37% of Tier 3 consumers rely on YouTube reviews; celebrity influence drops to 3%: Report

YouTube has emerged as the primary product discovery platform in India’s Tier 3 markets, with 37% of consumers relying on YouTube reviews at the start of their purchase journey, according to a report by early-stage consumer brand investor Rukam Capital.

The study found that 32% of consumers discover new products through social media platforms, while 23% trust creator recommendations. In contrast, celebrity endorsements influence only about 3% of consumers, overturning long-held assumptions around aspiration-led advertising in non-metro India and underscoring the growing importance of relatability, product demonstrations and lived experiences.

Community validation remains a strong factor, with 22% of consumers across Tier 2 and Tier 3 markets influenced by word-of-mouth. The report also challenges the notion of impulse-led buying behaviour in smaller towns. As many as 43% of Tier 3 consumers verify brands through official websites before making a purchase, while 32% consider customer service interactions as part of their decision-making process—positioning transparency and service as key pre-purchase trust signals.

Digital payments are now deeply embedded in non-metro consumption patterns, with 67% of consumers across Tier 2 and Tier 3 markets using UPI as their primary transaction mode. While discount-led shopping remains important in Tier 2 markets—52% of consumers actively track sale days and promotions—festivals continue to play a bigger role in shaping discretionary spending in Tier 3 regions.

OTT consumption is driven by mass moments and vernacular relevance. JioHotstar leads OTT usage with over 54% penetration across Tier 2 and Tier 3 markets, while 24% of Tier 3 consumers prefer vernacular OTT platforms, reinforcing the importance of language-first content strategies.

Music streaming apps record over 46% adoption across non-metro markets, while messaging platform Telegram also sees 46% usage among Tier 3 consumers, reflecting changing content discovery and communication habits.

The survey was conducted in collaboration with YouGov and covered more than 5,000 respondents across 18 states, spanning urban and semi-urban populations.

“For a long time, Bharat has been viewed through a metro lens,” said Archana Jahagirdar, founder and managing partner at Rukam Capital. “This study shows a confident, deliberate consumer—one who researches deeply, relies on community validation, and values consistency over hype.”