The word hyper, prefixed to words, enhances the value of that word. In the case of hyperlocal, the word hyper becomes an enforcer – minutely targeting potential audiences after a more refined search. Hyperlocal marketing enables brands to reach a greater depth within the populace. It is interesting because it creates a level playing field for small brands, and presents the opportunity of mass appeal for big brands. When you see a tiny packet of Oreos, a brand that found its roots in New York City in the year 1912, you know that the hyperlocal approach has reached your doorstep. As a consequence, your local midnight eatery is now offering you Oreo Milkshakes at an astonishing price. The brand wins, while the ‘locals’ savour. What can be more hyper than that?
In a bid to widen the reach of Dabur Babool toothpaste, the company was investing in a 360-degree advertising approach, which included Television. However, after learning that the entire sales of Babool came from five districts in West Bengal, Dabur started focusing on those five districts to maximise the reach using a hyperlocal strategy. This move not only solidified their presence in those markets but also helped them use their funds more efficiently. Similarly, many other brands are said to have benefited from hyperlocal marketing, which, as per experts, not only helps brands target consumers more effectively and nurtures stronger connections but also leads to higher conversions and better returns on investment (ROI).
Shashidhar Sharma, Country Head, Programmatic, Group M observes that a hyperlocal approach in some instances can shoot up the return on investment by 1.47 times in comparison to a normal campaign. “Across GroupM, we have seen an increase of 60% in terms of the conversion ratio of users when we use hyperlocal compared to a campaign that is not hyperlocal,” he says.
Industry professionals are further highlighting that hyperlocal strategies are pushing brands to tackle language differences, regional preferences, and cultural nuances, which is the call of the hour in a country as diverse as India.
Taking diversity into consideration, Arif Kooliyat, Vice President of New Product Development at V-Guard shares, “India is a big country, and every state has a different way of working, and there are many regional preferences. Right from developing a product, we cover these kinds of regional preferences so that the product that we make will cater to all the segments that are there because it’s a diverse population that we are catering to.”
Tackling large competitors with tailored communication and focus
Experts are arguing that integrating hyperlocal is helping regional brands face the challenges of going up against big multinationals. Today, brands have the option of catering to specific geographies and eventually tailoring brand communication as per the requirements of that region. Some reports suggest that businesses in India that have used hyperlocal marketing saw considerable reductions in overall marketing spends while achieving higher returns on investment.
Augustus Daniel, Head of Marketing, OralCare, Dabur India gives an example of the launch of Dabur Red Bae Fresh Gel and points out that in a duopolistic market that is largely dominated by two MNCs with deep pockets and great penetration, Dabur tried to test the waters and came up with an Andhra Pradesh-oriented strategy. They joined hands with local influencers like Vijay Deverakonda, and the top publications in the region. Dabur then came up with AB, supported by regional media and YouTube multimedia, in Andhra Pradesh. Daniel reveals that this experiment, which took place between September 2022 and January of this year, helped Dabur measure consideration and offtakes from the store, and also increased their market share within the freshness category. He reveals that Dabur’s penetration improved from 73% to 77% in Andhra Pradesh using a purely hyperlocal strategy.
Daniel then goes on to talk about the oral care market space for Gen Zs and millennials from urban regions, which is around Rs 130 cr., largely dominated by one player with big budgets controlling about 65% of the market. He says, “Instead of investing like the large players, we started focusing on modern trade, which was behind 80% of our sales in that segment. Dabur focused on specific markets using a hyperlocal strategy, which helped us grab a share of almost 3.5% in that segment. All this, after making a fraction of the spends in comparison to large multinationals.
In some instances, an integrated hyperlocal approach to marketing is more efficient in comparison to a pan-India strategy. According to reports, hyperlocal marketing has benefited Maruti Suzuki, and Digital leads from this programme make up around 30% of their car sales. As per experts, the changing consumer trends have led to customising the strategy to consumer needs and wants, making it hyperlocal.
Tushar Malhotra, Head of Marketing, Bisleri notes that his company recognised this need to build a robust hyperlocal presence in the southern market, especially in Tamil Nadu, where unorganised players dominated. For that, he says that they embarked on a strategy to forge a deeper connection between consumers and Bisleri through their limited-edition packs, and formed partnerships with blockbuster movies such as RRR, Vikram, Jailer, Godfather, PS:1 and 2, among others. “The collaboration strengthened our brand love with consumers and trade partners alike, leading to enhanced business delivery,” he adds.
Tata Tea too came up with a hyperlocal campaign that created a customised marketing mix for different states. This included state-specific packaging featuring local symbols of pride, communication infused with region-specific insights, and targeted media choices to effectively engage with each state’s audience.
Relevance
Today, every sector is said to embrace hyperlocal strategies, including the banking sector. As per experts, for a bank, the branch is the core of the solar system, and all other components are the orb, planets and satellites. Therefore, hyperlocal is helping banks establish a focus on their branches.
