Digital Advertising in India and disruptive trends

The advertising industry has found new, unique and effective ways to communicate to the target audience through digital mediums. This mode of communication geared up following the COVID pandemic. Further, a surge in the usage of smartphones and internet services has opened many doors for digital advertising. As per our data, digital ad spending in India is expected to become 2.5X in the next five years to USD 21 Bn.   

At the centre of this digital shift is the user-generated content and influencer ecosystems that can drive highly targeted advertising. This strong ecosystem of ~2.5 to 3 million creators is expected to drive marketing spending of $2.8Bn- $3.5Bn by 2028.   

1. © 2022 Redseer consulting confidential and proprietary informationDubai. Bangalore. Delhi. Mumbai. Singapore. New York
January 2023
Digital Advertising in India
and disruptive trends
Creator Marketplace:
Bridging Gap Between
Brands and Influencers in a
Ballooning Digital Ad Market
101010010

2. The advertisement industry in India witnessed a digital disruption
in the last decade as number of people using smartphones and
internet services skyrocketed. This prompted the emergence of
several consumer internet models and sectors with a huge
potential for digital advertisements. As India witnesses a looming
global economic uncertainty, digital advertising is expected to
see a muted growth of ~8-10% in FY23. However, as the
economic tailwinds pick up from FY24, the digital ad spend is
expected to increase 2.5X to $ 21 Bn by FY28.
As digital ad platforms such as eCommerce, gaming, and digital
media grow, we can expect to witness SMBs and large
enterprises increase their digital ad spending significantly. In
contrast with Platform Generated Content- PGC, engagement
on UGC is 2X higher as people spend more time consuming
bite-sized content they resonate with. Growth in UGC will
empower individual creators or influencers to build their digital
identity, which brands can leverage for digital ads. This strong
ecosystem of approx 3 million creators is expected to drive
marketing spend of $ 2.8-3.5 Bn by 2028.
Multiple creator management agencies are leveraging the
opportunities available due to the emerging digital ecosystem by
acting as intermediaries between brands and creators. However,
it brought with it challenges and a gaping divide between the
creators and brands. As the creator economy grows, a one-stop
influencer platform, ‘Creator Marketplace’, is emerging to
bridge this gap.
Executive Summary
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1.0 A peek into India’s digital advertising spend
The last decade was an era of digital disruption across
customer facing businesses. This was due to the
exponential growth of mobile phone users and the
proliferation of the internet in population centers. This
paved the way for the emergence of multiple consumer
internet models and digital sectors such as eCommerce,
Fintech, EdTech, FoodTech, eHealth, OTT, Online Gaming,
and short-form video (SFV) content.
Advertising, traditionally a haphazard affair, consisted of
brands broadcasting messages to a large audience in
hopes that it would reach their intended targets. With the
advent of digital platforms, marketers could reach their
target audience through multiple channels. Advertisement
market, both globally and in India, is witnessing a
paradigm shift towards ad spending on digital media
channels.
Developed economies that have a strong consumer
spending also commit a significant expenditure towards
advertising. For example, expenditure of the United States
on advertisement when measured as a percentage of its
GDP is 1.4%, out of which 64% goes to digital ads. The UK is
at 1.3% while a developing country such as India is catching
up at 0.5% with digital ads constituting 53% of the
expenditure.
It’s also essential to understand that consumer spending
and advertisement spending are directly correlated. With
India’s PCFE expected to grow ~ 6-7% over the next 5
years the advertising expenditure is bound to follow.

