India’s homegrown short-video platforms like Sharechat, Moj, Chingari and Josh, are seeing renewed advertiser interest, but not without criticism. These platforms, once buoyed by a surge in user engagement during the pandemic, later struggled with monetization challenges, content moderation issues, and algorithmic shortcomings. While global giants like Instagram Reels and YouTube Shorts continue to command higher ad rates and greater user engagement, domestic platforms are attempting a resurgence by leveraging hyper-localized, culturally relevant campaigns. However, concerns persist over their ability to provide the technological sophistication, robust metrics, and creator monetization tools that brands seek in an increasingly competitive digital advertising market.
The trajectory of homegrown short-video platforms has been turbulent. After a pandemic-era boom, many saw a decline, grappling with monetization challenges and concerns over content moderation. Now, these platforms are staging a comeback, driven by their emphasis on vernacular content and strategic differentiation. Still, some industry experts caution that they continue to face hurdles, including deficiencies in algorithmic refinement and the lack of robust metrics to measure campaign effectiveness.
Advertising spending on short-video platforms in India is expected to grow by 30–35% this year, according to industry estimates. The shift highlights a broader transformation in digital marketing – where short-form video is no longer just about engagement but increasingly a driver of conversions.
YouTube Shorts continues to dominate ad expenditures in this segment, capturing an estimated 50–55% share due to its search-driven discoverability, high-intent audience, and strong monetization opportunities for creators. Instagram Reels follows with a 35–40% share, leveraging engagement-heavy formats, social commerce integrations, and brand collaborations. Meanwhile, homegrown platforms currently account for just 5–10% of ad spending – a figure expected to rise as advertisers recognize their ability to craft hyper-local campaigns.
A market on the rise
In the 2023–24 fiscal year, Indian short-form video platforms generated between $90 million and $100 million in ad revenue. Projections suggest that this figure could surge to between $3 billion and $6 billion by 2030, highlighting the shift toward affordable yet precise digital advertising solutions.
Gaurav Jain, Chief Business Officer of ShareChat and Moj, notes that advertisers are increasingly prioritizing Tier 2 and Tier 3 markets, where 86% of users consume content in their native languages. This shift enables brands to craft campaigns that resonate authentically with regional audiences. The combination of granular targeting, interactive ad formats, and creator-led engagement is positioning homegrown platforms as strategic contenders in a fragmented digital landscape.
“Ads in regional languages achieve twice the click-through rate compared to non-regional counterparts, translating into measurable business impact,” Jain said.
Key industries driving growth in online video advertising include fast-moving consumer goods (FMCG), beauty and personal care, and electronics—sectors that rely heavily on high consumer engagement and visual storytelling.
Jain further highlights the role of regional creators in shaping advertising trends. According to him, 68% of festive purchases on ShareChat and Moj are influenced by hyper-targeted campaigns, while 47% of influencer marketing efforts now focus on regional creators. During local festivals such as Chhath Puja and Onam, engagement on these platforms spikes by nearly 200%.
The metrics challenge
Despite their growing appeal, homegrown platforms continue to face scrutiny over their ability to provide sophisticated algorithms and performance-tracking metrics. Some advertisers remain hesitant, citing concerns about the ability to measure return on investment effectively.
“There is a captive audience, and these platforms allow for experimentation, but deficiencies in algorithms and measurement capabilities remain a significant challenge,” said an executive from a major FMCG brand.
Rumi Ambastha, Vice President of Marketing at Mila Beauté, echoed similar concerns. “For me, the primary issue is always the metrics. While demographic insights – such as age, gender split, and daily active users – help guide decisions, the real value lies in precise measurement tools that determine the success or failure of a campaign.”
Monetization and the competitive landscape
Without a strong value proposition for both advertisers and creators, homegrown platforms struggled to maintain momentum post-pandemic. While short-form video continues to thrive, the market remains dominated by YouTube and Instagram, which have established vast user bases and monetization frameworks. Platforms like Moj and Chingari, though still operational, command a relatively small share of advertising expenditure due to weaker engagement metrics and monetization tools.
“As brands continue prioritizing platforms with higher return on investment, YouTube and Instagram will remain the dominant players,” said Rishabh Mahendru, Vice President of Client Success & Growth at AdLift.
He added that smaller players, including Moj and Chingari, face lower ad rates due to their limited scale. “Unless they introduce innovative ways to attract advertisers and retain users, ad rates on these platforms are likely to decline further,” Mahendru explained.
Currently, YouTube Shorts and Instagram Reels control between 85% and 90% of India’s short-video advertising market. While homegrown platforms persist, they remain a secondary choice for advertisers seeking large-scale reach and performance-driven campaigns.
Ambika Sharma, Founder and Chief Strategist at Pulp Strategy, argues that homegrown platforms failed to differentiate themselves meaningfully. “Without a strong monetization model for both creators and advertisers, they were always running on borrowed time—and venture capital,” she said. Meanwhile, Instagram Reels and YouTube Shorts not only filled the void but dominated the space. With robust technology, an extensive audience base, and well-established ad ecosystems, these platforms continue to attract the lion’s share of digital advertising investments.
As the digital advertising market expands – projected to exceed $20 billion by 2032 – short-form video platforms are poised to capture an increasing share of ad spending. Whether homegrown platforms can carve out a sustainable niche amid the dominance of global giants remains an open question.