Indian apps have retained 65-70% of the Tiktok era users driven by acquisiton of influencers on these platforms as well as efforts to provide similar/ better product experience for creators and users. 30-35% of users on short-form video have been acquired through aggressive customer acquisition and marketing push by Indian apps. The new users getting on-boarded have a higher share of tier-2+ users driven by stronger focus of platforms on vernacular content and ‘Bharat’ positioning.

1. Short-form video
The rise of Made in India
digital content

2. 2
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3. 3
Executive Summary
1.
Riding on the India digital wave, digital content sector has been the largest
gainer
1. India continues to ride on a strong digital wave
2. Digital content has been one of the largest gainers
2. Short-form video user base is back to nearly 100% of pre TikTok ban, with
strong loyalty to Indian apps
1. Strong recovery by the shortform industry after the TikTok ban with respect to
traffic and engagement
2. New users getting on-boarded in short-form video space with strong loyalty to
Indian apps
3. The gap between short-form and overall digital content on engagement and NPS
indicators is coming down
4. Short-form video has differentiated itself from other global social media and
content through a strong ‘Bharat’ positioning
5. User perspectives show varied use cases and strong value prop
6. Short-form video is moving from middle of the internet funnel towards the top

4. 4
Executive Summary
3. Strong network effects fuelling ecosystem growth leading to large
monetization potential for both influencers and platforms
1. Users and influencers feeding each others’ growth on the platforms
2. Self motivation propelling the influencer ecosystem driven by highest income
potential in gig economy
3. Vast earning potential at the top-end of influencer pool leading to strong
motivation and higher platform satisfaction
4. Number of follower for top influencers vary from 4Mn to 15Mn
5. Social media is one of the fastest growing advertising channel with ~$2.4Bn annual
spend
6. Strong advertiser interest in short-form video platforms
7. Strong monetization potential across ads and live commerce
4. Consumer and Influencer experience defining the market leaders and
laggards
1. Players with high quality content, strong recommendation and better satisfaction
of non-metro users have higher consumer NPS
2. Higher # of followers and reach of posts driving influencer satisfaction

5. 1.
Riding on the India
digital wave, digital
content sector has been
the largest gainer

6. 6
20
0
150
300
450
600
750
900
1050
2010
2
20
00
00
0 2020
2016
# of smartphone users
2014 2025F
Internet enabled 2G
phones
Low cost 3G enabled
Smartphones
Jio -Affordable 4G
LTE
Desktop Internet
242
525
825
44
Key Drivers of Adoption
India continues to ride on a strong digital wave
Source(s): Expert Interviews, RedSeer IP, RedSeer Analysis
Smartphone Users, India
Mn (FY2000 – FY25F)

7. 7
India continues to ride on a strong digital wave
Data consumption per smartphone highest globally, growing by 30%+ in last one year
Source(s): Ericsson mobility report (2020,2021), RedSeer Analysis
Data Consumption per month per smartphone
In Gigabytes per month, FY’20 - FY’21
12.0
8.5 8.2
7.5
7.0
5.8
4.6
5.0
3.9
1.6
15.7
11.8
11.3 11.1
9.4
7.3 7.6
6.0 5.8
2.2
SE Asia and
Oceania
Sub-Saharan
Africa
Latin America
NE Asia
Western
Europe
Global
Average
Central and
Eastern
Europe
ME and
North Africa
North
America
I
In
nd
di
ia
a
+31% FY21
FY20
67% higher
than global
average
Key Drivers
1. Cheap Data Costs
2. Large section of lower income
profile with time in hand have
access to smartphones; this
cohort drives the consumption

8. 8
Digital content has been one of the largest gainers
One of the four large internet economies in digital content-heavy high smartphone usage
Note : Digital Content includes online content streams such as OTT Video, Social Media, OTT Audio, etc.
Source(s): Secondary Research, RedSeer IP, RedSeer Analysis
Average time spent vs Online Content Consumption, Top countries
FY 2020-2021
0%
25%
50%
75%
3.0 4.0 5.0
%
Time
Spent
on
Content
(FY
21)
China
Brazil
Size Represents # Smartphone Users Mn
Average hours spent on smartphone per day (FY21)
Indonesia
Mexico
India
South Korea
Japan
Canada
USA
UK
Russia
Australia
Digital Content heavy
Moderate smartphone usage
Moderate Digital Content contribution
High smartphone usage
Moderate Digital Content contribution
Moderate smartphone usage
Digital Content Heavy
High smartphone usage

9. 2.
Short-form video user
base is back to nearly
100% of pre TikTok ban,
with strong loyalty to
Indian apps

