Tiktok was banned in 2020, which left a significant content gap. That has now been filled by several Indian and international Short-Form Video (SFV) platforms. Offering bite-sized entertainment, these platforms are paving the way for a newer and more nuanced form of advertising and content consumption.
Homegrown SFV platforms currently have a user base of over 250 million, with around 65 pc of them hailing from Tier-2 cities and beyond. Around 40 pc of the users conduct online transactions on these platforms, making opportunities for monetisation manifold. Monetisation facilities across ecommerce, online gaming, and OTT video streaming sites are gaining popularity among users.
Global SFV platforms are popular among urban users but Indian platforms have witnessed greater uptake among audiences in non-metro and semi-urban areas mostly owing to the availability of regional-language content.
Redseer’s research shows around 45 pc of Indian SFV users reside in semi-urban and rural centres and interact with a diverse set of internet platforms ranging from gaming to eCommerce.
Mukesh Kumar, Associate Partner, Redseer, said, “The growing popularity of Indian SFV platforms is a welcome development as it has furthered the ambit of digitisation in India and is maximising 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-2 + users, India’s SFV landscape holds multiple possibilities for monetisation. New-age models like live commerce and live gifting can prove to be feasible in raising the bar for monetisation.”
Redseer’s research report also revealed that around 64 pc of the user base on Indian SFV platforms was individuals up to the age of 25 years. Less than 3 pc of Indian SFV users are mature users.
Content led by the ‘hook and hero’ narrative is effective in reaching out to diverse user demographics. SFV platforms have original and relatable content, which has grown to 99 pc in 2023, in comparison with 92 pc in 2022. An approximate 70 pc content relevance rate enables material to reach appropriate demographic or interest group. Additionally, India’s SFV platforms are investing in Content Moderation Processes which has led to inflammatory material taking up less than 0.5 pc of the total content.
Provisions to prevent repetition of content, and promote diversity across genres have directly contributed towards increased engagement rates among audiences. Indian SFV platforms have seen an increase in Net Promoter Score to around 55 pc, making them a tool for advertisers to watch out for.
Users rate SFV platforms highly along many experience parameters including Content Quality, UI/UX, Data Privacy, Loading Time and Quality of Influencers, among others. The leading performer in the ecosystem exhibited ratings between 8.2-8.6 on an 8.6-point scale.
The rising popularity of UGC content platforms has created an ecosystem of 3.5 mn influencers who serve as the growth engine of SFV platforms. These influencers can be classified into four archetypes namely Micro, Macro, Mega, and Elite and can earn more than INR 1.5-2 L per month through advertising and live commerce.
Brands across categories are beginning to utilise homegrown SFV platforms given their value proposition, growing user base, monetisation potential and the volume of online transactions. Beauty and Personal Care and Fashion segments are already collaborating with new-age influencers to tap into larger audiences.
The current crop of advertisers can unlock a lot of value through the incorporation of SFV platforms in their strategies. Given their cost efficiency, higher rates of engagement and the sheer density of audiences that they cater to, SFV platforms are hard to miss. They typically have higher Click-through Rates (CTR) than other content platforms. The higher reach of SFV platforms coupled with lower Costs per Mille (CPMs) lead to reduced Costs per Click (CPCs).
Indian SFVs have significant time share and mind share of Bharat users making it a highly effective platform for reaching with them in a cost-effective manner.
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