Indian shortform apps have a monetization opportunity of $19Bn by 2030: Redseer

• On an average, Indian users spend ~38mins per day watching Short Form content.
• By 2030, the penetration of Short Form amongst total smartphone users will increase from the current 46% to 80%.
• The three main monetization levers will be Advertising, Video-commerce and Gifting.
• By 2025, it is expected to reach a MAU of 550-600 Mn; ~67% of all smartphone users.

Indian shortform apps have a monetization opportunity of $19Bn by 2030, and by 2025 they are expected to double their monthly active user base to 600 million, said strategy consulting firm Redseer Strategy Consultants.

This growth is largely attributed to the fact that Indians are heavy users of mobile entertainment and spend close to 156 minutes per day viewing entertainment content on their smartphones. Further, the report released by Redseer also states that the next wave of internet growth is likely to come from Tier 2 cities and beyond, regions which have a higher propensity to view shortform videos. Additionally, rapidly improving quality of content and algorithms for Indian Short Form apps is another significant driver of growth.

As far as India’s Short Form sector is concerned, it is expected to witness close to 600 million monthly active users by 2025, which will be 67% of all smartphone users.

“Indian Short Form apps are witnessing phenomenal growth as compared to other established platforms, this can be attributed to their low decision fatigue, language localization, recommendations, genre variety and local creator influence. In fact, on average, an Indian user consumes close to 38 minutes of Short Form content each day”, said Mohit Rana, partner at Redseer.

Redseer believes that the Indian apps are now poised to start monetizing their large and engaged user base through advertising, video commerce and to a lesser extent, gifting. The report concluded that by 2030, shortform can take close to 10-20% of the overall Digital Ad pie. Further, video led commerce in Short Form apps is another big opportunity; and China is a testimony to this given that in the last 4 years alone, video led commerce in China grew 100X.

About Redseer Strategy Consultants

Redseer Strategy Consultants is a leading strategy consulting firm. Founded in 2009, Redseer works with new-age consumer-focused businesses and offers growth advisory, digital strategy, and investments thesis. The company is a thought leader in the Internet economy space and is the most widely quoted consulting firm in the media.

The company boasts of a 90% + market share of new-age IPOs. Zomato, India’s first major consumer tech IPO and GoTo, one of the world’s largest consumer tech IPO, Nykaa, Paytm, Cartrade, Delhivery are other noted IPO engagements of Redseer. The company enjoys more than 50%+ market share in the new-age deal advisory and a lion’s share in the strategy consulting space

Redseer sees itself as a band of strategy consultants who have disrupted the 100+ year old management consulting industry, and in the process have emerged as the most sought-after consumer business focused advisory firm. The company is known for its proprietary methodologies, deep consumer understanding, high-quality research, and an entrepreneurial mindset. Run by the youngest set of consultants, today Redseer has a strong presence in India, Middle East, Southeast Asia, USA and UK. The company is headquartered in Bengaluru and has a formidable team of 200+ consultants in 7 offices across India and overseas.