Short-form video market monetisation could be worth $8-12 billion by 2030: Redseer Strategy Consultants report

Indian short-form video (SFV) apps have seen constant growth in adoption and engagement, and the market monetisation could be an opportunity of $8-12 billion by 2030, as per a new report by Redseer Strategy Consultants.

As per the report, the leading players from the country have come close to global players in terms of scale while having similar engagement levels.

The report highlights that with a large and growing population of smartphone users, SFV apps have already gained significant popularity in India. The content library for Indian SFVs is in line with India’s needs – linguistically and culturally diverse. 

Indian apps compare well with global short form apps and have a lead on content depth in three of the five top content genres, with significant difference in offerings around Music/Dance and Dialogue/Acting content. 

Furthermore, the report showed that the preferred language for content consumption in metro and tier 1 cities is Hindi, followed by English and other regional languages. While regional languages find an audience across India, it’s of key preference in tier 2+ cities only.

For brands, influencer marketing is becoming an increasingly popular marketing strategy in India. The report projected the marketing spend on influencers to be worth $2.8-3.5 billion in 2028, from current level of $0.35-0.4 billion. The findings emphasised that there is a need for a tech-enabled, transparent, and scalable solution for influencers and brands to engage.

The report also observed that user-generated content (UGC) platforms are developing creator marketplaces that can become a centralised network for creators to connect with brands. This can benefit both creators and brands, as it provides a platform for creators to showcase their work and for brands to find suitable creators to work with.

The report also highlighted that virtual gifting on short-form video platforms in India is expected to become $ 1.7 billion by 2030.

“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,” said Mohit Rana, Partner, Redseer Strategy Consultants.

“Globally, we see short-form video platforms and eCommerce platforms are increasingly focusing on video commerce to enhance customer engagement and boost sales. In India, video commerce has just started, with shortform video platforms expected to capture 40% of the $8-11 billion video commerce market in 2030 – top three categories being sold to be Fashion and beauty and personal care, and packaged food and beverages.”