Metro vs Regional Advertising: How to Choose the Right Markets for Growth

Metro vs Regional Advertising: How to Choose the Right Markets for Growth 

Quick take 

• The best market choice isn’t “metro vs regional”. It’s where can we win next based on demand, competition, and your ability to service the area. 

• Many small businesses get better results by starting with one clear market, learning fast, then expanding. 

• If you can’t explain why you’re in a market in one sentence, you’re probably wasting budget. 

• Market selection is one of the fastest ways to improve results without increasing spend. 

Why market choice matters more than most people think 

 
A lot of campaigns underperform for one simple reason: they’re running in places the business can’t realistically win. 
 

 Common examples: 

• advertising metro-wide when you only service a handful of suburbs 

• spreading budget across too many regions so nothing gets enough weight 

• choosing markets based on “where we’d like to grow” instead of “where we can convert demand now” 
  Market choice affects everything: 

• how much weight you can afford 

• how quickly you build momentum 

• how easy it is to measure uplift 

Metro vs regional: what’s actually different? 

 
Metro markets 
 

 Metro advertising can be powerful because: 

• there’s usually more demand 

• there are more customers to reach 

• you can scale bigger 
  But metro can also be harder because: 

• competition is often higher 

• you may need more weight to be noticed 

• service coverage can get messy (logistics, sales coverage, delivery times) 

Regional markets 
  

Regional advertising can be powerful because: 

• you can often own a market faster 

• competition can be lower 

• word of mouth and brand recognition can build quickly 
  But regional can be harder because: 

• demand may be smaller 

• you need to pick the right towns/areas (not “regional” as a blob) 

• your offer and service model still need to fit 

The Top 5 framework: how to choose the right markets 

Start with your existing data: where are your best customers coming from now, where do you have the strongest reputation, where do you convert fastest? 
 

If you’re choosing between two markets, the one with proof usually wins. 

 
Ask: can we actually deliver/fulfil quickly in this area, do we have sales coverage here, do we have capacity to handle more demand? 
  

If the answer is “sort of”, don’t advertise it yet. 

 
Look for: enquiry trends by location, store traffic by location (if relevant), search demand and “near me” patterns, competitor presence (a proxy for demand). 

 
Ask: are you meaningfully different, do you have proof, can you out-message them (clearer offer, clearer positioning)? 
 

If you’re “same same”, pick a different market or fix the offer first. 

Ask your planner: what’s the minimum viable weight in this market for this channel, what does “too light” look like? 

 
If you can’t afford enough weight, choose a tighter market. 

A simple way to decide: start narrow, then expand 

• Pick one market with the best chance of success 

• Run a clean test with enough weight to create a signal 

• Measure uplift (not just last-click) 

• Expand to the next market once the message is proven 
    

This is how small businesses scale without burning budget. 

How market choice changes by channel (quick guide) 

 
TV and streaming TV 
  

Great for building demand and credibility 
  

• Market choice should match your real trading area 

• Often best to start in one region/state, then expand 
    

Related read: Is TV Affordable and Worth It for Small Business? (When It Works and When It Doesn’t). 

Radio 
  

• Strong for local reach and frequency 

• Great for regional and metro (when planned properly) 

• Works best with a clear offer and consistent schedule 

Outdoor 
  

Best when you can target high-traffic areas that match where customers live/work 
Market selection is everything (wrong location = wasted spend) 

Digital (search and paid social) 
 

Can cover multiple markets, but messaging and landing pages should still reflect the market 

 
“Australia-wide” campaigns often underperform if the business isn’t truly national 

Measurement: how to know a market is working 

Track uplift signals by market (not just overall): 

• Enquiry volume and quality by location 

• Branded search lift in the market (directional) 

• Direct traffic lift (directional) 

• Conversion rate changes where stable 

• Sales feedback (“Are we getting the right types of enquiries from this area?”) 
  If you can, compare: 

• Market A (advertising on) vs Market B (advertising off) 

• Heavier-weight markets vs lighter-weight markets 
   

The goal is to make market decisions easier: keep, change, expand, or stop. 

Common market selection mistakes 
  

• Choosing markets because they’re “big” (not because you can win) 

• Advertising too broadly (metro-wide) when your service area is narrow 

• Spreading budget across too many markets so nothing gets enough weight 

• Not aligning market choice to channel (e.g., buying outdoor in the wrong commuter corridors) 

• Measuring only last-click and missing uplift 

A simple market selection checklist (copy/paste) 

• Do we have proof we can win here (customers, reputation, conversion)? 

• Can we service demand properly (capacity, delivery, sales coverage)? 

• Is demand visible (enquiries/search/competitor presence)? 

• Is competition beatable (clear offer, clear differentiation)? 

• Can we afford minimum viable weight in this market? 

• Do we have a measurement plan by market? 

FAQS: metro vs regional advertising 
 

Is regional advertising cheaper? 
Sometimes, but “cheaper” doesn’t mean “better”. The right market is the one you can win with enough weight to be noticed and a clear path to conversion. 

Should small businesses start metro or regional? 
Start where you already have proof and operational coverage. Many businesses win by starting in one clear market, learning fast, then expanding. 

Can we advertise in multiple markets at once? 
Yes — but only if you can afford enough weight in each market to create a signal. Otherwise, it’s usually smarter to start with one market and expand. 

Recommended Further Reading 

How Much Does TV Advertising Cost in Australia for Small Business? 
How Much Does Radio Advertising Cost in Australia for Small Business? 
How Much Does Outdoor Advertising Cost in Australia for Small Business? 
Questions to Ask Before Hiring a Media Buying Agency (Small Business Checklist) 

 If you want help choosing the right markets (metro vs regional) with confidence — and building a plan that’s commercially clear and easy to measure — our team are here to help. Get in touch.