Short-format videos have been all the rage ever since TikTok made its way to India. The boom of short-format video has witnessed unprecedented success especially, post the pandemic. However, a ban on Chinese apps led to the shutdown of ByteDance-owned TikTok. Needless to say, this space was promptly filled by Meta through Instagram, Google through YouTube Shorts, besides other players. “Short format video has, and will continue to, see significant growth, across both metro and non-metro markets. With over 30 minutes spent per active user per day across apps, its importance has grown for marketers. Innovations in ad formats will be required to drive monetisation,” Ashish Pherwani, leader-media and entertainment, EY, told BrandWagon Online.
As per a RedSeer report, India has 25 crore users across short-format video platforms with approximately 70% hailing from tier-2 cities, semi-urban and rural areas of the country. Moreover, 64% of the user base in the country consists of individuals aged 25 years or below.
Tapping different markets
Content consumption of short-format video (SFV) platforms has undergone a significant change. Bite-sized videos have gained prominence over long video platforms. Moreover, the shrinking attention span of users has contributed to the rise of these platforms. While urban markets have been in contention, tier-2 and rural markets have been actively using SFVs. And even as international players have a big content library, homegrown platforms are competing through vernacular content to expand reach in tier-3 and 4 cities. “Global SFV platforms are of course popular in urban areas. However homegrown platforms have a large user base in tier-3 and regional markets owing to the growing popularity of content in native languages,” Gaurav Jain, CBO, ShareChat and Moj, highlighted.
As per a FICCI-EY report, Indians spend the majority of their time on social media platforms. Indians spent approximately 46% of their time on social media apps. Additionally, Indians spent approximately three hours each day on social media platforms.
According to industry experts, the approach for homegrown brands involves delivering content in regional languages customised to the diverse preferences of Indian users and blending entertainment, information, and user-generated content, ensuring compelling appeal across varied regions and demographics. Meanwhile, international players are also attempting to penetrate different markets in the Indian hinterlands. “We’ve seen the broadening of languages represented on the platform – including Santali, Kokborok and Chokri. Today many dialects have their ecosystems, with multiple channels across genres appealing to specific communities and, features like closed captions and multi-language audio tracks allow audiences to tailor their viewing experience while letting creators add new layers to their storytelling and reach new audiences beyond cultural, geographic, or language barriers,” Ishan John Chatterjee, director-India, YouTube, stated.
As per a survey by Axis My India, a consumer data intelligence company, approximately 80% of respondents reported watching video content on platforms like YouTube, Instagram Reels, and Facebook Shorts, among others, daily.
Creator economy on the rise?
The creator economy has been on a constant rise. Influencer marketing has emerged as a popular marketing strategy in India. Moreover, India is home to over four million creators, divided into buckets like micro, macro, mega and elite. Monetisation in social media platforms has resulted in a variety of activities including brand collaborations, gifting, and micropayments, among others. The global market for influencers has grown eightfold to $14 billion in 2021 from $1.6 billion in 2016, as per market intelligence platform, Statista. Additionally, the value of the influencer marketing industry in India was approximately Rs 1,200 crore in 2022 and is expected to reach Rs 2,100 crore by 2024.“We are witnessing a shift to influencer marketing over celebrity endorsements, as brands leverage the trust creators build with audiences for engagement,” Sunder Venketraman, head-creator and content ecosystem, Josh, highlighted.
Industry experts believe that short videos are captivating and easily capture the attention of the audience, influencers create engaging content that resonates well with the audience. The growing viewership has given rise to a wave of influencers who have been leveraging SFV platforms to gain a substantial following, further accelerating content creation everywhere. “Short-format videos break the chains of making content with high-end cameras or phones and productions and you are just a click away from making a video. Also, when we watch a long content video, it consumes 10-20 minutes whereas if we watch two-three minute shorts, we can watch more than 25-30 videos; enabling more visibility to creators as well. That’s the reason the short format got popular because it doesn’t just help a creator grow their brand and community but also gives the audience the content that they deserve,” Suraj Pal Singh, digital content creator and entrepreneur, said.
Platforms are also trying to accelerate community building for creators. Moreover, community building as well as engaging audiences have been a key focus, not only for the creator but also for platforms. “We were also the first company to launch a program in which we share revenue with creators. Our fan funding features give creators another way to grow their earnings while engaging with their audience. Creators can
provide exclusive content and benefits to their fans through channel memberships or
shoutout to viewers who use Super Chat during their live streams,” Chatterjee, added.
