A Long-Term Winning Strategy
The most successful marketing and advertising campaigns are usually those that are aligned to the trends of the day and the pulse of consumers. Today, both these aspects converge on one point – digital. As businesses develop digital marketing and content strategies to stay relevant amidst the ongoing digital transformation of industry and life, it has become evident that the growing appetite for digital video content – especially short-form content – among Indian consumers will greatly influence how brands conceptualize and execute their advertising campaigns.
Short-Form Video To Dominate Online Content Consumption
Digital video is playing a predominant role in driving the growth of online and social consumption and has become an important source of both entertainment and learning. The digital media segment is expected to grow at a CAGR of 22% till the year 2023.India was ranked highest among all countries in the consumption of online video content during the pandemic. There is a growing demand for content that is high in quality, personalized in nature, and short in duration.
In recent years, over the top (OTT) and short-form video platforms have driven content consumption in metro cities as well as in Tier-2 and smaller markets. The number of monthly active users in India for short video content grew ninefold in less than five years, going from 20 million in FY2016 to 180 million in FY2020. Short-form video content is likely to overtake OTT and streaming video in the coming years. According to a report by RedSeer Consulting, the short-form video category is set to become the second largest segment in terms of online time spent by Indians by the year 2022.
Rise & Relevance Of Homegrown Video Apps
The ban imposed on certain apps last year paved the way for the rise of homegrown short-video apps. Being homegrown, these apps are based on an intrinsic understanding of the Indian consumer’s mindset and digital preferences, and therefore succeed in offering culturally relevant content that resonates with audiences. Presently, short-form video apps account for 18% of the total time spent on digital content, with homegrown apps accounting for 15% of it – five times as much as global apps that account for 3%.
The content creator community, meanwhile, has swelled to a size of 45 million and is projected to increase exponentially to reach 580 million by 2025. The proliferation of homegrown short video apps has brought out hidden talent in Tier-2 and Tier-3 cities, giving a huge boost to video content in local languages and making these apps more relevant and accessible for an even larger audience.
This is a market segment that will drive significant growth and stickiness for homegrown short-video app brands. Almost 75% of these consumers will stick to these homegrown apps even if the ban were to be lifted.
Opportunities For Brands & Content Creators
From the perspective of marketers, short-video apps are a great way to engage with consumers in today’s fast-paced life, where people’s attention spans are getting smaller. Moreover, the reach and popularity of homegrown apps and the fact that they cater to audiences of different languages and sociocultural backgrounds provides an opportunity for brands to engage in highly targeted and niche marketing.
The short form video segment has potential to account for 20% of India’s digital advertising market by the end of 2030. Two industry verticals – FMCG, and media & entertainment – are spending a large share of their digital media budgets on online video. They are also the biggest sectors to advertise on short-form video platforms.
Short-video apps have opened new opportunities not only for brands but also for content creators, who are leveraging this medium through their various brand endorsements and campaigns to monetize their content. Many content creators are even becoming entrepreneurs by launching either their own line of products or independent businesses.
Short-And-Sweet Content To Deliver Greatest Impact
The rise of user-generated content (UGC) is yet another important trend that brands can leverage for marketing. As many as 79% of people say that UGC has a huge influence on their purchasing decisions and that they find it to be much more authentic as compared to promotional content. Short-video apps provide the perfect platform for putting out this type of marketing-driven user-generated content.
Meanwhile, artificial-intelligence enabled app features are enabling users to give exciting new twists to their content – such as animating images and portraits to move and dance in tune to music playing in the background. AI and synthetic media will make video content much more interesting for creators and viewers alike.
In the coming months, we could see increasing levels of collaboration between brands on short-format video, especially on content that highlights their initiatives and impact in areas like CSR and community welfare. NGOs and government bodies have already started partnering with short-video players to drive impact and positivity.
Just like it happened with conventional television, it is inevitable that the digital marketing space will get cluttered over time. Short-form videos that are engaging, impactful, and sharply targeted will work best for brands, publishers, consumers and creators alike. That’s just how people like information – short and sweet.
