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Urban-rural digital divide blurs as short-form video drives consumer spending in India

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The urban-rural divide in India’s digital video consumption has virtually disappeared, with short-form video platforms evolving from mere entertainment hubs into significant drivers of consumer purchasing decisions, according to a report.

A study commissioned by Meta — the parent company of Facebook, Instagram, and WhatsApp — indicates that daily video engagement on Meta platforms is nearly identical across geographies, standing at 98% in urban areas and 94% in rural India.

Overall, 97% of surveyed users in the country watch videos on the platform daily.
Meta surveyed over 4,000 respondents across 23 cities, encompassing metropolitan centres, Tier-2 and Tier-3 cities, as well as rural regions. Moving away from traditional perception of short-form video as solely a medium for youth entertainment, the findings highlight a distinct shift towards content-to-commerce.

The report noted that reels — Meta’s short-form video feature — now drives 81% of product discovery, 66% of brand consideration, and influences 47% of final purchase decisions among its users.

”India’s video boom isn’t urban-led anymore — it’s nationwide, cutting across GenZ, women and premium audiences. Creators, culture and commerce are converging on reels in ways we haven’t seen before. For brands, this isn’t just a content play — it’s an always-on content-to-commerce play. Reels are where discovery starts, trust is built, and purchase decisions are made,” Saugato Bhowmik, Director, CPG, D2C, Automotive (India) at Meta, said.

The study revealed that the influence of creator-led content extends beyond typical retail categories into high-intent sectors such as e-commerce, automotive and financial services. The behavioral shift is heavily driven by younger demographics and women.

According to the data, 89% of Gen Z audiences and 85% of women view reels daily.

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