Rural India moving to hybrid media consumption and digital payments: Report

According to the Kantar report, there is a 60% rise in the average FMCG basket size among rural consumers.

Manifest Media Staff

Nov 11, 2024, 2:46 pm

Picture Courtesy: Maria Kray from Pixabay

47% of rural India is adopting a hybrid model of traditional and digital media, as per the 2024 Rural Barometer report. The fifth edition of the Rural Barometer report, jointly released by Kantar and GroupM, highlights how rural India is increasingly adopting digital technologies. 

As the media consumption shift is more pronounced in regions with better digital infrastructure, states like Bihar, Jharkhand, Uttar Pradesh, Madhya Pradesh, and Chhattisgarh remain less digitally connected, necessitating targeted media strategies.

42% of the active users are now using digital payments, as per the report.  

Additionally, the report reveals that there is a 60% rise in the average FMCG basket size among rural consumers, from 5.8 in 2022 to 9.3 in 2024, driven by a growing preference for convenience products. 

Individuals with only agricultural income, that make up 19% of the population, face higher financial concerns, as compared to those with diverse income sources.

Key highlights from the report:

  • States like Jammu & Kashmir (39%), Maharashtra (41%), and Odisha (26%) show moderate growth in the FMCG basket despite lower financial worries. 
  • States where rural consumers have fewer concerns about the current financial situation, largely have shown higher growth in basket size.
  • Rural consumers with diversified income streams display the least financial concerns and have larger monthly category basket size.
  • Rural India's media consumption is increasingly hybrid, with nearly one in two rural consumers exposed to both online and offline media.
  • Telecom and digital can be effective in providing incremental reach in Hindi-speaking markets.
  • Digital platforms for payments, e-commerce, and gaming platforms are gaining traction, while genres like fashion, travel and fitness are popular among rural online users.

Ajay Mehta, managing director, GroupM OOH solutions- India, said, “The rural landscape is no longer just a geographical space; it's a digital frontier ripe with opportunities. As rural consumers embrace online platforms, brands must adapt their strategies to meet them where they are. By investing in digital initiatives that resonate with rural India’s aspirations, brands can contribute to the nation’s development and tap into a burgeoning market that promises substantial growth.”

Puneet Avasthi, director- specialist business, insights division, Kantar, said, “2024 Rural Barometer report shows that rural consumers are experiencing rising purchasing power and evolving lifestyles, as seen in increased basket sizes and a preference for convenience products, despite ongoing financial concerns. Regional differences in financial resilience are linked to diverse employment opportunities. We are also seeing rural media consumption shifting toward a hybrid of traditional and digital formats, though digital access remains uneven across states.”

Source: MANIFEST MEDIA

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