How Indians Are Turning Likes Into Livelihood Via Short-Form Video Platforms

A decade ago, if somebody told you that people would earn by making videos on their phones, nobody would have believed it. However, as digital technologies and social media get deeply intertwined with our daily lives, short-form video (SFV) platforms are not only transforming how Indians entertain themselves but also earn.

You will see some dance, deliver one-liners, or create informative content, the SFV platforms have become more than just past-time for some people, growing into an opportunity to generate full-time income or become entrepreneurs.

SFV platforms are flourishing in India fueled by affordable internet and smartphone penetration. Such platforms have democratised content, giving users from Tier 2 cities and beyond an opportunity to earn from likes and shares. With a focus on regional languages and culturally relevant themes, platforms are weaving into the country’s diverse social fabric, pulling in millions of users daily.

This surge in engagement is not unnoticed by brands and advertisers. According to Redseer Strategy Consultants, while SFVs currently command a small share of the country’s digital ad spend, their high engagement levels are emerging as a goldmine still waiting to be tapped. This is particularly true as the digital ad market is projected to nearly double in the next five years, with video content set to occupy a dominant share.

How Are Indians Monetising Via SFV Platforms?

The report notes that SFV platforms are opening doors for creators to earn through various income streams, mainly;

1. Advertising: When brands associate with SFV platforms it automatically becomes a place for product advertisement, which can be of any time - from beauty, health, jewellery, food, and much more. Creators earn through sponsored content wherein brands bank on the authenticity of influencers and their followership to help connect with niche audiences, creating a win-win for both.

2. Influencer Marketing: The rise of influencer marketing has changed the way creators engage with their followers and vice versa. People on social media not only get entertained but are also influenced to either buy or consider certain products. Though it is always seen as a grey area content creators vouch for their authenticity of using and sampling products and then recommending the same to their followers. In this process, they also earn from brands for marketing, often earning commissions or flat fees for promoting products and running their campaigns. Influencers, be they micro or mega, have become modern-day celebrities who are shaping consumer choices with a relatable touch.

3. Virtual Tipping: For creators, earning is not just limited to fees or commissions from brands but also directly from their followers and fans. Fans can now show appreciation for their loved-creators directly by tipping them. This concept is still gaining momentum through live streams. Redseer projects this to become a $700-800 million opportunity by FY29 mirroring the success of similar models in China.

However, virtual tipping is limited to only a small fraction of users currently but the potential seems to be growing. With tipping as low as Rs1-2, this model is inclusive yet lucrative. Creators are figuring out ways to build a steady income from this. The SFV platforms are also amplifying this by offering perks like personalised shout-outs and exclusive interaction - making the experience richer for both creators and fans.

The report takes note of China’s example where this market has grown big. Chinese SFV platforms rake in billions annually from virtual tipping. Indian platforms are also taking cues, it finds as user awareness grows and tipping becomes mainstream.

4. Video Commerce: Bridging entertainment and e-commerce, video commerce today allows creators to promote products directly within their content. As e-commerce is already a juggernaut in India, SFV platforms have started adding a social and interactive layer to online shopping which is used by creators to create an earning stream. From live product demos to influencer-led recommendations, video commerce makes discovery and decision-making more engaging. Redseer estimates that this sector could grow 10x in the next five years, transforming how Indians shop.

Viewers can now click and purchase without leaving the app which - on both the positive and negative side - makes shopping more interactive and impulsive. The creators, however, get to earn from the brands or even better channel regular income as creators-turned-entrepreneurs selling their own products.

Currently, Indians are barely scratching into the SFV as a source of income. For users they are a source of entertainment, for creators, it’s a livelihood and for brands, they direct the line to millions of engaged consumers.

With a still expanding user base and an evolving monetisation model, the SFV platforms present a digital gold mine for short-form video creators to create solid earning streams.