3. Developed economies have evolved in their advertisement journey, reflection of their
consumer spending
-These countries has also been early adopters of digital advertising platforms
Global Ad Expenditure- by type of channel
CY 21, USD Bn
DigitalTraditional
Ad Expenditure/
Real GDP Ratio
(CY 21)>>
$269
36%
64%
US
$118
18%
82%
China
$39
23%
77%
UK
$15
47%
53%
India
$13 $13
57%
43%
Brazil
61%
39%
Indonesia
1.4% 0.6% 1.3% 0.5% 0.9% 1.2%
1.1 Looming economic uncertainty in 2022
And as consumer spending increased, we see a direct correlation to Ad spend in the country
-With growing consumption expenditure in India, we expect Ad spend to pick up pace
Consumption expenditure vs. Ad Expenditure
CY 21, USD Bn
$0
$0 $5 $10$15
Brazil
China
Spain
Italy
France
Nethaelands
Developing Contries
Developed Contries
Canada
Switzerland
Belgium
Sweden
UK
USA
Australia
Japan
KSA
RussiaIndia
$20$25$30 $35 $40$45
$100
$200
$300
$400
$500
$600
$700
$800
Ad Expenditure/ Captia
PCFE/ Captia
Advertising expenditure and PFCE per capita has a correlation of .9
With the rise in consumer
spending the advertising
spend follows
India’s PCFE is expected to
grow ~6-7 % for the next
5 years, one of the fastest
growing amongst Developing
Contries
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Note(s):1. Estimates for India for FY22
Source(S): World Bank,GroupM, Redseer Research Analysis
Note(s):PFCE refers to private final consumption expenditure
Source(S): World Bank,Redseer Analysis

4. Collectively, major global advertising platforms such as
Alphabet, Meta, Amazon, Snapchat, and TikTok
experienced revenue growth of about 26% CAGR over the
last 3 years. However, growth in market share for these
traditional digital platforms has been at a snails’ pace in
the post-pandemic economic uncertainty. Brands are
focusing on targeted and performance ads and favoring
platforms such as Amazon and TikTok reels leading to
accelerated growth.
The varied impact on digital advertising can be attributed
to several factors across economic headwinds,
technology interventions, and increased focus on
advertisement ROI. Further, they can be summarized into
four major factors:
Slowdown in the global economy: Inflation and
rising interest rates have hit the brakes on the
global economy.
Shifting Ad allocations to emerging platforms:
Amazon and TikTok’s content formats are more
popular among new-age digital users worldwide.
Apple’s tech policy change: App Tracking
Transparency (ATT) policy was a significant blow
to Meta and Alphabet’s earnings across the globe.
Amazon, which uses first-party cookies, stayed
resilient.
1.1 Looming economic uncertainty in 2022
FY19 FY20 FY21 FY22 FY23F FY28F
1.2 Ad spending will witness a steep climb after a year-long hiatus
Economic headwinds are picking up since early this year and will create a phase of stalled growth for India’s digital ads spending
in FY23. Shifting short-term objectives from growth to profits for internet-based businesses and PE/VC firms would translate
into reduced ad expenditures.
Consumption expenditure vs. Ad Expenditure
CY 21, USD Bn
~23% ~33% ~43% ~53% 54-55% 65-70%
...%
$2
$4
$5
~$8 ~$8.5-9
~$21
+43%
+69% ~8-10%
~19-21%
Covid led accelerated digitization
across sectors - formed a major
push towards digital advertsing
In FY24, we expect a rapid growth
in ad spend as economy grows, as
indicated through positive consumer
sentiments in CCI¹
Digital ad spend as
% of total ad spend
Note(s):1. CCI refers to consumer confidence index 2. market sizing includes overlap of google ad network worth 2-3 Bn
Source(S): RBI, Expert Discussions, Redseer Research,Expert Discussions
The same can be expected from FMCG, retail, and apparel sectors as increased commodity prices exert pressure on margins.
Businesses are already implementing cost-cutting measures, which include slashing advertising budgets.
However, it should be noted that a significant underreporting of digital ad spending in India was discovered across various media
agencies. We found that out of a total of $ 15 Bn spent on advertising in FY22, 53% went into digital advertisements indicating a
growth nested within the overall downturn.
Advertising Head, Leading eCommerce Platfrom (India)
“Budgets have been reduced for search advertising but has increased for
performance marketing. Overall, the spending would be like last year”
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5. While the existing giants, Alphabet and Meta Ecosystem,
take up about 70% of the digital ad market share,
alternate platforms such as digital content platforms (OTT
Video, OTT Audio, Shortform video, etc.) and eCommerce
are quickly gaining ground.Advertisements placed closer
to the point of purchase on eCommerce platforms have
proven to be highly effective at driving conversion.
