Bengaluru, Nov 20, 2024, IANS

Bengaluru, Nov 20 (IANS) Indian short-form video (SFV) platforms have crossed $200 million in revenue, with a huge headroom for growth via monetisation including influencer marketing, video commerce and virtual tipping, a report showed on Wednesday. India’s SFV market now engages close to 250 million monthly users and since the ban of Chinese TikTok in mid 2020, SFV platforms have seen a 3.6 times increase in daily active users, establishing themselves as a mainstream entertainment format, according to a Redseer Strategy Consultants report. With over 63 per cent of SFV engagement coming from tier 2 and beyond cities, SFV platforms are deeply embedded in India’s digital landscape, it added. “India's digital advertising market is set for exponential growth, projected to nearly double by FY2029 to reach $16-17 billion, with video advertising leading the way as the fastest-growing ad format,” said Mukesh Kumar, associate partner at Redseer. Generating $95-100 million in FY24, ad revenue currently represents 1-2 per cent of India’s digital ad spend. As platforms shift towards performance marketing, advertising is expected to expand significantly. Estimated to grow at 40–45 per cent, influencer marketing will likely reach $3-4 billion by FY29. The popularity of micro- and macro-influencers is a key driver, with creator marketplaces allowing brands to reach targeted audiences more effectively, the report noted. Currently at $80-100 millions and projected to reach $700–800 million by FY29, tipping has gained traction in the last 12 months, especially among audiences engaging in live streaming. With Indian users spending roughly Rs 100 monthly on tips, this avenue provides accessible support for creators and influencers. With growing maturity of users and user-influencer connections on India SFV platforms, video commerce is expected to hit $5 billion by FY29, the report mentioned. On average, users now spend 30 minutes per day on India SFVs platforms, a shift driven by high-quality, personalised content and user-friendly interfaces that cater to both metro and non-metro audiences. “More than 50 per cent of SFV users are monetisable, and their discretionary spending is often directed toward e-commerce, OTT, in-app purchases, and paid gaming services,” said the report. With roughly 30 per cent of monthly income earmarked for discretionary spending, SFV users are well-positioned to support these monetisation models, it added. With over 99 per cent original content, Indian SFV platforms offer a rich array of genres that cater to varied user preferences.