Advertiser’s paradise?
The short-format video platforms continue to onboard more users to their user base. The short-form video segment saw an increase in active users between 2019 and 2021, with the user base amounting to 290 million during the latter. The figure is further expected to grow to 650 million users by 2025. Advertisers intend to capitalise on the huge user base as the user base grows. Industry experts opine influencer marketing has emerged as a powerful tool for brands to connect with their target audiences on a more authentic and engaging level. “Brands understand the potential of influencers, especially micro influencers as they are seen as more authentic and credible and tend to reach a large audience quickly. Their audience will likely be more niche and closely aligned with specific interests or cultural nuances. By partnering with influencers, brands can effectively leverage influence to reach a wider audience beyond traditional advertising channels, amplify brand resonance, foster authentic connections with audiences, and drive impactful results for advertisers,” Jain, added.
Moreover, brands have also been cashing in on these platforms via advertising. Experts believe that the era of overt advertising is evolving into an era of subtle, story-driven content that doesn’t feel like a traditional advertisement. This approach captivates while adding value to the viewer’s experience, making it a powerful tool in a brand’s arsenal to justify the anticipated growth in advertising numbers. “In the dynamic landscape of digital advertising, where an 18% growth is expected from FY23 to FY28, brands are gearing up to redefine engagement through their video content. The focus is shifting towards creating relatable content, which mirrors the audience’s life and experiences, ensuring a deeper and more personal connection. Incorporating vernacular content is also key, as it breaks geographical and cultural barriers, resonating with a diverse audience base,” Chetan Siyal, CMO, Snitch.co,in, a D2C apparel brand, said.
It is believed that brands across categories are beginning to utilise homegrown SFV platforms given the value proposition, growing user base, especially in tier-2 and regional regions, monetisation potential and the volume of online transactions. Currently, beauty and personal care (BPC) as well as fashion are already collaborating with new-age influencers to tap into larger audiences. Despite an ongoing funding winter in the startup landscape, advertorial spending is gradually stabilising across SFV platforms, and experimentation is underway to identify the model of advertising that can provide maximum return on investment, as per a RedSeer report. “Leveraging regional languages and cultural nuances in short video content is a growing trend. YouTube and social media channels know consumer interests and deploy advertisements that resonate with rural audiences. Amul is a good example of a brand featuring relatable scenarios in local languages connecting with rural audiences one-on-one. Brands like Tata Tea and Parle G have moved to SVF formats even in the urban context. A lot of platforms like YouTube recommend the use of SVF to build frequency and budget optimisation,” Krishna Iyer, director – marketing, MullenLowe Lintas Group, said.
Moreover, influencer marketing has become one of the major revenue earners for creators on these short-format video platforms. There has been a gradual change in the way advertising from print ads to TV ads to influencer marketing. Brands have been collaborating with influencers to build a relationship with a certain influencer audience. “One can see a particular brand or company collaborating with more influencers as compared to celebrities. Not because of their reach or engagement but for the connection they have with their audience regularly to build trust and have a stronger impact. The freedom of creating content resonating with themselves and their audience also plays an important role when it comes to brands getting influencers on board,” Singh added.
2024 and ahead
According to industry experts, connectivity remains a challenge in rural outreaches despite strong growth in network connectivity. Inclusivity, cultural sensitivity, and understanding the unique preferences of urban and rural consumers are paramount. Comprehensive strategies have been deployed to tap the diverse consumer base across the country, evident in the growing popularity of regional platforms like Josh, Moj, and Josh, where brands increasingly collaborate with local influencers and use short videos for targeted outreach. However, challenges remain. Inconsistent internet access in rural areas necessitates solutions like offline video downloads or lighter content. Bridging the digital literacy gap is crucial to creating an inclusive digital ad landscape.
As artificial intelligence (AI) continues to grow and expand its areas of use, short-format video platforms are also trying to adopt AI. Homegrown players have hinted towards the adoption of AI soon. International players like YouTube have recently rolled out BrandConnect, its branded content platform, to help brands execute campaigns while opening a new avenue for creators to be discovered and earn more from their content. “Remaining highly adaptable to changes in technology and industry, we at Josh continually experiment with innovative features like AI filters, while maintaining a steadfast focus on effectively engaging with our users. A recent example is the introduction of an AI-powered feature that empowers creators to generate personalised captions and hashtags in real time, enhancing the content creation experience. Additionally, we embrace cutting-edge technologies such as AR and VR formats, elevating creativity and user engagement while elevating user experience,” Venketraman added.