Urban is a term that may be used in a couple of different ways. The more literal definition of the word urban causes one to think of an object, place or person as being in or related to the inner city. For example, it may be used in this way by saying "New York City, New York is a more urban city than Atlanta, Georgia which seems to be more suburban, since the city of New York has many more high rise buildings, and almost all of the city is clustered together instead of spread out more as Atlanta is.
The word urban is also used by some people mainly companies who are marketing a product, to describe those people who may be of African-American heritage. Many feel that companies are marketing directly to African-Americans who dwell in the inner city without blatantly saying they are by marketing to those that they deem "urban."