10. 10
TherecoverybytheshortformindustryaftertheTikTokbanhasbeensharp
Pre v/s Post Tiktok Ban
Source(s): Primary Research, RedSeer Analysis, Consumer Surveys
Daily unique Active Users, Overall time spent; Feb 20 –Mar 21
0%
20%
40%
60%
80%
100%
120%
Feb-20 Mar Apr May June July Sept Nov Jan Mar-21
Daily unique active users
1. Daily unique active users is back
to 97% of Jun 2020 (before TikTok
ban) driven by aggressive market-
ing and user acquisition by plat-
forms
2. Time spent on short-form video
has reached 55% of June 2020
which indicates that Indian plat-
forms are still maturing and there
is a strong market opportunity
Total time spent on short-form video platforms
TikTok Ban
% of Tiktok Market Captured
97%
55%

11. 11
Most of the new Shortform Users have been added from the longtail cities
Source(s): Primary Research, RedSeer Analysis, Consumer Surveys
Daily unique Active Users, Overall time spent; Feb 20 –Mar 21
Key Highlights
• Indian apps have retained 65-70% of the Tiktok era users
driven by acquisiton of influencers on these platforms
as well as efforts to provide similar/ better product
experience for creators and users
• 30-35% of users on short-form video have been
acquired through aggressive customer acquisition
and marketing push by Indian apps
• The new users getting on-boarded have a higher share
of tier-2+ users driven by stronger focus of platforms on
vernacular content and ‘Bharat’ positioning
30-35% current short-form video users
have started using short-form video after Tiktok ban
…and a similar number of users churned
out after Tik Tok was banned
30-35%
No
N = 535
65-70%
Yes
Question:
“Did you use TikTok before the ban?”

12. 12
New users getting on-boarded in short-form video space with strong
loyalty to Indian apps
Source(s): Primary Research, RedSeer Analysis, Consumer Surveys
Users also do not see a strong reason to switch back to Chinese Apps
• I loved Tiktok because of the personalization. These Indian
apps in the market are equally good. They also provide relevant
recommendations and I am very satisfied.
- Metro User
• All my favourite influencers who were on Tiktok are on the
Indian Apps and they generate similar high quality content.
So I don’t see the need to switch.
- Tier 1 User
• The content on the Indian Apps is really on par or even better
than Tiktok. They also host a lot of hashtag challenges and
contests. I am very happy with the current apps
- Tier 2+ User
• I am not willing to use any Chinese app. The Indian app has
all the essentials features and tools that are present on the
Chinese Apps
- Tier 2+ User
75% current short-form video users
are unlikely to switch back to Chinese apps even if the ban
was lifted
Question:
“How likely are you to continue using ‘made in India’ apps
if the ban on Chinese apps is lifted?”
6%
14%
33%
43%
Unlikely
4
4%
%
Most Likely
Likely
Neutral
Most Unlikely
N = 535
1
2
3
4

13. 13
The gap between short-form and overall digital content on engagement
and NPS indicators is narrowing
Note : 1. Digital Content is Ex of Shortform Video and it includes online content streams such as OTT Video, Social Media, OTT Audio, Etc.
Source(s): Expert Discussions, RedSeer IP, RedSeer Analysis
DAU/ MAU (Sector average)
in %
Time Spent per DAU (sector average),
in mins
NPS (Sector average)
in %
Platform Stickiness- DAU/ MAU (%) Time Spent per DAU per day (in mins)
Platform NPS (%) Key takeaways
48%
Short-Form Digital Content1
43%
30
Short-Form Digital Content1
41
28%
Short-Form Digital Content1
34%
DAU/ MAU: Strong user repeat behavior compared to other
sectors due to higher freshness of content
Time Spent per DAU : This has been seeing consistent
growth in the last few months as personalization engines
have become smarter
NPS : With continuously improving experience, NPS is likely
to start catching up in the next 1 year

14. 14
Short-form video has differentiated itself from other global social media
and content through a strong ‘Bharat’ positioning
Source(s): Expert Discussions, RedSeer IP, RedSeer Analysis
Tierwise Segmentation of Monthly Users
March ‘21
Key Highlights
Tier 2+
• Vernacular Focused Content
• Recreational genres such as Comedy, Dance, etc are
more preferred
Tier 1
• Hindi Content Preferred
• Music, Food and comedy genres are consumed
the most
Metro
• English Content Preferred
• Fashion, Education, Motivational content is sought for
Tier 2+
Tier 1
Metro
Short Form
Video
30-35%
30-35%
35-40%
40-45%
30-35%
20-25%
60-62%
20-22%
18-20%
89-91%
4-5%
5-6%
Indian Population

