Why is an hour-long YouTube interview cut down into bite-sized pieces and published as shorts? Because the audience today is touched by boredom all too easily. Spoilt for choice, people on social media are grappling with a content explosion. In this, the human brain faces conflict, trained to get distracted and continuously looking for a switch. Adam Brown, Co-Director of the Center for Attention, Learning, and Memory at St. Bonaventure University, New York told TIME Magazine in a 2023 article that inattention has reached ‘epidemic’ levels. But advertisers who have historically been ardent believers of ‘making hay when the sun shines’ are paying heed to these changing trends.
Our dwindling attention span supports the meteoric rise of short-format video platforms, draws in audiences from all corners, and lures advertisers. Today, the whole world wants to be part of this ephemeral landscape, which is said to be revolutionizing the content marketing scene like never before. Experts note that these platforms not only redefine storytelling, marketing, and advertising but also create internet celebrities at an unprecedented rate.
Showing the growth trajectory of this area, Amyn Ghadiali, President of Business and Integrations, GOZOOP Group shares, “Projections show that by 2024, the digital ad market is expected to surge by 29% annually, reaching Rs. 35809cr., with online video ads growing at a 34.86% CAGR to capture 30% of digital ad spends. This reflects a fundamental shift in ad strategies, with marketers increasingly focusing on captivating audiences on short video format platforms. Additionally, social media, with a 29.79% CAGR and 29% spending share, underscores the integral role of short-format videos in their growth strategy.”
Similarly, Neha Nohria, Senior Director-Digital Planning, Carat India informs us, “With a rapidly expanding user base across metros, Tier I, and Tier II+ cities, the monetization of short-form video (SFV) content is poised for significant growth. SFV platforms and e-commerce players foresee a total market opportunity of US$ 8-12 billion by 2030, unlocking value through advertising, video commerce, and live gifting.”
The Highs and the Lows
As per the data.ai State of Mobile 2024 report, global active monthly users of short video format saw a jump from 2.9 billion in 2021 to 3.4 billion in 2023, highlighting positive sentiments. However, the report also finds that during the same period, active monthly users in India reduced from 402 million to 240 million.
Talking about the reduction in active monthly users, Nishant Chhinkwani, Creative Director, GOZOOP Group elucidates, “One primary factor for this could be creating and sticking to a formula while making content. That has led to brands’ feeds having a slightly similar, monotonous look and has led consumers to explore other forms of content, owing to video fatigue.”
However, he believes that this medium is here to stay, and in fact thrive. He says, “As per an industry report, the monthly active users in the category witnessed a 40% decline in 2023. But brands are still betting on short videos because they are the most effective in spelling out the narrative brands want for them.”
Similarly, Shrenik Gandhi, Co-founder and CEO, White Rivers Media remarks, “The short-form video landscape is maturing. While user bases on some platforms may ebb and flow, overall engagement with the format remains robust. The key now lies in keeping content innovative and audiences truly captivated. Advertisers are diversifying their content strategies and precisely targeting audience to ensure they resonate and connect with viewers.”
In everyone’s plan
These days, social media often provides fashion inspiration to people. This leads to a large number of monetization opportunities for brands. Field experts are pounding that short video platforms offer several revenue streams to brands. This includes sponsored challenges, in-video advertisements, and instant purchase options.
Vijay Sharma, Senior Director, Brand Marketing, Myntra while talking about their short video platform, Myntra Minis, notes that the new platform is influencing around 15-20% of the purchases. “Myntra Minis was one of our biggest launches in 2023 and it has seen a significant adoption from users, especially younger consumers. Furthermore, over 40% of users’ consumption at Myntra happens through short videos.”
Similarly, Ravi Santhanam, Chief Marketing Officer, HDFC Bank explains, “Our share that goes into advertising on short-format video platforms varies from campaign to campaign. For certain campaigns, 25-30% of Digital spending can move into such platforms.” He argues that short-form video platforms act as agents for amplifying the ATL content. It is also being noted that people’s social media usage is increasing heavily, supporting new avenues for advertising.
Growing Usage and falling attention spans
According to a 2023 Statista report, as of 2022, the average daily social media usage of internet users worldwide amounted to over 150 minutes per day. Looking at the evolution of short-form video platforms, Abhinay Bhasin, Head of Product Marketing, ProfitWheel notes, “COVID has been a huge accelerator. The average time spent on these short-form video platforms has gone up from 21 minutes to 40 plus minutes.”
