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Amidst extensive reach into India’s Tier II+ cities and high quality content, the country’s short-form video (SFV) market has seen a 3.6x increase in daily active users, according to a report by Redseer Strategy Consultants.

In a report titled “India SFV in 2024: From ‘Likes’ to Monetising Millions”, the firm has identified four main user archetypes driving SFV engagement, namely value seekers, digital innovators, household stewards, and career mavens.

“India’s digital advertising market is set for exponential growth, projected to nearly double by FY 2029 to reach $16–17 billion, with video advertising leading the way as the fastest-growing ad format,” said Mukesh Kumar, Associate Partner at Redseer Strategy Consultants.

More than 50% of SFV users are monetisable, the report noted. The discretionary spending of these users are often directed towards e-commerce, OTT, in-app purchases, and paid gaming services.

India’s SVF platforms are now generating $95-$100 million in FY24 with ad revenue currently representing 1%-2% of its digital ad spend.

The influencer marketing space is estimated to grow at 40-45%, and is likely to touch $3-$4 billion by FY29.

In addition to advertising, the student highlighted potential for new revenue streams like virtual tapping and video commerce.

Currently, over 63% of the SFV engagement is coming from Tier II+ regions, with platforms like Josh and Moj tailoring content for local languages and preferences. On an average, users now spend about 30 minutes per day on Indian SFVs platforms, said the report.

According to the report, the focus on quality is a key factor in user retentions, particularly in Tier II+ regions, and with growing maturity of users and user-influencer connections, video commerce is expected to touch $5 billion by FY29.