15. 15
Note : 1. Digital Content includes online content streams such as OTT Video, Social Media, OTT Audio, etc.
Source(s): Expert Discussions, RedSeer IP, RedSeer Analysis
Key findings from user survey
N=535
Vernacular content
driving the usage
Data privacy cited as a
major concern
Live commerce high on
wishlist
55% users mention availability
of regional vernacular content
as the key reason for using
short-form video apps
60% users mention data
privacy as the key challenge
while ~50% complained
about streaming quality
unregulated content
~45% users would like more
professionally generated
content. Live commerce and
online education are key
features in the user wish-list
(~40% each)
User perspectives show varied use cases and strong value prop

16. 16
160-170
~48%
320
~76%
100% 660
500
~60%
Access to Internet
population with access to inTotal
ternet
Active internet Users
Uses social media, google,, but
doesn’t transact online
Short-form Installed Base
Users who use short-video apps like JOSH,
Moj, MX TakaTak
FY 25 Projections
Online Shoppers
At least one transaction on online retail
platforms in a year
Short-form video is moving from middle of the internet funnel towards
the top
Note(s): 1. An internet enabled device could be used by user’s family and hence they are also counted under access to internet
Source(s): Expert Interviews, RedSeer IP, RedSeer Analysis
Internet Users Funnel
FY 21 - 25
In Mn

17. 3.
Strong network effects
fuelling ecosystem
growth leading to large
monetization potential
for both influencers and
platforms

18. 18
Users and influencers feeding each others’ growth on the platforms
Source(s): Expert Interviews, Consumer Surveys, RedSeer Analysis
Growing influencers on
platforms
Increasing user
base
User View Influencer View
Strong network
effects
Strong network
effects
Influencer availability is the
most important decision
making criterion for 50% of
users to choose the platform
Large user base is the most
important decision making
criterion for 65% of
influencers to choose the
platform

19. 19
Self motivation propelling the influencer ecosystem driven by
highest income potential in gig economy
10+ Million
(top content creators on
the platform)
Elite Influencers
Mega Influencers
Upcoming Influencers
1+ Million
(famous but not the top
content creators on the
platform)
1 Million
(budding creators)
Followers Monthly Earnings¹ Key Highlights
~ $20-40k
~ $1.5-2.5k
~ $40-200
• Exclusive contracts with apps
• Multiple brand deals
• Contracts of 6 months with apps
• Few brand deals
• Masses consume educational and
music content the most
• Caters to a broader age group
Note(s: )1. Inclusive of all sources including brand deals
Source(s): Expert Discussion, RedSeer Analysis
The excess of time due to staying at home, coupled with the short-form platforms adopting a model wherein the pay
monthly to the content creators has led to more people taking up content creation on these platforms.
Earning potential of content creators
on short form apps

20. 20
Vast earning potential at the top-end of influencer pool leading
to strong motivation and higher platform satisfaction
Source(s): Expert Interviews, RedSeer IP, RedSeer Analysis
The potential for Pro’s across competition is lesser :
Cabs : 8X , Foodtech Delivery Partner : 4.2X, Salon
Other services : 20X
Vast earning potential… …leading to higher satisfaction
Part-timers
(Bottom 75%)
Aspirers
(Next 20%)
Pro’s
(Top 5%)
300X
Strong
motivation to
continuously
move-up
Satisfaction of Partners across Internet Sectors
March 2021
300X
X
49%
Shortform
(Creator)
FoodTech
(Restaurants/
cloud kitchen)
48%
eCommerce
(Seller)
35%
Home Services
(Agents)
32%
eMobility
(Driver)
9%

21. 21
Digital media is one of the fastest growing advertising channel
with $2.37 Bn+ annual spend
Source(s): Expert Discussion, RedSeer Analysis, Dentsu-e4m-Digital Advertising Report 2021
Ad Spends on Digital Media by Format %, FY21
What are the reasons for exploring Short-form Platforms?
$2.37+ Bn
Digital Spends
in FY21
29%
28%
24%
16%
4%
Social Media
Others
Online Video
Paid Search
Display Banners
• Social Media and Online Video constitute more than
50% of the digital media ad spend in India
• The FMCG and media entertainment verticals
spend the largest share of digital media budget on
online video, making them the biggest sector to
advertise on short-form video platforms
• Indian Short-form platforms support more than 10 languages
• Helps brands in reaching unexplored language dominated market
• 41% of the users of the age group between 16-24 years
• Helps new age and FMCG brands in targeted advertising
• Various ad formats are available for the advertisers to choose from
• Have high engagement rates and user stickiness
• Rates for advertising is lower compared to other social platforms
• CPM rates for TikTok are as low as $1 whereas it can go as high as
$4 for Facebook’s news feed and stories
Diverse Languages
Younger Population
Effective Video Advertising
Cheaper Alternative