Increased efficiency in reaching the target audience on
OTT platforms skyrocketed the subscriber base during the
pandemic and made them attractive to marketers. These
platforms feature non-skippable ads that are precisely
made for the intended audience.
2.3 Incumbents are losing market
share to alternate digital channels
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Over half of India’s population now uses smartphones for
communication and content consumption. On average, a
user spends ~7 hours a day on their smartphones and
browsing various applications, social media, and digital
platforms. Browsing and engagement on social media and
apps are increasing, and social media influencers have
become the trusted source of information. In this scenario,
digital channels are taking center stage as consumers’
journey from product/ brand discovery to purchasing is
increasingly getting digitized.
As these digital platforms scale and engage a sizable user
base, marketers are increasingly advertising on them for
the precise target audiences. Some of the most popular
digital advertising platforms include eCommerce, short
videos, OTT, social media, long form video, and news
outlets
India’s internet funnel continues to grow stronger, as
evidenced by the large user base of ~780 Mn internet users
and increased adoption across different categories. As
more people are drawn to the emergent ecosystems based
on personal interest and commercial niches, marketers gain
access to highly relevant and efficient ad channels..
Key sectors such as jewelry, healthcare, lifestyle, travel &
hospitality, etc., will continue to keep the ad spend low and
the market flat in FY23.
While declining ad spend in key sectors such as consumer
internet, gaming BFSI, etc. will drag down the ad spending
for FY23, sectors like automobiles, healthcare, telecom are
expected to increase their spend on advertising.
With every economic downturn, consumer morale returns
eventually; in this case, by FY 24, the macroeconomic
engines will pick up momentum again.
Going forward, consumers will find themselves resorting to
digital channels for decision-making and purchasing. This
will necessitate brand creation and regular re-targeting by
businesses and advertisers. While industries such as
eCommerce, gaming, IT, and tourism have been big
spenders on digital advertising, companies across sectors
like media, CPG & retail, and automobiles are shifting from
a traditional to an omnichannel mix to keep up with their
changing customer behavior.
Migration of all the major industry verticals to increase
their spending on digital advertising is set to propel the
industry on a steep growth trajectory to a $ 21 Bn market by
FY 28.
2.0 Digital ads are becoming
essential as online platforms
redefine the retail experience
Digital advertising has come a long way since early last
decade. Starting with search ads to display ads and now
video ads.As the internet penetration grows, users are
spending more time on smartphone watching the content,
it became one of the fastest growing form of media
consumption in India.Video is the most consumed content
online for entertainment, information, or education.
2.1 Videos are the fastest-growing
ad format
The same can be expected from FMCG, retail, and apparel
sectors as increased commodity prices exert pressure on
margins. Businesses are already implementing cost-cutting
measures, which include slashing advertising budgets.
However it should be noted that a significant underreporting
of digital ad spending in India was discovered across various
media agencies. We found that out of a total of $ 15 Bn spent
on advertising in FY22, 53% went into digital advertisements
indicating a growth nested within the overall downturn.
Good quality videos have the highest engagement rates,
while short and micro videos of 10 seconds are the most
popular formats on digital platforms.
Endorsements from influencers and product description
shorts are favored by advertisers as they have the best
chance of grabbing the attention of target groups from the
online clutter.
-Marketing Head, Leading EdTech Player
“Video Ads on YouTube can evoke
emotion more than any other form
of content, and it’s the best way to
gather attention for a new launch”
India digital advertisement market by type of format
CY 19-FY 28F, USD Bn
FY 19FY 20FY 21FY 22FY 23F FY 28F
CAGR
(23-28F)
Video
Display
Search
38%37%35%
35%
35%
33%
38%
39%
38%
27%
27%
29%
40%
25%
41%
40%
25%
22%
$2
$4
$5
$8~$8.5-9
$21
~19-21%
+69%~8-10%
~34%
~22%
~18%
Methodoloy notes:
Google search primarily contribute to revenue from search ads Meta ecosystem,
Google network product eCommerce platforms,audio OTT,
classifieds primarily contribute to revenue from display ads
Meta ecosystem, YouTube properties,OTTs, short video platforms primarly
contribute to revenue from video ads
Redseer Analysis, Expert Discussions, Desk Research

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While content platforms feature faster-emerging ad
formats, the industry drivers are gaming and eCommerce.
