Why Hyperlocal Apps Must Scale Retargeting This Festive Season

India's digital landscape is undergoing a significant transformation, with hyperlocal apps emerging as pivotal players in reshaping consumer behavior. The hyperlocal delivery app market is projected to generate revenues of $1.7 million in 2024, expanding at a robust CAGR of 22.6% over the next decade. This surge is fueled by the increasing adoption of on-demand services and advancements in digital logistics technologies, leading to faster, more efficient, and reliable hyperlocal deliveries in urban and semi-urban areas.

Simultaneously, the rise of dark stores - small, localized warehouses designed for rapid order fulfillment - is revolutionizing the quick commerce sector. As of mid-2024, Blinkit, for example,  operates over 1,500 dark stores. This infrastructure enables hyperlocal apps to offer swift deliveries, meeting the growing consumer demand for convenience.

User engagement metrics further underscore the significance of this sector. With over 850 million smartphone users in India as of 2024, and more than 70% of internet consumption occurring via mobile devices, hyperlocal apps are uniquely positioned to leverage mobile-first strategies to drive user engagement and retention.

Festive Demand and Hyperlocal Apps

Across India, the festive activity is surging as we approach Diwali, a time when in-app activity shapes consumption trends for mobile-first brands. App usage surges in waves, shaped by local calendars and cultural cues. Hyperlocal apps play a crucial role in this ecosystem by offering rapid delivery of essentials, gifts, and festive items, capitalizing on the increased demand for convenience and speed. The rise of dark stores has further amplified this capability, enabling platforms to fulfill orders within minutes and cater to the time-sensitive needs of consumers during the festive rush.

Retention, however, remains a challenge. Among hyperlocal apps, early festive installs saw a 40% drop-off by Day 7, particularly in food delivery and local commerce categories despite having a strong install momentum. This uneven pattern has made re-engagement a central concern. Retargeting helps apps reconnect with users who drop off after install—whether they browse, bounce, or pause. Last year’s festive season saw 60% of shopping and utility apps revenue generated after the initial festive peak, underscoring the value of post-peak reactivation.

5 Retargeting Priorities for Hyperlocal Apps This Festive Season

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  1. Reactivate Users within the Critical Time Window
• Hyperlocal demand is urgent. Users often order last-minute essentials or groceries and may drop off if delivery promises aren’t met. Retargeting enables apps to reach users within minutes of app abandonment or incomplete checkout, nudging them with real-time offers or delivery guarantees. This ensures that short-lived intent is captured before it disappears, a key advantage in time-sensitive, festive demand spikes.
  
  

•  2. Shift to Dynamic Audience cohorts for Personalization

• In hyperlocal apps, every second counts. Real-time data such as time of day, day of the week, weather, or recent search behavior can guide
• retargeting. For example, a user who checked milk and snacks around evening hours can be prompted with a “Deliver in 30 mins” offer. Unlike traditional eCommerce, personalization here is ultra-contextual and action-driven, converting urgent intent into orders quickly
  
  

• 3. Leverage Geo-Targeted, Localized Campaigns

• Festive needs vary regionally, and hyperlocal apps succeed by aligning offers to nearby inventory and local preferences. Retargeting campaigns should be geo-aware, pushing relevant notifications based on the user’s location relative to nearby dark stores. For instance, users in a specific neighborhood could receive instant alerts for available Diwali sweets or daily essentials, increasing the likelihood of immediate purchase.
  
  

• 4. Measure Incremental Conversions, Not Just Engagement

• Festive budgets for hyperlocal apps are high, but every notification or push must deliver immediate ROI. Incrementality testing allows apps to determine which retargeting campaigns actually drive completed orders versus simply generating clicks. By measuring true short-term conversion lift, marketers can optimize campaigns in real-time, ensuring maximum efficiency during peak demand bursts.
  
  5. Automate Creatives with Contextual Relevance
• Festive fatigue is real. Users see hundreds of similar offers and visuals. mDSP can aid in  automating creative refreshes using product feeds, behavioral triggers, and regional motifs. For hyperlocal apps, this means deploying vernacular variants, seasonal color palettes, and offer-led visuals that feel timely—not templated. Real-time testing ensures that underperforming creatives are swapped out instantly, keeping engagement sharp across the festive arc.
  
  

Retargeting: The Engine Behind Festive Continuity

The festive season is a peak moment for hyperlocal apps, defined by short bursts of intense demand.  In a market where convenience is king and attention spans are short, retargeting is a tool that turns seasonal spikes into sustainable success. By leveraging geo-targeting, real-time personalization, and optimized multi-channel alerts, hyperlocal apps can capture urgent demand and sustain engagement throughout the festival period.

Scaling retargeting this festive season allows hyperlocal apps to maximize conversions, reinforce customer loyalty, and turn fleeting festive activity into measurable growth. mDSP’s retargeting solutions are built for emerging markets, offering: 

• - Robust & privacy-compliant consumer data platform  
• - Advanced reporting
• - Creative enhancement
• - ROI-focused bidding prioritization 

If you'd like to start retargeting with a fully-equipped programmatic DSP to capture more than just festive demand, contact us at marketing@mdsp.co