22. 22
Strong advertiser interest in short-form video platforms
Source(s): Expert Discussion, RedSeer Analysis
What are the factors that can be worked on by
the platforms?
What are the factors that interest the brands/
advertisers?
Advertisers need to be made aware about
advertising opportunities on short form platforms
To capture the audience visiting short-form
platforms not available on other platforms
Immense opportunity for influencer marketing
Lack of Awareness
Extending brand reach
The short-form platform market is highly
fragmented with lack of advertiser awareness
around competitive positioning
Fragmented Market
Brand building
Advertisers incur low cost of production as
compared to other platforms
Low Cost of Production
Presence of content in vernacular language helps to
reach wider audience
Diverse regional languages
Collaboration with big influencers/celebrities for
higher traffic
Need to on-board big influencers
Platforms to provide more transparency in ad
measurement/engagement
Higher Transparency by platform

23. 23
Strong monetization potential across ads and live commerce
Source(s): Expert Discussion, RedSeer Analysis
Social Commerce
Live Commerce
Viewers purchase products in real time while watching products in
action and interacting with a host of a live show
Viewers get tips and
can shop the products
featured directly
Case Study: Walmart tied up with TikTok to host a livestream
shopping feature in March 2021
+
Content creators share videos about their experiences and post
reviews and e-commerce brands can list their products
Purchase
option while
watching
videos
Video reviews
are available
for products

24. 4.
Consumer
and Influencer
experience defining
the market leaders
and laggards

25. 25
Note(s):1. An internet enabled device could be used by user’s family and hence they are also counted under access to internet
Source(s): Expert Interviews, RedSeer IP, RedSeer Analysis
Platforms with more than 50% awareness considered for
further analysis
MX
TakaTak
Prime Focus of
the Study
40 + Short video apps
Elimination Criteria
100%
~50%
~40%
~10%
Top apps in Indian
short-form video space
In App Short-videos (Instagram
Reels, FB shorts, Youtube Shorts
Gaana hotshots, etc.)
Chinese Short-form Apps
Indian complete Short-video
apps with user awareness 50%

26. 26
Josh – Fares higher on the NPS primarily on the back of
increased satisfaction ( 47%) of Tier 2 users, primarily
emerging from the Hindi-belt of India
Moj – Performs well in the vernacular region, leading to
best satisfaction (51%) in Tier 2+ , second best (38%) in
Tier 1 cities
MX Takatak – Secures the highest satisfaction ( 38%)
across the competition in Metro cities
Roposo – While Roposo does reasonably well in Tier
1+ cities (garnering ~30% NPS), it’s Metro users’
satisfaction is at 11%
Source(s): RedSeer Analysis, User Surveys, RedSeer IP
User Engagement vs. User Satisfaction ( NPS )
Shortform platforms
Platforms with a strong localization and a better tech stack have
enabled a higher user satisfaction
Leader
Challenger
Challenger
0
50
100
20% 25% 30% 35% 40%
User Satisfaction (NPS)
User
Engagement
(DAU
X
Time
Spent
–
Mn
Mins)
Indexed
to
100,
~950
Mn
mins
=100
Roposo
MX Takatak
Moj
Josh

27. 27
JOSH’s high NPS is primarily driven by
increased satisfaction ( 65% ) of its influencers
in the age group of 18-35 years, who form the
bulk of the platform’s influencer base
MX Takatak comes second to best in terms of
Influencer satisfaction, as its major cohort of
influencers garners an NPS of 53%
Influencer Satisfaction (NPS)
Average
Followers
(#Mn)
Indexed
to
100
Leader
Challenger
Challenger
0
50
100
20% 30% 40% 50% 60% 70% 80%
Roposo
MX Takatak
Josh
Moj
Note(s): 1. Average followers considered for top 30 influencers on the platform
Source(s): RedSeer Analysis, Influencer Surveys, RedSeer IP
Influencer Satisfaction (NPS) Vs Average Followers1
Shortform platforms
Platforms offering a wider reach and higher follower
engagement to influencers have garnered higher Influencer NPS
Size Represents#
Average Views

28. 28
Source(s): RedSeer Analysis, Influencer User Surveys, RedSeer IP
Parameter level performance
Shortform platforms
While most of the players draw similar traffic on their platforms,
leaders have better engagement, retention and influencer ecosystem
Engagement
Metrics
Total MAU
Total DAU
# of sessions per DAU
# of minutes per session
Time spent per DAU
Retention ( Day 30)
Influencer
Metrics
Average Followers
Average Views
Average Likes
Average Shares
Satisfaction
NPS-Users
NPS-Influencers
MX TakaTak
Leaders
Laggards

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