MIB opens digital ad doors for startups and MSMEs

MUMBAI: The government’s digital ad club just got a little less exclusive. In a move aimed at widening the playing field, the Ministry of Information and Broadcasting (MIB) has amended the Digital Advertisement Policy 2023 to allow eligible startups and MSMEs to participate in government digital campaigns through a separate empanelment route. The amendment, approved on May 8, 2026, tweaks Part E of the policy, which governs how media agencies qualify for government digital advertising work. Under the revised rules, the Central Bureau of Communication (CBC) can now create a dedicated “Base Panel” for eligible micro and small startups and MSME entities through a separate Request for Proposal (RFP) process.

In simpler terms, smaller digital agencies and startups that previously struggled to match the scale and experience requirements of larger players may now get a clearer shot at government business.

The new Base Panel will sit alongside the existing Category I and Category II agency framework under the Digital Advertisement Policy 2023. It will cover digital campaigns across websites, OTT platforms, social media channels, mobile apps and other online platforms where government messaging increasingly competes for attention.

To qualify, entities must have an average annual turnover between Rs 2 crore and Rs 20 crore. They must also hold either a valid DPIIT Startup recognition certificate or an Udyam registration, while having operated for at least one year.

The policy also gives CBC room to relax certain eligibility norms around prior experience, campaign scale and social media network relationships, subject to approval from the Director General or Principal Director General of CBC. That flexibility could prove crucial for younger digital-first agencies still building scale but already strong on execution and platform understanding.

There is, however, a pricing catch. Agencies empanelled under the Base Panel will receive rates fixed at 75 per cent of the L-1 rates discovered for Category II agencies. Their empanelment tenure will remain aligned with the tenure of existing Category I and II agencies.

The advisory issued by CBC on May 18 noted that the revised framework accompanies the original Digital Advertisement Policy 2023, first notified on November 9, 2023.

The timing reflects a broader shift in India’s advertising ecosystem, where smaller specialist agencies, creator-led firms and performance marketing startups are increasingly punching above their weight. Government campaigns too have moved far beyond newspaper columns and television spots, with social media reels, influencer-led outreach, OTT integrations and digital-first storytelling becoming central to public communication strategies.

For India’s growing startup and MSME ad ecosystem, the amendment may not instantly level the field, but it certainly opens the gate a little wider.