As per a recent report by Redseer, homegrown short video platforms in India have a massive user base of over 25 crore, out of which approximately 65 per cent belong to tier-two cities and beyond.
This is a significant development as it has furthered the ambit of digitization in India and is maximizing value for platforms, brands and end-users through its data-led and language-inclusive approach.
Additionally, 40 per cent of users have been conducting online transactions on these platforms, opening up a plethora of opportunities for monetization.
While global short-form video (SFV) platforms may be popular among urban users, Indian SFV platforms have registered greater uptake among audiences in non-metro and semi-urban areas. This can be attributed to the availability of quality regional-language content created by local talent. In fact, around 45 per cent of Indian SFV users reside in semi-urban and rural centers and interact with a diverse set of internet platforms ranging from gaming to e-commerce. This is a positive development as it shows that India's SFV landscape is inclusive and caters to a wide range of audiences.
“The growing popularity of Indian SFV platforms is a welcome development as it has furthered the ambit of digitization in India and is maximizing value for platforms, brands and end-users through its data-led and language-inclusive approach. With the rise in disposable income among the dominantly tier-two plus users, India’s SFV landscape holds multiple possibilities for monetization. New-age models like live commerce and live gifting can prove to be feasible in raising the bar for monetization," said Mukesh Kumar, associate partner at Redseer in a statement.
The report by Redseer also highlights that on Indian SFV platforms, 64 per cent of the user base comprises individuals up to the age of 25 years, indicating that the younger generation is driving the growth of these platforms. Furthermore, SFV platforms are home to original and relatable content, which has grown to 99 per cent in 2023, in comparison to 92 per cent in 2022, according to the report.
The rising popularity of user-generated content platforms has led to the creation of an ecosystem of 3.5 million influencers or new-age celebrities who are driving the growth of SFV platforms. These influencers can be classified into four archetypes, namely micro, macro, mega, and elite, who can earn more than Rs 1.5-2 lakh per month through advertising and live commerce. As the platforms mature, their earnings diversify across platform payouts, brand deals, and virtual gifting.
The report further indicates that brands across categories are beginning to utilize homegrown SFV platforms given their value proposition, growing user base especially in tier-two plus regions, monetization potential, and the volume of online transactions.
Currently, beauty and personal care (BPC) as well as fashion are already collaborating with new-age influencers to tap into larger audiences. Despite an ongoing funding winter in the startup landscape, advertorial spending is gradually stabilizing across SFV platforms, and experimentation is underway to identify the model of advertising that can provide maximum return on investment, according to the report.