As more people shop online than ever before, ads placed on
these platforms generate the highest ROI. Gaming, which
has a rapidly growing community, is witnessing an Ad
revenue growth that’s in par with content platforms.
Although the two are the largest amongst the alternate
channels, eCommerce generates nearly twice as much
revenue as gaming.
India digital ads market - by ecosystem of platforms
FY 19 – FY23F, USD Bn
FY19
65%
14% 14%
12%
13%
13%
5% 5%
13-15%
67%
65%
68% 66%
FY20 FY21 FY22 FY23
4%
9%
9%
5%
7%
9%
9%
9%
10-12%
7%
6%
6%
4%
$2
$4
$5
~$8
~$8.5-9
Others²
Content¹
Gaming
eCommerce
Alphabet & Meta
Ecosystem
13%
46%
48%
37%
37%
CAGR
(19 - 23F)Indicative Companies
Content and gaming platforms are emerging as the fastest-growing digital ad platforms
Advertisement on alternate platforms of digital advertising
FY 22, USD Mn, %
Short videos, as a domain, belong to influencers and
average consumers to have authentic content that
resonates with users. Unlike the production-heavy ads
made by established companies, upcoming brands are
making their mark in the consumer space by leveraging
relatable influencer content. They are able to grab
attention with highly sharable content and leave an
emotional impact on the audience to establish the brand.
With increasing visibility on emerging consumer internet company platforms,, ad inventory space on these platforms has
increased significantly leading to rising Advertiser investment here
0%
0%
25%
50%
50% 300% 350%
Ad Revenues USD Mn (FY 22)
400% 1000% 1050%
75%
100%
Automobiles
Audio OTTs
Video OTTs
eCommerce
Gaming
News Platforms
Short Form
Real Estate
Faster emerging ad formats
Formats driving the industry size
Ad Revenue CAGR�(FY19 - 22)
Indicative
Companies
3.0 SMBs ramping up digital ad spending
With digital platforms came the ability for marketers to
reach out to target groups across various categories.
Small and Midsize Businesses -SMBs that mostly adhered
to traditional ad campaigns have embraced digital
advertising owing to its democratized access. As more and
more SMBs digitize their operations, digital advertising
becomes a natural next step.
Consider the example of merchants such as traders,
service providers, Kirana owners, and small shopkeepers.
Digital enablers such as ePayments, eDiscovery, and
eCommerce make it possible for merchants to have an
online presence. Merchants involved in online trade can list
themselves on online classifieds with digital marketing
enabled through bundled services. The result is a
significant boost in awareness and customer acquisition.
Note(s): 1.Content includes Video OTT, Audio OTT, Shortform and News Platforms
2. Others includes classifieds, reality, automobiles,food delivery platforms and job platforms
Source(S): Industry reports, Annual fillings, Redseer Analysis
Source(S): Industry reports, Annual fillings, Redseer Analysis

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Ad expenditure in India
FY 22, USD Bn, %
Ad expenditure in India
FY 28F, USD Bn, %
Driving the growth in SMB digital ad spending would be several factors starting from their digitization to the advantages of
customer targeting and self-serve models enabled by digital platforms. Giving an additional boost is also the customization of
platforms to handle key SMB hurdles and the simplification of the digital solution to make it efficient and economical.
While there’s a tremendous opportunity for discovery and growth, challenges remain for the wider adoption of digital ads in
SMBs. Many merchants still lack awareness regarding the potential for reach & growth and the ROI. They are also unaware of
the opportunities & channels and the ease of execution on the platforms. Merchants are also held back by the lack of capability
to leverage the power of advertising.
