Regional content players struggle with low advertising rates, unfavourable algorithms

Mint

a day ago

Regional content is booming across audio, and video streaming platforms. But for many small players, the growth wave hasn't translated into fair value or visibility.
Despite the surge in hyperlocal, regional-language content across audio and video platforms, smaller creators producing such films, shows, and music say they remain constrained by industry norms that favour mainstream languages like Hindi and English.
A key hurdle: ad rates. CPMs (Cost Per Mille, the cost an advertiser pays for 1,000 impressions) for regional content are usually lower, and smaller creators have little negotiating power. Platforms often offer standard rates, leaving them as 'price takers, not price makers."
Adding to the challenge, algorithm-driven platforms such as YouTube and Meta determine revenue largely on performance metrics — watch time, clicks, and ad returns — rather than on direct deals or custom rates. These algorithms optimise for engagement, but don't always account for the nuances or loyalty of niche audiences.
'CPMs for regional content, especially from smaller language markets like Odia, are significantly lower than those for English or Hindi content," said Kaushik Das, founder and CEO of Odia-language platform AAO NXT.
'The platforms operate on demand-supply economics, and because advertisers aren't always educated on the depth or loyalty of regional audiences, the value ascribed to our content remains limited."
The promise of the internet is that it's democratic, but in practice, it often reinforces existing hierarchies, he added.
Smaller players compete with global budgets, paid promotions, algorithmic bias, and big influencers. Without alliances or paid boosts, getting discovered is an uphill battle.
'Negotiations are minimal unless you're a large network or aggregator. Most of us are price takers, not price makers. We try to build value over time by providing engagement metrics, but the uphill climb is real, especially when you're speaking in a language that isn't algorithmically prioritised," Das added.
Penalised for being niche
Several regional players say the challenge is that they are often penalised for being niche. Algorithms tend to reward volume and velocity over depth of connection, skewing visibility toward larger creators and trending genres.
'Technically, everyone can upload and distribute content. But in practice, discovery is a major challenge," said Vicky Rajani, director of Sai Digital Broadcast Media Pvt. Ltd and owner of Sindhi OTT SINDHIPLEX.
'Algorithms are skewed toward engagement-heavy or viral content, which inherently favours larger creators, trending genres, or language groups. Algorithms prioritise watch time, click-through rate, and ad performance — metrics that aren't always in favour of culturally rich but non-mainstream content."
Rajani added that 'algorithm fatigue" can set in quickly: if initial videos underperform, future uploads receive fewer impressions, creating a vicious cycle.
Income and advertiser bias
Rajat Agrawal, COO and director of Ultra Media & Entertainment Group, which operates Marathi OTT Ultra Jhakaas, agreed that demand for Indian regional languages is limited compared with global ones like English. Advertisers are also more willing to pay for audiences with higher disposable incomes — a challenge for some Indian regional demographics.
Further, creators in finance, technology, and beauty niches tend to earn more globally, while entertainment or general lifestyle content may have lower CPMs.
Entertainment industry experts point out that the sheer volume of content on platforms can make it difficult for creators to stand out and reach their target audience. Also, audiences are scattered across multiple platforms, making it challenging to reach them effectively. Platforms may also impose limitations on content formats, lengths, or types, restricting creators' ability to reach their audience.
At times, algorithms can be opaque, making it difficult for creators to understand why their content is being demoted or not shown to their audience. The nature of algorithms is such that they are constantly evolving, and changes can negatively impact content visibility and reach. Additionally, algorithms can have biases or flaws that unfairly penalise certain types of content or creators.
'The biggest hurdle is breaking through the noise. Algorithms on platforms like YouTube and Meta reward content that is already performing well. This creates a loop where popular content keeps getting more visibility, while new or small creators struggle to get noticed. Once you do get that reach and the content connects with people, the growth can be rapid. But it all starts with reach, and getting that first push is the toughest part," said Ujjwal Mahajan, co-founder, Chaupal, a platform specialising in Punjabi, Haryanvi, and Bhojpuri content.