Notably, short-format video content is abundant, therefore, the onus lies on brands and creators to be crisp and meticulous with their content. Experts propound that failure to captivate the viewer during the initial moment risks losing them to the abundance of competing advertisements.
Stanton Ambrose, CMO, Celio India states, “In the fast-paced world of short video platforms, user attention spans are incredibly brief, averaging around 8 seconds. Within this fleeting timeframe, individuals decide whether to continue watching a video or to move on, typically taking only 3 seconds to determine this.”
Industry professionals are voicing that shorter narratives target the audience with a crisp and tailored message that is easy for them to consume, eventually shooting up the brand’s consumer engagement and creating conversations.
Discovery and monetisation
According to Gaurav Jain, Chief Business Officer, ShareChat and Moj, short-video platforms have redefined Digital advertising by providing unique advantages in reach, format, content, conversations, and ROI. He adds, “With exponential growth, short-video platforms have become the preferred space for brand messaging, offering diverse language options for tailored communication.” Jain further reveals that ShareChat’s revenues have grown over 60% year-on-year since the previous financial year, largely due to increasing advertising revenues, powered by growth in new areas such as in-app gifting, and live streaming.
Experts from the field believe that advertisements on short-video platforms stand out due to their extensive reach, conciseness, alignment with user-generated content, interactive features, and the potential for cost-effective campaigns with quantifiable ROI. In addition, what is even more amazing is that similar to e-commerce platforms, the medium not only helps with the discovery of products but also supports sales.
Shedding light on the same, Abhinay Bhasin notes, “I believe that this medium helps with discovery and also sales. Shoppable commerce via short video platforms is getting a tremendous push. Last year alone, TikTok drove more than 4 billion USD in sales and is now targeting a 4-5x growth of that.” He adds that the internet has been responsible for the rise of D2C brands, which have been built on its back.
Short-form videos play a significant role in the discovery process for categories such as Music, Skin Care, and Entertainment. Many brands are placing this format at the core of their social strategies, as professionals assert that its influence will continue to grow.
Aditi Mathur Kumar, Creative Business Lead – North & East, Interactive Avenues notes, “The potential for sales via Short-Form Videos is intricately tied to platform capabilities and restrictions, which significantly impact brand performance. However, short videos offer the ideal format to successfully capture customer attention and effectively showcase products, while communicating the brand promise engagingly and authentically. It is poised to become a major player not only in the discovery phase but also in the consideration stage, ultimately leading to increased sales.”
Short-format video platforms are collaborating with e-commerce giants and other big and small players to support direct in-app purchases. Furthermore, the visual medium helps to paint a better picture of the product, and with influencers already in play, this avenue seems to be soaring.
“Trends are ever-evolving. Live commerce was earlier touted as the next big frontier for India’s booming e-commerce industry but is now slowly losing its popularity. However, short video platforms are also capitalising on innovative avenues, bringing a new era in creator monetization. Creators can directly monetize through microtransactions in the form of virtual gifts,” mentions Gaurav Jain.
Direct purchasing and Reminder agent
While professionals propound that social media is not the right fit for mass awareness, they also believe that the medium has some qualities, which are missing in traditional media. Shankar Prasad, Founder and CEO, Plum Goodness says, “Consumers can directly view the products and make purchases through short-video platforms, which can’t be done over traditional media. Short-format video ads are different from Digital ads as they integrate seamlessly into the video consumption behaviour of the audience.”
Industry experts have also found short-format videos to work better as reminder agents. After the campaign has been released through traditional mediums, a shorter version can be shown again on these platforms, helping it get deeper into the memory of the consumers.
Sunil Kumar Mohapatra, Chief Revenue Officer, VerSe Innovation, the parent company of Josh, states, “Leveraging the immense popularity of short videos, Josh capitalises on their high reach and engagement, which are inherently shareable, surpassing traditional digital ad formats in viewer engagement and retention. He further adds that the bite-sized format of their ads, typically ranging from 15 to 30 seconds, aligns seamlessly with the short attention spans of today’s digital audience, resulting in higher engagement rates.
Some limitations
Even though industry professionals have shown belief in the format and celebrated some of its features, they acknowledge its limitations. Soumitra Choubey, Associate Director, Brand Marketing, Meesho points out, “Unlike Television and YouTube, short-format video platforms don’t come packed with a mechanism that supports forced interruption and keeps users exposed to the ad. People always have the choice to skip ads on these platforms by scrolling up or going right or left.”