In contrast to large enterprises, SMBs spent more on digital than traditional advertisements in FY22. Looking at the expenditure
breakup, SMBs contributed barely 5% of the total $ 7 Bn of traditional ads, while their spending on digital ads was 30-35% of $ 8
Bn. Already contributing to about 20% of total ad spend in FY 22, SMBs are expected to increase their share to 30% by FY 28.
$8 $15
~$ 10-11
~$ 30-32~$ 21
$7
3.1 SMBs will continue to increase spending on digital ads
Contribution of SMBs in ad spend market to grow from ~20% in FY22 to ~30% in FY28;
Increasing digitization of SMBs, advantages of digital platforms in customer targeting and
self-serve ad models to drive the growth
Traditional
~95%
65-70%
30-35% 18-23%
77-82%
Digital Total Traditional Digital Total
~5%
SMBs
Large
SMBs
Large
91-94%
58-63%
68-71%
29-32%
37-42%
6-9%
Platforms are designing their product to address key SMB hurdles. Digital advertising solutions are evolving to be more easy,
effective and economical. Hence, advertisement expenditure is likely to increase with SMBs growth in India.
4.0 User-generated content rising to dominance
The growing popularity of social media and content platforms in the last decade led to the rise of User Generated Content -
UGC. Characterized by authenticity and relatability, UGC garners 2X more engagement in terms of time spend consuming media
than Platform Generated Content - PGC. The gap continues to widen between the two as more users are generating content
every day.
4.1 UGC consumption empowering individual creators
As more people join social media platforms, content consumption for videos, photos, memes, live streams, reviews, and posts
increases. The demand for engaging content spawns more quality content creators leading to a snowball effect that results in an
exponential rise in UGC. Supported by a wide follower base, creators and users thrive in an ecosystem of cyclical content creation
and consumption.
Note(s): Large refers to enterprises with turnover higher than INR 2500 Mn
Source(s): Redseer Research, Redseer Analysis

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More than 500 Indian celebrities (across
movie stars, sports, singers) are active in
Indian shortform content platforms
~80% of total Creators are in the Micro category that can provide Niche & engaging
Audience for abrand, but discoverability of such creators is difficult
4.2 Micro and macro creators
driving better customer engagement
and ROI
The Indian digital economy has over 2.5 million sizeable content creators who have emerged into 4 archetypes: Micro, Macro,
Mega, and Elite creators, with stark differences in metrics such as followers, engagement, audience category, and ease of
discoverability.
At the level of the average user, micro and macro
creators are characterized by their relatability, unlike elite
celebrities. These influencers connect with their audience
at a personal level which makes all the difference to
brands on the market.
The higher advocacy power to their niche has prompted
brands to adopt micro and macro creators for their
marketing campaigns. Working with small creators gives
the brand better customer engagement and ROI
The effectiveness of influencer marketing is well
demonstrated in beauty and personal care - BPC case
study involving the eCommerce leader Nykaa. The
brand’s affiliate program has a network of over 5400
influencers, and the top 10 beauty influencers have a
reach of 22.41 million users on Instagram. These
influencers create reels, stories, tutorials, and posts to
capture the attention of the audience.
Creator Archetypes and their characteristics
- India, DescriptiveCreator Archetypes & SizeAudience Type Use Case Engagement (%)
Cost/ Ad
Impression
Discoverability
Ease
Micro : 2.5-3 Mn
(10K- 100K Followers)
Macro : ~ 0.5-0.6 Mn
(100K- 1Mn Followers)
Mega : ~ 21 K
(1Mn- 10Mn Followers)
Elite : ~ 300
(> 10Mn Followers)
Local, Engaging,
Niche, Selective
3-4% INR 6-6.5 Low
Medium
High
High
INR 6.5-7
INR 7-8
INR 10-11
1.5-2%
1-1.5%
0.5-1.5%
Regional, Niche
National,
Genre-based
International,
All-encompassing
Celebrities Across Creators Type
Brand Awareness
New Product launch
Lead generation
Increase Sales
Build Brand Authority
Customer Loyalty
Reach targeted Audience
Improving engagement
Case study: Brands grab customer interest
through creators
4.3 China leads in leveraging
creator influence
Social commerce is an enormously popular shopping
experience and represents a major paradigm shift in how
consumers interact with brands. PRC has leveraged the
power of content creators to its fullest, leading to a 12% of
total eCommerce GMV. One of the ways it accomplishes this
is through influencer-led live commerce. \
The influencers engage with their audience in real-time
through product reviews and add direct links to purchase on
the live stream. Instead of watching ads about a product,
the target audience interacts with their favorite influencers
live and makes a purchase. The process enables them to
complete the entire purchase journey on a single stream.
