Indian short-form video platforms boom with 250M users: Redseer
About 65-70% of users of short-video platforms hail from Tier II cities and semi-urban and rural centres. Monetisation possibilities abound on these platforms, says a report by Redseer Strategy Consultants.
Homegrown short-form video (SFV) platforms have a user base of about 250 million, with approximately 65-70% of them hailing from Tier II cities and semi-urban and rural centres, according to a report by Strategy Consultants.
The report titled 'Demystifying India’s SFV Platforms' indicates that around 40% of users are engaging in online transactions on these platforms, opening doors for various monetisation avenues. Monetisation opportunities in ecommerce, online gaming, and OTT video streaming are rapidly gaining popularity among users, says the report.
“With the rise in disposable income among the dominantly Tier II + users, India’s SFV landscape holds multiple possibilities for monetisation. New-age models like live commerce and live gifting can prove to be feasible in raising the bar for monetisation,” said Mukesh Kumar, Associate Partner at Redseer, in a statement.
User generated influencers have gained prominence, with 3.5 million influencers categorised as micro, macro, mega, and elite. These influencers can earn substantial income through advertising and live commerce, diversifying their earnings across platform payouts, brand deals, and virtual gifting, says the report.
User engagement
The findings reveal that the key to user engagement lies in providing original, relatable, and non-inflammatory content with low repetition rates, resulting in a net promoter score of around 55% for Indian short-form video platforms.
The TikTok ban in 2020 created an opportunity for both Indian and international short-form video platforms, which now offer bite-sized entertainment to diverse audiences, forming new ways for advertising and content consumption, says the report.
While global platforms remain favoured among urban users, Indian platforms have gained traction in non-metro and semi-urban areas due to the availability of quality regional-language content created by local talent.
Redseer's research shows that approximately 45% of Indian users reside in semi-urban and rural areas, engaging with a wide range of internet platforms, from gaming to ecommerce.
Demographic analysis reveals that nearly 64% of Indian short-form video platform users are aged up to 25, with mature users accounting for less than 3%. Content centred on the 'hook and hero' narrative has proven to be effective in reaching diverse user demographics. Indian platforms have seen a surge in net promoter score to around 55%, making them a promising tool for advertisers.
Moreover, machine learning/natural language processing algorithms embedded within these platforms ensure high accuracy in content tagging.
Advertorial spending
Despite the ongoing funding challenges in the startup landscape, advertorial spending is stabilising across short-form video platforms, and experimentation is ongoing to maximise return on investment.
The report also states that cost-efficiency, higher engagement rates, and extensive audience reach of these platforms make them a compelling choice for advertisers. They typically achieve higher click-through rates due to more engaging, shorter, and non-intrusive ads.
Edited by Swetha Kannan