The advertising landscape in India’s rural markets, often referred to as Bharat, is undergoing a significant transformation as digital media gains traction. However, traditional media such as print and radio continue to play a crucial role in last-mile penetration. As brands navigate this evolving environment, the cost-effectiveness of these media channels becomes a central theme.
Digital advertising is projected to grow by 15.9% in 2024, reaching approximately Rs 57,757 crore (around $7 billion). This growth is largely driven by increased internet penetration and government initiatives aimed at enhancing digital infrastructure. Currently, digital media accounts for about 47% of total ad spending in India, with expectations to reach 50% by 2026.
Shradha Agarwal, Co-founder and Global CEO at Grape Media, emphasises the agility of the advertising sector in adapting to this digital shift: “Given the rapidly evolving digital landscape of the country, the advertising sector has been agile enough to incorporate digital advertising to stay abreast of the latest trend.”
She noted that while digital advertising allows brands to calibrate ROI through analytics and optimize campaigns effectively, traditional modes still hold significant value. “Traditional advertising remains a powerful tool for catering to the older demographic and masses who are not tech-savvy,” she adds.
In contrast, the print advertising sector is expected to grow by 6.1%, reaching around ?18,771 crore in 2024. Print media continues to be influential in rural markets, with a circulation of approximately 402 million copies, according to industry estimates.
As urban India reaches saturation in terms of market potential, advertisers are increasingly turning their attention to Bharat, the vast rural expanse that constitutes a significant portion of the country. The e4m-TAM report highlights a remarkable 106% increase in ad spends for Brands of Bharat in 2023 compared to 2019, and a 75% increase from 2022, underscoring the growing recognition of rural markets as fertile ground for growth.
The rise of digital connectivity in these regions is a game changer. With the proliferation of affordable smartphones and improved internet access, rural consumers are becoming more digitally engaged. This shift is reflected in the changing advertising landscape, where brands are now prioritizing localized content and vernacular advertising to resonate with diverse audiences.
Manish Solanki, COO and Co-Founder of TheSmallBigIdea, points out that despite the rise of digital platforms, vernacular media still dominates the rural economy. “With affordable smartphones and data, we see a shift towards a digital-first approach, yet industries like agriculture and FMCG still prefer print over digital,” he explains. He highlights that traditional media leverages established local distribution networks, which are particularly effective for market penetration in rural areas.
Radio advertising also plays a vital role in reaching rural audiences. The costs for radio ads can vary widely; typically, a 10-second ad can range from ?100 to ?2,500, depending on factors such as timing and location.
Tejas Maha, Group Head - Media at White Rivers Media, notes that radio continues to anchor trust within communities, noting, “Print and radio remain invaluable for mass communication in regions with developing digital infrastructure.”
He emphasizes that different market segments require tailored approaches. “FMCG and consumer durables sectors maintain strong investments in traditional media because community-driven decision-making shapes purchasing patterns.”
The hybrid model of media consumption is becoming increasingly prevalent in Bharat. According to a report by Kantar and GroupM, nearly 47% of the rural population now engages with both traditional and digital media formats. This shift is pronounced in regions with better digital infrastructure; however, states like Bihar and Uttar Pradesh remain less digitally connected.
Rahul Vengalil, Co-Founder and CEO at TGTHR, underscores the importance of this hybrid approach, pointing out, “Rural India has 425 million users growing at 30%. Almost 50% of rural India has access to the internet today.” He adds that while digital offers efficiency and cost-effectiveness compared to print and radio, traditional media still holds substantial relevance for last-mile messaging.
As brands strategize their advertising efforts in Bharat, they must recognize the distinct roles played by both traditional and digital media. The synergy between these channels enables deeper market penetration while respecting local dynamics. With rising incomes and evolving lifestyles among rural consumers—evidenced by a 60% increase in average FMCG basket sizes—the opportunity for brands is immense.