Additionally, some observers have shared that the medium is going through a phase of saturation in India. Because of its short duration, brands are often unable to provide complete details of the product, which is not enough to woo all consumers. This is why in recent times, several creatives have decided to go forward with the long video format.
Extended reach
Several industry experts assert that advertisers are discovering new avenues to connect with audiences beyond Tier I. Gaurav Jain states, “With a staggering user base of over 325 million monthly active users and support for 15 Indic languages, ShareChat and Moj empower national brands to connect with diverse audiences in the hinterlands through targeted and language-focused advertising campaigns.”
Talking about the additional benefits of Indian short-video platforms, Shankar Prasad remarks that different parts of India can be reached through these platforms, and they allow brands to connect better with the local audience in regional languages and use culture-specific references.
According to a recent Redseer report, 40% of users have been conducting online transactions on Indian short-video platforms, opening up monetization opportunities. The same report highlights that nearly 65% of users of Indian short-video platforms hail from Tier II cities and beyond. Prasad didn’t shy away from saying that short video platforms have a more diversified consumer audience from the perspective of regions, age groups, and the content they consume.
Industry luminaries believe that short-video apps now come equipped with a multifaceted approach of customised ad solutions, encompassing branded filters, hashtag challenges, and sponsored content. Further speaking about the topic, Sunil Kumar Mohapatra shares that Josh finds meticulous solutions designed to cater to diverse advertising goals. The effort elevates brand visibility and fosters top-of-mind awareness through captivating and engaging content.
The Influencer Ecosystem
Experts are pointing out that influencer marketing and integrations play a huge role in the growth of short video platforms. It is believed that influencers or content creators come with an organic reach and a significant following, and therefore, collaborating with them allows brands to reach their potential target audience easily. While addressing this, Mohapatra states that Josh encourages creative integrations, facilitating collaborations between brands and influencers to create content that seamlessly blends promotion and entertainment, enhancing user engagement.
The surge in user-generated content platforms has given rise to a thriving ecosystem of 3.5 million influencers, who are essentially new-age celebrities, propelling the expansion of Short-Video Format platforms, finds the Redseer report.
Industry experts sense that influencer partnerships are increasingly becoming an important part of today’s advertising. When information comes in from a more credible source, consumers feel safer while making a purchase decision, notes Shankar Prasad.
“In India, short format video platforms have made ‘influencing’ easier, and more people now have access to creating better content, thereby increasing the number of influencers with a large following. Furthermore, these platforms thrive on trends which influencers often start or catch on to with their unique take,” says Hayden Scott, Creative Head APAC, Virtue Worldwide.
Various reports suggest that influencer marketing is helping increase brand affinity. Speaking along similar lines, Choubey reveals that when it comes to short-form video platforms, creator-led content happens to be the most engaging one. According to professionals, influencer partnerships not only showcase the product but also impact consumer’s purchasing decisions by adding a layer of trust.
Sunil Gadgil, Marketing Director, Nivea India reveals that their personal care brand partners with influencers to create video content. He believes that influencers have a better understanding of the platform and also have a knack for storytelling, which is authentic and interesting. Gadgil further adds that they have created their influencer marketing platform called Nivea Fresh Batch, under which they select 60 promising people and train them in the field. “We select 60 of them, give them an annualised contract and bring them to Mumbai. Here they get trained by professional influencers on how to make content, and then engage with them in terms of new product messages and what kind of stories could be done.”
Industry professionals have thrown light on how influencers facilitate two-way communication between brands and their audiences, creating a sense of community. It is also believed that while choosing the correct platform, brands and agencies think about the age-group that they are catering to. In today’s time, brands are acknowledging the domination of Gen Z on short-form video platforms, and to entice them, they are coming up with new ways to engage with them using pop culture and trends.
Regarding the significance of influencer partnerships, Aditi Mathur Kumar voices, “As influencers dominate short-form video platforms, they have become vital pillars for brand integrations and influencer marketing, especially with the majority of millennials and Gen Z actively engaged.”
The medium doesn’t support forced or unskippable ads yet, distancing itself from the other formats, and on top of it, the medium is also going through a saturation, with its active monthly users reducing. Experts believe that Television and YouTube remain the top picks for launching campaigns, and only after the introduction of the un-skip option on the vertical format can it be placed on the same levels as them. But then again, things can change very soon. But no one can deny that short-form videos already caught the attention of all, and they are outshining traditional media on some perimeters like popularity, convenience, and instant purchase options, amongst others.
