Advertisement revenue contribution of Indian short video platforms to entire digital ad revenue in India is less than 1 per cent, excluding YouTube Shorts, Facebook Watch, and Instagram Reels, according to RedSeer Consulting’s latest report.
However, short video content accounts for 7 per cent of the time spent by users on consuming online content across sectors. Nikhil Dalal of RedSeer told BusinessLine , that this trend of low ad revenue contribution is because these platform are fairly new.
“While shortform video ad monetisation is still at a nascent stage, and accounts for less than 1 per cent of the digital ad spend, the ad revenue in the sector has grown more than ~3x in last 6 months and as the user base continues to rise, ad revenue will continue to grow. Live stream gifting and live e-commerce are also showing early signs of growth and will form an important monetisation opportunity for shortform players,” said Ujjwal Chaudhry, Associate partner at RedSeer.
Further, Shortform Content is said to have grown 1.37x in terms of monthly active user (MAU) and 1.1x in terms of daily active users from June 2020 when Chinese app TikTok was banned in India. Interestingly, the time spent on these short video content platforms has dropped 0.45x since the TikTok ban.