Homegrown short video platforms clock user base of over 250 million: Report

New Delhi: Homegrown short video platforms currently have a user base of over 250 million of which around 65% come from tier two cities and beyond, according to a report by consultancy firm Redseer.

As 40% of users transact online on these platforms, there are many opportunities for monetization, the report said.

While global short-form video (SFV) platforms may be popular among urban users, Indian SFV platforms have grown among viewers in non-metro and semi-urban areas mainly due to availability quality regional content in a regional language created by local talent. . About 45% of Indian SFV users live in semi-urban and rural centers and interact with a diverse set of internet platforms from gaming to e-commerce.

“The growing popularity of Indian SFV platforms is a good thing as it has advanced the scope of digitization in India and is extracting the best possible value for platforms, brands and end users through its data-driven and language-inclusive approach. With the increase in disposable income among the mostly tier two plus users, India’s SFV landscape has multiple possibilities for monetization. New-age models like live commerce and live giveaways can make it possible to raise the bar on monetization,” said Mukesh Kumar, associate partner at Redseer in a statement.

Additionally, 64% of the user base on Indian SFV platforms consisted of individuals up to 25 years of age. Less than 3% of Indian SFV users are mature users.

SFV platforms live with original and relatable content, which is seen to increase to 99% in 2023, compared to 92% in 2022, the report said.

The growing popularity of user-generated content platforms has helped create an ecosystem of 3.5 million influencers or new-age celebrities that act as the growth engine of SFV platforms. These influences can be classified into four archetypes, namely micro, macro, mega, and elite who can earn more than that. 1.5-2 lakh per month through live advertising and commerce. As the platforms mature, their earnings diversify across platform payouts, brand deals and virtual gifts.

Brands across categories are starting to use native SFV platforms given its value proposition, growing user base especially in tier two regions, monetary potential and volume of online transactions. Currently, beauty and personal care (BPC) as well as fashion are already collaborating with new age influencers to tap into a larger audience. Despite an ongoing funding winter in the startup landscape, ad spending is gradually stabilizing across SFV platforms, and an experiment is underway to identify the advertising model that can provide the greatest return on investment, the report said.

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Updated: 08 November 2023, 03:32 PM IST

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