Indian short form video market to touch $8-12 billion by 2030: Report
1 min read 03 Mar 2023, 11:42 AM ISTThe report 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.
PremiumNew Delhi: The Indian short-form video (SFV) market could potentially be an opportunity of $8 billion to $12 billion by 2030, according to a report by tech and data-driven consultancy firm Redseer Strategy Consultants.
For brands, influencer marketing is becoming an increasingly popular strategy in India. The report projected marketing spend on influencers to be worth $2.8 billion to $3.5 billion in 2028, from the current $0.35-0.4 billion.
As of now, short-form videos account for less than 1% of digital ad dollars though it contributes 7-10% of overall time spent on content.
Indian app users are representative of Indian population, compared to global app users, which are over indexed on metros and tier-one cities. About 83% of users in India come from tier-two towns and beyond. While regional languages find an audience across India, it’s of key preference in tier-two plus cities.
Indian SFV apps have seen constant growth in adoption and engagement, leading players have come close to global players in terms of scale while having similar engagement levels. Time spent per daily active user stood at 26 minutes for an average Indian player, same as a global entity.
Content library for Indian SFVs are in line with India’s needs, with 51% of users preferring music and dance-related content on such apps.
Brand ads conversion via influencers is high, and fashion is among the most popular categories being sold. Brands which traditionally created lengthy ads have now started depending increasingly on influencers for their ad spends due to higher effectiveness.
“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 need for a tech-enabled, transparent and scalable solution. Creator marketplaces can bridge this gap", Mohit Rana, partner, Redseer Strategy Consultants said in a statement
