The report added that the revenue opportunity is spread across three segments – advertising, video commerce, and live gifting.
The size of the advertising opportunity for the short-form video apps is pegged at $3-6 billion followed by video commerce at $3-4 billion.
The report also highlighted that virtual gifting on these platforms is expected to become a $1.7 billion opportunity by 2030.
As per the report, Indian short-form video apps have seen consistent growth in adoption and engagement with leading players coming close to global players in terms of scale while having similar engagement levels.
It projected the marketing spend on influencers to be worth $2.8-3.5 billion in 2028, from the current level of $0.35-0.4 billion. It added that there is a need for a tech-enabled, transparent, and scalable solution for influencers and brands to engage.
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The report also observed that user-generated content (UGC) platforms are developing creator marketplaces that can become a centralized network for creators to connect with brands.This can benefit both creators and brands, as it provides a platform for creators to showcase their work and for brands to find suitable creators to work with, it noted.
“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 a need for a tech-enabled, transparent, and scalable solution. Creator marketplaces can bridge this gap,” says Mohit Rana, Partner, Redseer Strategy Consultants.
The report noted that the content library of short-form video apps is linguistically and culturally diverse, the report says adding that the Indian apps have a lead over global short-form apps on content depth in 3 of the 5 top content genres like art/creativity, comedy, and music/dance.
Furthermore, the report showed that the preferred language for content consumption in 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.
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