MVS Murthy, Chief Marketing Officer, Federal Bank notes, “For a bank, there are many reasons to be hyperlocal, and in some instances, only hyperlocal. Branch opening, strengthening the book size, a local initiative to perhaps care for the environment, a run to celebrate fiscal fitness, scholarships at schools, the skilling of local communities—all of these require hyperlocal marketing.” Talking about the results of adopting hyperlocal, Murthy says, “Empirically, from a Federal Bank perspective, I can tell you that a well-orchestrated hyperlocal campaign can bump up your book by almost 60–70% in a 3-5-week window.”
Experts note that the changing buying behaviour in India necessitates a more personalised and localised approach, which hyperlocal marketing provides, allowing brands to resonate with the unique needs and aspirations of their local customer base.
“Hyperlocal marketing helps brands target their advertising to specific demographics and interests, which can lead to higher conversion rates,” says Sanjeev Jasani, Chief Operating Officer, Cheil India, adding that hyperlocal marketing also supports brands in building stronger relationships with their customers by providing them with relevant and personalised content and offers.
Anika Agarwal, Chief Marketing Officer, Orient Electric while talking about the relevance of hyperlocal marketing shares, “We have a large distribution spread, and we cannot do without hyperlocal campaigns. We execute them with our modern trade partners, and we also do them through Digital.” Today, data and analytics play a crucial role in determining which product is being purchased by which segment of customers in which geography. Thus, promoting brands to come up with contextual and targeted campaigns”. Agarwal adds that hyperlocal strategies have helped brands fetch consumer insight and data, and they have also contributed towards conversions.
Consumer Targeting and Digital Tools
In the realm of consumer targeting, there is an array of sophisticated tools and strategies to pinpoint a brand’s ideal audience. As per industry professionals, targeted advertisements and activations have been proven to be on par with traditional advertisements, and the selective approach is even turning out to be more economical.
Talking about the strategies used by brands to bridge the gap between offline and online units, Abhinay Bhasin, Head of Product Marketing at Profitwheel informs us that earlier, there used to be beacons around hoardings, and if someone moved past a particular hoarding, they would actually get notification on their phone. He adds, “The evolution of Digital has made way for location-based targeting, under which brands are using strategies like geofencing and geo-targeting to announce offers and activations.”
Geotargeting refers to the practice of delivering different content or advertisements to consumers based on their geographic locations. Geofencing, on the other hand, is a location-based technology where brands create virtual boundaries around specific zones or locations to target audiences in that particular locale. Bhasin informs us that there is a growing usage of geofencing statistics and brands are using them to offer discounts at particular pin codes.
As per experts, Digital Out-of-Home (DOOH) has evolved significantly, moving beyond traditional experiential marketing. Speaking about the same, Shashidhar Sharma says, “Unlike earlier approaches with random message broadcasting, DOOH now offers enhanced control and targeting. Collaborating with various partners, we implement geofencing, dynamic creative optimisation, and utilise API integration for effective campaign management.”
Industry members believe that DOOH leverages real-time mobile location data for precise content targeting, enhancing campaign effectiveness. It is being noted that hyperlocal DOOH enables cross-channel campaigns, seamlessly connecting online and offline touchpoints for a true omnichannel experience.
Delving deeper into tools used by brands to target consumers, Mitesh Kothari, Co-Founder and Chief Creative Officer of White Rivers Media states, “In consumer targeting, we employ a variety of advanced tools and strategies to identify a brand’s ideal audience. These tools include demographic segmentation (focusing on factors like age, gender, income, and education), psychographic profiling (considering values, lifestyle, and personality traits), behavioural analysis (based on past interactions and online behaviour), and geotargeting. This multifaceted approach enables brands to tailor their messaging and content to specific groups, resonating on both practical and emotional levels.”
Shivam Ranjan, Head of Marketing, Motorola Asia Pacific while sharing his approach for hyperlocal says, “To drive traffic and footfall, we are trying to target societies that are in catchment areas for retail outlets. Within societies, we plan to use communication that will lead them to the closest outlet.” He further shares that instead of some generic communication, they are using a call to action for a specific store.
Industry professionals believe that hyperlocal marketing empowers brands to provide tailored, contextually relevant experiences to their customers, blurring the lines between online and offline interactions. It is said that this approach not only increases customer engagement but also positions brands ahead of competitors who have yet to leverage their potential.
Giving insights about the setup of hyperlocal, Abbhishek Chadha, EVP – North & East, Interactive Avenues shares that hyperlocal marketing serves as both a marketplace and a framework for businesses to meet local demands. He says, “Hyperlocal operates through three facets: app-driven fulfilment, such as quick commerce and local apps; aggregator-first, as seen in auto services, Zomato, and UC; and brand-driven setups.”
According to industry professionals, hyperlocal marketing takes place in two phases– pre-entering the business vicinity and post-entering the business vicinity. Shradha Agarwal, Co-Founder and Chief Executive Officer of Grapes explains, “In the first phase, when consumers are planning their weekend shopping, Digital platforms are used to strengthen their preference for a particular brand or business. Hyperlocal marketing helps create top-of-mind awareness for nearby brands when purchase intent is at its peak.”
