Indian short-form video platform crosses $200 million revenue mark
New Delhi| The Indian short-form video (SFV) platform has crossed the $200 million revenue mark. According to information given in a report on Wednesday, the SFV platform helped in moving forward with monetization, influencer marketing, video commerce and virtual tipping. India’s SFV market has added close to 250 million monthly users, reports RedSeer Strategy Consultants.
With this, since the ban on Chinese TikTok in mid-2020, SFV platforms have increased daily active users by 3.6 times. With this boom, SFV platforms have also now made their place as mainstream entertainment modes. According to the report, more than 63 percent of SFV engagement comes from cities in Tier 2 and beyond. These platforms have now become an important part of India’s digital landscape.
“India’s digital advertising market is set to grow rapidly, with a projected nearly doubling to reach $16-17 billion by FY2029″, said Mukesh Kumar, associate partner at RedSeer. It will have video advertising as the fastest growing advertising format.”
Earning $95-100 million in FY 2024, Ad Revenue currently accounts for 1-2 per cent of India’s digital ad spending. As platforms move towards performance marketing. Advertising is expected to expand with this. The report said that due to the popularity of micro and macro influencer people, the influencer will reach $3-4 billion in marketing by FY2029.
The trend of tipping has also increased. Currently with $80-100 million it is projected to reach $700-800 million by FY2029. The trend of tipping has increased among viewers watching live streaming in the last 12 months. Indian users spend around Rs 100 monthly on tips, it provides support for Avenue Creators and Influencers.
Video commerce is expected to reach $5 billion by FY2029 with increasing maturity between users and user-influencer connections on India’s SFV platform, the report said. On average, users now spend 30 minutes a day on India’s SFV platform, reflecting a shift towards a user friendly interface, personalized and high-quality content.
“Over 50 percent of SFV users are monetizable, and their spending often goes toward e-commerce, OTT, in-app purchases, and paid gaming services”, the report said. With about 30 percent of monthly income earmarked for spending, SFV users are well positioned to support these monetization models, the report said. With more than 99 percent original content, Indian SFV platforms offer a wide variety of genres, catering to the likes of different users.
