Leveraging The Potential Of Monetisation Prospects Of Short Video Apps
It is almost an instinct for us to open social media and scroll. And we all are guilty of getting submerged in creative content for hours at length. While many may feel that this is counterproductive, we absolutely cannot deny the power of short video content and how it has created a professional industry that has the potential to earn billions in revenue. While the social media ecosystem started with the message “connect with your loved ones”, it is no longer just about that.
Today social media has evolved beyond posts on a wall, and pictures on a feed. It has become even more visual with short videos taking up the number ONE position. Realising that these videos can be a great marketing tool, brands started leveraging them to promote their products and services attractively. The potential monetisation prospects of short video apps are enormous because they are used by everyone from celebrities to influencers to brands to regular consumers. The number of users is also proliferating — by 2021-2022, the number of monthly active users on short video apps in India is expected to reach 1 billion!
Immense Potential In Monetisation of Short Video Content
India has more than 450 million internet users, and the number of mobile internet users is expected to increase to 835 million by 2022, as reported by the Telecom Regulatory Authority of India. With an estimated 462 million active video users in 2023, India's online video market is expected to grow at a CAGR of 31% from 2020 to 2023. In addition, popular social media platforms also witnessed increased adoption of their video features by brands and individuals alike.
The monetisation of short video apps lies in the fact that content creators on these platforms create original content that is relevant and engaging to their audiences. This is where advertisers can leverage their product messaging through influencer marketing and bring it to life. These videos have become popular among teenagers and young adults, who find it easy to create their content with minimum effort using these services. In addition, these services offer an opportunity to monetise their content through advertising revenue or product placement opportunities.
How Advertisers & Influencers Leverage Short- video Content
Advertising, shoppable commerce, influencer commerce, and live commerce are three major monetisation streams in short video apps. Emerging content apps that are offering open garden technology and Web 3.0 platform made by creators for creators have amplified short-video content by integrating engagement tools like conversational AI to retain and respond to the consumers in real-time. In the past, short video apps were used by businesses to promote their products and services. However, they are now essential to a company's marketing strategy.
You can benefit from monetisation only when you have a community that will view your content and generate that revenue for your brand. You can build a community around your brand or product by hosting contests, giveaways, or other types of promotions on the platform of your choosing. When you realise your content is getting the right traction, Ads can be inserted into videos as an additional revenue stream for you and creators who have opted into using ads in their videos. It is important to make your community feel recognised by ensuring two-way communication through the platform. The more your audience engages with your content, the better monetisation prospects you would have. These engagements will also enable cross brand promotions, affiliate marketing opportunities, reach through user-generated content, influencer engagements and more, which would help you divulge into multiple revenue streams. The most intuitive way to use short videos is as a vehicle for selling products and services. The beauty of short video and social media platforms is that they allow you to easily insert links that viewers can click on directly from their phones or tablets. This makes it easy for people to purchase items without having to leave the platform. One of the best ways to make money from social media is by becoming an affiliate partner with a company that offers products or services related to the influencers' blog or website.
Emerging niche content video apps /platforms allow creators to tell the brand's story in a native manner that is relatable to the user enabling brands to access a platform's creator community. In addition, they integrate it with exciting and intriguing branded challenges on the platform, encouraging users to engage with the content and brand and giving it a far wider reach. Also, as the platform grows, they look at hosting more physical and digital outreach programs to engage our users, which brands can leverage to their advantage.
The future for these emerging platforms lies in creating opportunities for brands to partner with influencers on their platforms. For example, brands can partner with influencers who will work with them on creating content that resonates with their audience through social media posts/ads or even sponsored videos. In return, influencers get paid by a brand and share part of their earnings with the video content platform, giving them access to upload and promote the content. This collaboration helps both parties - it gives brands access to more targeted audiences while providing influencers with an opportunity to make money from their passion without making too many compromises.
*The author is Rohan Tyagi, VP, Triller India
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