By Vikas Katoch
India’s digital marketing story is no longer confined to metro cities. The real momentum is now coming from Tier 2 and Tier 3 markets such as Jaipur, Lucknow, Kanpur, Nashik, Nagpur, and Bhubaneswar. These cities are fast emerging as digital-first ecosystems, driven by rising disposable incomes, aspirational lifestyles, and growing confidence in e-commerce and digital transactions.
With more than 850 million internet users and over 700 million smartphone subscribers, businesses are rapidly rethinking their digital strategies. According to recent industry reports, only 14% of internet users belong to the top nine metros, while 9% are from smaller metros, 22% from Tier 2 and 3 towns, and 55% from rural India. This shift signals a massive opportunity for brands to connect with a diverse, untapped audience through new-age digital formats.
Programmatic advertising has seen exponential growth in India, particularly outside metros. Smaller cities are witnessing increased adoption of real-time bidding, banner ads, and cost-effective CPMs that give brands greater efficiency in reaching audiences.
We believe the next big growth driver is CTV advertising, which is redefining household-level engagement in non-metro regions. As connected TVs penetrate deeper into Tier 2 and Tier 3 markets, advertisers can now reach families directly in their living rooms with precision and impact.
Video advertising and rich media innovations are also creating new opportunities. Platforms like YouTube, Instagram, and Facebook dominate consumer attention, while WhatsApp-led promotions are helping small businesses build direct connections with their audiences. Nearly 70% of small businesses in these cities now rely on WhatsApp to drive consumer engagement.
A defining factor in these markets is the importance of regional content and almost 95% of consumers prefer content in local languages. Localised campaigns see up to 65% higher conversion rates. Hyper-personalised campaigns such
as food apps offering biryani deals in Kolkata or butter chicken offers in Punjab drive stronger engagement when delivered in regional languages.
Another important trend is the rise of women entrepreneurs in smaller cities. India today has nearly 22 million women-owned small businesses, making up around 20% of the total. Many of these women-led ventures operate in wellness, F&B, fashion, beauty, and local services, and they increasingly rely on digital platforms for growth.
The story of digital India is now being written in Tier 2 and Tier 3 markets. These cities are not just adopting technology, they are shaping the next phase of digital innovation. CTV advertising, video advertising, programmatic buying, and rich media innovations will play a central role in capturing these audiences.
The author is founder & CEO, Adomantra Digital.
