction in rural India. Rather than aspirational or global narratives, users gravitate towards familiar, utility-driven and community-oriented storytelling, prompting platforms and brands to invest deeper in localisation beyond translation.
This evolution is clearly reflected in brand strategies. Amarnath Dutta, CMO, Cycle Pure Agarbathi, said that the expanding rural digital audience has reshaped the brand’s marketing budget allocation across traditional and digital channels. While temples, fairs and cultural gatherings continue to be key touchpoints, these are now complemented by mobile-first platforms and vernacular digital spaces where consumers engage with spirituality. “We consciously balance spending between metros and non-metros, investing in regional influencers and vernacular content that carry forward the authenticity of traditional community platforms while leveraging the efficiency of digital ones. This ensures inclusivity and resonance across India’s diverse consumer base,” he added.
He further noted that rural India’s fast-paced digital adoption blends traditional storytelling with formats such as voice search, short-form video and regional language content. This duality influences campaign design, with a focus on platforms like YouTube and WhatsApp communities, while success is measured beyond clicks to include conversations and community resonance.
A similar pattern is visible in financial services, albeit with category-specific nuances. For Aadhar Housing Finance Ltd, increased smartphone usage has driven higher digital consumption in rural markets, with video emerging as the dominant format. However, while digital channels support education and awareness, home loan decisions remain trust-driven, reflected through enquiries, branch visits and housing camps.
“Today, budgets are allocated based on demand potential and digital responsiveness rather than geography alone. Non-metro and rural markets now receive a meaningful share of our digital spends, particularly on mobile-first platforms that help educate customers and build early awareness,” said Noel Mascarenhas, Head of Marketing at Aadhar Housing Finance Ltd.
The company continues to invest in physical touchpoints such as housing camps and branch interactions, as home loan decisions are deeply trust-led, he added. “While digital channels initiate engagement, personal interactions build confidence, prompting a shift from a metro–rural divide to a journey-led approach where digital and on-ground teams work together.”
For consumer durables, rural and non-metro audiences are emerging as a primary growth engine. Renuka Jaypal, Brand & Marketing Consultant at Peps Industries, said that 65–70% of new internet users over the past five years have come from rural and non-metro markets. She highlighted that CPMs in Tier II–III markets are 30–50% lower than metros, engagement for vernacular content is 1.3–1.6x higher, and regional influencers charge 40–60% less while delivering comparable reach, driving more balanced budget allocations.
Reinforcing the short format growth, she noted, “Rural audiences aren't passive like urban India has become; they engage deeply. Pizza places in cities struggle on social media, while local ‘buy 3 shirts for 500’ stores in small towns rack up massive numbers. Rural users show higher propensity to comment, forward, save, and share, exactly what brands crave.”
In financial investing, rural digital behaviour is influencing national communication strategies as well. At Mirae Asset Investment Managers (India), campaigns are increasingly mobile-first and vernacular to build trust among first-time investors. The company is seeing higher viewership from the northern belt, especially Uttar Pradesh, with engagement measured through outcomes such as SIP adoption, repeat investments and long-term participation.
Shrinivas Khanolkar - Head – Digital, Marketing & Corporate Communication at Mirae Asset Investment Managers (India) explained, “Instead of viewing rural India as an inactive adopter, we witness it actively shaping digital behaviour, prompting us to allot marketing spends more towards engagement, cost efficiency and sustainable, long-term growth potential across geographies. Viewers of our social handles demand more Hinglish content rather than ‘simple only English’.”
From a creator and platform perspective, the shift is equally pronounced. Shahir Muneer, Founder and CEO, Divo, pointed out that brands are increasingly allocating budgets based on consumption behaviour rather than pin codes, especially as first-time digital users largely come from rural India. “We’re seeing non-metros are getting a large share of digital budgets, not as an afterthought but as a primary driver of scale, frequency, and discovery, particularly across video, short form, and regional content.”
Agency perspectives further reinforce this shift. Yasin Hamidani, Director, Media Care Brand Solutions, said rural and non-metro markets are no longer extensions of metro campaigns, with many brands allocating 40–50% of digital budgets to Tier II, Tier III and rural India. Lower CPMs and CPVs, often 30–50% cheaper than metros, along with scale and long-term growth potential, are forcing brands to rethink urban-heavy planning. “However, brands are becoming smarter—cost alone isn’t the metric. Engagement quality, completion rates, and language relevance are now equally important, ensuring that lower costs don’t come at the expense of impact or trust,” he added.
Rural India’s role in shaping national strategies
According to experts, rural India is increasingly influencing how brands design and scale national marketing strategies, rather than being treated as a secondary market. Its growing digital footprint is shaping decisions around media mix, platform choice and engagement metrics across categories.
Hamidani added that formats such as short-form video, voice-led content and regional creators are moving from rural-first platforms into mainstream campaigns. Many brands now test narratives in non-metro markets before scaling nationally, recognising that rural audiences are setting norms around language, content length and platform usage.
Summing up this shift, Dutta said, “Rural India is no longer a silo; it is a catalyst shaping national strategy. Its digital adoption reflects the future of mass engagement, while its cultural heritage continues to inspire trust and authenticity.” For Cycle Pure Agarbathi, rural insights now inform campaign storytelling, media mix and platform choices, making them central to national advertising strategies.
For Aadhar Housing Finance, rural learnings similarly act as a leading indicator. Trust, clarity and aspiration matter more than high-polish communication, Mascarenhas noted, adding that digital reach must be balanced with a people-first, on-ground approach.
Concluding the broader trend, Jaypal said budgets are increasingly flowing towards lower-cost, high-engagement Tier II–III channels, with creative design adapting to rural-led consumption patterns. “Rather than being an afterthought, rural markets are now the leading indicator for national campaigns, driving efficiency, responsiveness and scale,” she concluded.