Bengaluru, March 2
Indian short-form video (SFV) market monetization could be a $8-12 bn opportunity by 2030, according to the latest report by Redseer Strategy Consultants.
This market opportunity comprises of potential $3-$6 billion TAM in advertising on short video platforms, $3-$4 billion from video commerce, and $1.7 billion from live gifting. The report added that shortform content in India has grown 1.37x in terms of monthly active user (MAU) and 1.1x in terms of daily active users from June 2020 when Chinese app TikTok was banned in India.
Globally, Redseer has seen that short-form video platforms and e-commerce platforms have been increasingly focusing on video commerce to enhance customer engagement and boost sales. In India, video commerce has just started, with short-form video platforms expected to capture ~40 per cent of the $8-11 billion video commerce market in 2030.
“Indian SFV apps have seen constant growth in adoption and engagement. Leading players have come close to global players in terms of scale while having similar engagement levels. The report highlighted that with a large and growing population of smartphone users, SFV apps have already gained significant popularity in India. The content library for Indian SFVs is in line with India’s needs – linguistically and culturally diverse,” the report noted.
In comparison to global short form apps like YouTube Shorts, Instagram Reels, Indian apps such as Moj, Josh have a lead on content depth in 3 of the 5 top content genres, with significant difference in offerings around music/dance and dialogue/acting content .
The report also highlighted that the preferred language for content consumption in Indian metro and tier 1 cities is Hindi, followed by English and other regional languages. While regional languages find an audience across India, it’s of key preference in tier 2+ cities only.
For brands too, influencer marketing is becoming an increasingly popular marketing strategy in India. The report projected the marketing spend on influencers to be worth $2.8-3.5 billion in 2028, from current level of $0.35-0.4 billion.
“Currently, brands and influencers mostly engage via intermediary agencies – a model that is broken and lacks efficiency. Agencies may take a significant cut of the compensation for their services, which can reduce the amount of money that influencers receive. And so, there is need for a tech-enabled, transparent and scalable solution. Creator marketplaces can bridge this gap” Mohit Rana, Partner, Redseer Strategy Consultants added.