She adds, “In the second phase, offline engagement complements the physical shopping experience and guides consumers towards brands. After carefully planning their weekend shopping, consumers visit a mall or shopping complex with diverse categories. Implementing a targeted, local strategy through various online and offline channels makes your brand an integral part of their purchase journey.”
Notably, web searches also play a crucial role in a hyperlocal setup. According to BrightLocal’s annual survey, 98% of consumers used the internet to find information about local businesses in 2022. The report further highlights that 98% of people read online reviews for local businesses.
Talking about the evolution of hyperlocal alongside Digital, Vinod Kunj, Founder and Chief Creative Officer of Thought Blurb Communications observes,” It began with local businesses registering on online yellow pages and was further perfected with Google My Business pages.” He further says that now you could ask Google for ‘plumbers in my area’, and Google would check your location and give you a set of results.
Himanshu Arya, Co-Founder and CEO of Luxury Ride notes, “Hyperlocal marketing combines online and offline elements, capitalising on mobile’s ‘near me’ searches to target nearby potential customers in a specific area. This strategy enhances online visibility and offers the convenience of visiting the store for a hands-on experience, leading to increased foot traffic. Moreover, it facilitates prompt customer issue resolution, ultimately improving engagement and brand awareness.”
Role of Vernacular and Local Influencers
In order to form deeper connections with their consumers, several brands are notably resorting to the adoption of vernacular content and local influencers in their campaigns, as well as other marketing initiatives. India is so diverse that it is believed that every 100 km, one can find a different language, culture or cuisine. According to experts, campaigns and other marketing initiatives that have familiar faces and language tend to form deeper associations with the population of that geography.
Talking about the same, Sanjeev Jasani says, “Vernacular content is more likely to resonate with consumers than content in English, and by using vernacular content in their hyperlocal marketing campaigns, brands can build deeper connections with their target audience. Local influencers can play a powerful role in hyperlocal marketing campaigns, and by partnering with them, brands can tap into their existing networks and reach a wider audience, making them more relevant and relatable to their customers,” he adds.
Sonia Khurana, Chief Operating Officer, Digitas India recalls, “We have achieved success in hyperlocal marketing by using local influencers and vernacular content, combining online and offline platforms. When Duolingo introduced Bengali to English learning, we did a campaign for it using culturally relevant insights, influencers, and platforms. The campaign propelled the Bengali to English course to occupy the second spot in India.”
Experts discern that leveraging vernacular language and collaborating with local influencers is instrumental in hyperlocal marketing. Notably, brands are recognising the need for regional ad campaigns but they are facing challenges in customisation. “This is where local influencers who communicate in regional languages come into play, boosting organic reach within specific communities and enhancing authenticity. Further, encouraging user-generated content in vernacular languages also fosters inclusivity and organic traction,” says Mitesh Kothari.
It is also being said that tailored campaigns and initiatives are key to unlocking the potential of Bharat. As per media professionals, hyperlocal campaigns in vernacular languages tend to penetrate deeper within a limited geography, eventually widening the reach of the brand.
Talking about tapping into Bharat, Shradha Agarwal shares, “With an increased focus on reaching the consumers of ‘Bharat’, local influencer and vernacular communication allow hyperlocal strategies to engage this audience in a favourable way. Moreover, people are always looking for new experiences and if they’re presented to them in the areas where they live, work or frequent, the results are amplified.”
On similar lines, Vinod Kunj points out that in a country like India, with so many varied cultures and languages, influencers can make a huge difference to the brand. He observes that when brands are targeting a particular group or community, an influencer who speaks the language and understands the ethos of that group is the best option.
Hyperlocal commerce
Industry professionals claim that hyperlocal is not only something that is being looked at as a marketing strategy; it is also a model that defines quick commerce. A WATConsult report estimated there would be 214 million hyperlocal e-commerce shoppers by the end of the calendar year 2022. The report also revealed that hyperlocal commerce shoppers in India account for 48% of all e-commerce users in the country.
It is being forwarded that the hyperlocal approach empowers brands to directly connect with their desired customers, eliminating the need for intermediaries and traditional retail stores in the business model. Notably, hyperlocal platforms also combine the convenience of online shopping with the immediacy of physical stores. Experts note that hyperlocal retail targets customers within a community and caters to them using physical stores, online marketplaces, and mobile apps, providing delivery services within a few miles.
Vinod Kunj says that hyperlocal marketing, once limited to door-to-door leaflets, has evolved with mobile app services. Chains like Domino’s and McDonald’s, along with local players like Licious, now cater to specific pockets within cities. Hyperlocal aggregators like Swiggy and Uber can deliver or pick you up from where you are,” he adds.
The RedSeer Consulting report paints a compelling vision for India’s quick commerce sector, projecting an extraordinary 10-15X surge in growth by 2025. This anticipated expansion is set to propel the market to an impressive $5.5 billion, emphasising the vast scope and lucrative opportunities.
Some experts believe that hyperlocal marketing will soon be used by all businesses. It is a way to make worlds collide. Its strategies are helping brands get a competitive edge by engaging with the right audience in the right context, at the right time, and with optimised ROIs, in this digitally-driven landscape.
