Get ready for the next stage of India's short video app evolution | WARC | The Feed

Get ready for the next stage of India's short video app evolution

Short-video apps currently take only a 1% share of India’s digital advertising expenditure, but a new report suggests that figure could rise to as much as 20% by 2030.

Context

When TikTok was forced to exit the country in mid-2020, homegrown short-video apps were quick to step into the breach and siphon off its 200 million users. Two years on and the focus is starting to switch from accruing users to monetising them. 

Takeaways 

• A study from RedSeer Consulting, reported in the Economic Times, posits a $19bn opportunity across three revenue streams – advertising, video-commerce and gifting – with advertising accounting for roughly a third of the total.
• Local short-form video apps currently have a total monthly active user base of around 300 million which Redseer predicts will double to 600 million by 2025 and treble to 900 million by 2030.
• Indian users consume almost 38 minutes of short-form content every day; 59% are from rural and semi-urban towns.

Key quote

“Indian short form apps are witnessing strong growth as compared to other established platforms, this can be attributed to their low decision fatigue, language localization, recommendations, genre variety and local creator influence” – Mohit Rana, partner at RedSeer Consulting. 

Sourced from Economic Times