Indian short-form apps have a monetisation opportunity of $19 billion by 2030, according to a new report by Bengaluru-based consultancy firm, Redseer Strategy Consultants.
Indian short form content is growing exponentially with the 300-million monthly active user (MAU) base courtesy improving quality of content, digital advertising and algorithms. This is expected to reach 600 million and 67% of all smartphone users by 2025.
Indians now spend as much as 156 minutes per day viewing entertainment content on their smartphones. The average user consumes up to 38 minutes of short form every day. Approximately, 35% per cent of the total users of these apps come from rural areas, 30% from Tier-II and III cities and 19% from metros.
A staggering 71% of users wake up and consume shortform entertainment. Advertently, India’s digital ad market is prised to grow five times between 2022 and 2030. On the other hand, shortform advertising is touted to increase by 10 to 20% by 2030. Presently, only 1% of overall digital advertising spends accrue to short video apps.
“Indian short form apps are witnessing strong growth as compared to other established platforms, this can be attributed to their low decision fatigue, language localisation, recommendations, genre variety and local creator influence,” said Mohit Rana, partner at RedSeer in a statement. “In fact, on average, an Indian user consumes close to 38 minutes of short form content each day.”
Additionally, the growth of India’s short form video market is directly proportional to the booming creator economy and allied sectors in the country. As per reports, the latter is growing at a CAGR of 25%.
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