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Home Analysis

Short-form video platforms have high engagement rates and user stickiness

by MN4U Bureau
April 23, 2021
in Analysis, Featured
Reading Time: 2 mins read
A A
Indian shortform apps have a monetization opportunity of $19Bn by 2030: Redseer
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RedSeer Consulting released their latest report titled,  ‘Short-form video- The Rise of Made in India digital content’.

The report explores how India continues to ride on a strong digital wave and how the digital content sector has been the largest gainer.

According to the report, the Short-form video user base is back to nearly 100% of the pre-TikTok ban, with strong loyalty to Indian apps.

The report further explores the reasons for the growth of  Short-form Video Platforms.

The Indian Short-form video platforms support more than 10 languages and help brands in reaching unexplored language-dominated markets.

41% of the users of the Indian Short-form platforms are between the 16- 24 years of age group.

The platform helps new age and FMCG brands in targeted advertising. There are various ad formats that are available for the advertisers to choose from. The Short-form video platforms have high engagement rates and user stickiness. The rates for advertising on these platforms are lower compared to other social platforms. CPM rates for TikTok are as low as $1 whereas it can go as high as $4 for Facebook’s news feed and stories.

What are the factors that interest the brands/advertisers?

  • Extending brand reach- To capture the audience not available on other platforms
  • Diverse regional languages- Presence of content in vernacular language helps to reach a wider audience
  • Low Cost of Production- Advertisers incur the low cost of production as compared to other platforms
  • Brand building- Immense opportunity for influencer marketing

What are the factors that can be worked on by the platforms?

  • Lack of Awareness of brands- Advertisers need to be made aware of advertising opportunities on short-form platforms
  • Need to on-board big influencers- Collaboration with big influencers/celebrities for higher traffic
  • Higher Transparency by platform- Platforms to provide more transparency in admeasurement/engagement
  • Fragmented Market- The short-form platform market is highly fragmented with a lack of advertiser awareness around competitive positioning
Tags: RedSeerRedseer ReportTikTok

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