Influencer marketing in India’s short video sector to reach $3–4 bn by FY29: Report

Indian short-form video (SFV) platforms have emerged as powerful digital ecosystems, redefining content consumption and monetisation in the country. A recent report by Redseer Strategy Consultants outlines the evolution of these platforms, which now cater to hundreds of millions of users across diverse demographics. With innovations in regional content, influencer-led campaigns, and advanced monetisation strategies, Indian SFVs have firmly established their place in the country’s digital landscape.

Influencers: Driving engagement and brand loyalty

Influencers have played a pivotal role in the growth of Indian SFV platforms by acting as the crucial link between brands and audiences. Platforms like Josh, Moj, and ShareChat have built ecosystems where influencers thrive, particularly in the Indian regions. These influencers create culturally resonant content that appeals to Tier II+ audiences, who make up 73% of online transactors in India.

Their impact is evident in the rise of influencer marketing, which is projected to grow from $0.5–0.6 billion in FY24 to $3–4 billion by FY29, with a compound annual growth rate of 40–45%. Creator marketplaces further enable influencers to collaborate directly with brands, providing tools for streamlined campaign management and real-time analytics. This innovation allows influencers to not only amplify brand reach but also shape purchasing decisions, building trust and loyalty among their followers.

Regional content and user experience

One of the defining features of Indian SFV platforms is their focus on regional content. Catering to Indian users’ preferences, these platforms have prioritised vernacular languages and culturally relevant themes, leading to a significant increase in engagement. Advanced algorithms ensure personalised feeds with minimal content repetition, while moderation strategies have kept inflammatory content below 0.6%, far better than global averages.

These improvements have resulted in high user satisfaction scores, with Tier II+ users in particular giving Indian SFVs a Net Promoter Score (NPS) of 65%, reflecting strong platform loyalty. The intuitive interfaces and ease of content discovery have made these platforms especially popular among users with limited digital skills, further solidifying their position as a preferred entertainment medium.

The growth of regional content has also played a pivotal role in the success of influencer marketing on Indian SFV platforms. By prioritising regional languages and culturally relevant themes, these platforms have successfully catered to Bharat users, allowing influencers to resonate deeply with local audiences. Approximately 35–40% of SFV users in metro and Tier I cities, and 42% in Tier II+ cities, prefer content in regional languages, highlighting the demand for localised engagement.

Monetisation: Unlocking opportunities

Monetisation on Indian SFVs has diversified, with advertising, influencer marketing, virtual tipping, and video commerce driving growth. Advertising remains a key revenue stream, contributing $95–100 million in FY24, though its share of total digital ad spend is still modest at 1–2%. As platforms improve their performance marketing capabilities, this figure is expected to rise significantly.

Video commerce, a rapidly growing opportunity, is projected to expand from $0.3–0.5 billion in FY24 to $3.5–5 billion by FY29. Leveraging influencers to showcase products and engage with audiences in real-time, SFVs are changing how users discover and purchase items. In combination with virtual tipping and direct brand collaborations, these innovations are positioning SFVs as crucial players in India's digital economy.

The influencer economy continues to drive new revenue streams, including virtual tipping and branded content. Virtual tipping, expected to reach $700–800 million by FY29, enables users to directly support influencers, enhancing engagement. These developments, along with increased advertising spend, are solidifying SFVs as key contributors to India's evolving digital monetisation landscape.

Key highlights

• User engagement: Indian SFV platforms have seen a 3.6x increase in daily active users since 2020, with the average user spending 30 minutes daily.

• Influencer marketing: Projected to grow to $3–4 billion by FY29, influencers are now central to brand campaigns and user engagement.

• Regional content: Over 70% of SFV users come from Tier II+ regions, with platforms excelling in regional and vernacular content delivery.

• Monetisation growth: Virtual tipping and video commerce are expected to expand to $700–800 million and $3.5–5 billion, respectively, by FY29.

• Platform loyalty: Indian SFVs achieve high Net Promoter Scores, particularly among Tier II+ users, driven by intuitive designs and relatable content.

Indian short-form video platforms are at the forefront of a digital revolution, blending regional content, influencer-driven strategies, and innovative monetisation models to reshape the online landscape. As these platforms continue to refine their offerings, they stand poised to redefine how India engages with digital entertainment and commerce.