How brands are using regional influencers to win over smaller cities

Influencer marketing has consistently served as an effective strategy for brands to engage with their audiences. Recently, influencers catering to tier-2 and tier-3 markets have seen considerable growth in popularity. These influencers are content creators or public personalities who primarily engage audiences from smaller cities and towns. 

Initially, these influencers were mainly associated with regional brands, but they are now preferred by a broader range of companies.

Several factors are driving this shift: the abundance of influencers in metropolitan areas, rising purchasing power in smaller cities, cost-effective collaborations, and the fresh, authentic content these influencers bring to the table.

According to a Meta report, indicates that micro-influencers with 10k to 100k followers are just as influential in driving festive purchases as macro influencers with 100k to 1 million followers. 

A recent example is Swiggy's partnership with influencer Siraj Ashu Bachchan and his team, who added a local twist to Bollywood music by integrating traditional dhol beats. Some of their reels went viral, prompting the food aggregator platform to partner with them.

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Asian Paints collaborated with a variety of influencers, such as Ankit Baiyanpuria, a fitness creator hailing from Sonipat; Rajesh Rawani, a truck driver and YouTube sensation from Jamtara; Santosh Jadhav, recognised as "Indian Farmer,"  a YouTuber based in Sangli; and Harsha Sai from Andhra Pradesh.  

This collaboration aimed to promote its range of NeoBharat Latex Paint.

Viraj Sheth, CEO of Monk Entertainment, an influencer marketing agency that facilitated partnerships for Asian Paints, emphasises that the main objective of working with these influencers is to achieve geographical targeting. "Brands turn to tier-2 influencers to effectively reach specific regions because they connect well with local audiences," he explains.

These influencers typically have a moderate to large following, ranging from thousands to a few hundred thousand, and their content resonates with local or regional audiences. While they may not have the national or global reach of top-tier influencers, they offer high levels of engagement and relatability within their specific regions. Their appeal stems from their ability to connect with niche audiences by creating geographically focused content.

A recent FICCI-EY report indicates that India’s influencer marketing industry is expected to expand from Rs 19 billion (around $227.5 million) in 2023 to Rs 34 billion (approximately $407 million) by 2026. The report highlights a tenfold rise in the demand for regional influencers as brands aim to engage more effectively with consumers in smaller cities.

Sahil Chopra, founder and CEO of iCubesWire, an influencer marketing agency, emphasises that tier-2 influencers offer brands an authentic appeal that top-tier influencers are unable to match. “These influencers deliver higher engagement rates, which makes them appealing for brands seeking to forge meaningful connections with regional audiences,” he says.

Chopra further notes that tier-2 influencers are most effective in sectors such as FMCG, lifestyle, and beauty, where personal experiences and recommendations are crucial.

According to media reports, macro-influencers (with 1–5 lakh followers) from tier 1 cities typically charge between Rs 4–8 lakh per post, whereas mega influencers (with over 5 lakh followers) demand fees that exceed Rs 8 lakh per post.  

In contrast, tier-2 influencers, such as micro-influencers (with 10,000–50,000 followers), typically charge between Rs 8,000–50,000 per post. Mid-tier influencers (with 50,000-1,00,000 followers) generally charge between Rs 40,000-4,00,000 per post. 

Pricing may vary depending on the influencer's appeal and the number of followers they have. For example, Ankit Baiyanpuria commands higher fees than certain leading celebrity influencers because of his unique appeal and robust connection with the general public.

True Elements, a healthy food brand backed by Rohit Sharma, has partnered with Pearle Maaney for the Kerala market and Barsha Raani Bishaya for the Assam market. 

Maaney is an Indian YouTuber and television promoter known for her work in Malayalam shows, while Bishaya has made her mark in Assamese cinema. 

Akshit Salian, a marketing associate at True Elements, notes that the partnership with Maaney in Kerala led to an impressive threefold rise in branded searches. “The post was shared on social media and featured in a YouTube ad, achieving an impressive view-through rate (VTR) of over 55-60% on a skippable ad in that region,” he says.

VTR is a metric that assesses an ad's effectiveness by determining the percentage of viewers who watch it from beginning to end.

Salian recommends that brands expand their use of influencers beyond Instagram, suggesting that their imagery be employed in modern trade stores and general stores on shelves and banners to foster a more genuine partnership.

He adds that influencer selection should consider online and offline popularity. Working with "internet-famous" personalities might not produce successful outcomes when trying to engage older audiences.  

It will be intriguing to see how brands utilise this varied group of influencers to forge captivating partnerships. As the influencer marketing landscape evolves, companies have unique opportunities to engage with distinct voices and regional appeal by leveraging tier-2 and -3 influencers.