Local Advertisers Contribute 75% of DB Corp’s Ad Revenue, Up

DB Corp is increasingly relying on local and regional advertisers as purchasing power and consumer demand grow across India's Tier 2 and Tier 3 cities. According to Girish Agarwal, promoter-director of DB Corp Group, local advertisers now contribute approximately 75% of the company's advertising revenue, compared with 70% five years ago.

Speaking to afaqs!, Agarwal highlighted the rising importance of “Urban Bharat,” referring to urban markets beyond traditional metropolitan cities. He noted that local businesses across real estate, healthcare, automobiles and jewellery are becoming significant contributors to the company's advertising business.

Local brands strengthen their market position

Agarwal believes regional brands are increasingly competing with, and sometimes outperforming, national players by understanding local consumer preferences. He cited Anand Jewels, a jewellery brand based in Madhya Pradesh, as an example of a regional business challenging established national brands.

Healthcare is another category experiencing significant growth. With improved medical infrastructure and specialist services becoming available in smaller cities, consumers increasingly have access to quality treatment closer to home.

A Kantar-Dainik Bhaskar report titled Urban Bharat: India's Consumption Story highlights the growing economic influence of these markets. According to the report, the affluent population in Urban Bharat increased from 22.7 million in 2019 to 39.9 million in 2025, representing growth of approximately 76%.

Rising affluence drives premium consumption

Agarwal explained that the change is not simply about consumers becoming wealthier. Greater awareness and improved product availability are helping people in smaller cities access premium products and services.

The growing presence of luxury brands, premium automobiles and consumer durables reflects this shift. For instance, international luxury furniture brand Minotti has established a large showroom in Ahmedabad, demonstrating the demand for premium offerings beyond metropolitan markets.

Agarwal also pointed out that customer acquisition costs in Tier 2 and Tier 3 cities can be significantly lower than in metros, creating attractive opportunities for marketers and businesses.

Digital adoption complements traditional media

Digital connectivity is further transforming consumer behaviour in smaller cities. The Kantar report indicates that smartphone penetration in Urban Bharat reached 85.7% in 2025, while internet reach stood at 84.9%.

Online shopping and internet-led product research have also gained momentum, with consumers increasingly using digital platforms to discover products and evaluate purchases.

Despite this growth, Agarwal believes print media continues to offer credibility, local relevance and trust. Newspapers and digital platforms increasingly work together as consumers move between traditional media, social channels and online content during their purchasing journey.

DB Corp records growth in print advertising

DB Corp's print advertising business grew 6.3% in FY26 on a like-for-like basis, generating approximately ₹1,500 crore in print advertising revenue, according to the company's earnings call.

Agarwal attributed much of this growth to increased advertising volumes and existing advertisers expanding their campaigns, rather than substantial rate increases.

He also anticipates stronger advertising activity during the festive season, particularly in categories such as automobiles and FMCG. With Navratri beginning in October this year, advertising demand is expected to shift towards October compared with the previous year.

Why Urban Bharat matters to marketers

Agarwal believes many marketers and advertising agencies continue to underestimate smaller cities because their teams are concentrated in metropolitan centres. He urged businesses to spend more time understanding consumers in these markets rather than viewing them as extensions of metro India.

For DB Corp, the increasing contribution of local advertisers reflects a broader shift in India's consumption landscape. As regional businesses expand and consumers gain access to more products and services, Tier 2 and Tier 3 markets are becoming increasingly important to the country's advertising industry.