China, the leader in influencer marketing, saw a CAGR of
about 50% from CY 16 to CY 20. With a similar landscape
and underlying drivers emerging in the market,
influencer-led live commerce in India can grow to $8 Bn by
2030.
With the help of influencers, Nykaa could reach 3 million
users within 48 hours and close to 100k followers for its ‘Clay
it Cool’ launch. With affiliate advertising, brands can
declutter from the crowded market and reach their target
group efficiently and economically.
Highlow
Source(S): Influencer marketplace website, Expert interaction, Redseer Research
Note(s):1.Creator # are all accounts with >10k follower base, not all will be actively monetizing
2.Used MAU of instagram, Expert Interactions & influencer marketplace website for the Creator base

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People Republic of China, the leader in influencer
marketing, saw a CAGR of about 50% from CY 16 to CY 20.
As more brands migrate to influencer-led marketing, the
eCommerce platforms in India will also leverage live
commerce, driving up influencer marketing to $ 2.8- 3.5 Bn
by 2028.
4.4 Marketing spending on
influencers in India can grow to
$ 3.5 Bn by 2028
2022
$ 0.35- 0.4 Bn
$ 2.8- 3.5 Bn
2028P
$ 2.8 Bn
$ 0.7 Bn
Base Case
Aggressive Case
Marketing Spend 1 on Influencers- India
CY 22- CY28P, in $ Bn
~45%
~40%
CAGR (22- 28P)
China’s Influencer Spend grew at a CAGR of ~50% from CY 16 to CY 20
Influencer-led brand campaigns: Brands leveraging
creator influence to reach niche audiences for higher
engagement and conversions.
Live commerce: eCommerce utilizing the opportunity
and moving to performance-based marketing to
accelerate conversions.
Gaming and e-sports promotion: Wide reach of the
online gaming industry leveraged by marketers for
brand promotion.
5.0 Emergence of the creator
marketplace
5.1 Organizations connecting
brands and influencers
Discovery of creators who are a right fit for campaigns is
a major challenge for brands and advertising platforms.
Dozens of creator marketing agencies and management
platforms have mushroomed in response to the need.
India’s 60+ organizations working toward enabling
influencer marketing are highly fragmented. While the
middlemen do help brands discover creators, the market
is plagued by high commissions, lack of transparency,
inflated metrics, and delay in payment for influencers.
-Brand Manager
“The management platforms in India only work with a select few influencers”
5.2 Organizations connecting brands and influencers
Most Indian brands and influencers connect through intermediaries as the agency is the go-to model for all. The lack of
transparency, negotiation, commission, and difficulty of execution can impact earnings for influencers putting a strain on
brand relationships. The direct model in which brands discover influencers first-hand is also riddled with difficulties in regards
to discovery and payment.
The Creator Marketplace, a self-serve model, creates a more leveled playing field that will lead enablement of influencer
marketing for digital advertisers in India. Globally, TikTok has shown success in the creator marketplace for its stakeholders,
paving the way for similar models to emerge in India.
Note(s): 1. Includes a. influencer led Brand campaings b. Content promotions by influencers
for the Media & entertainment industry c. Live Commerce payout to influencer d. E-sports
& Gaming promotion by Influencers e. Commission & fees added over the influencer earnings
going to Agencies & talent managers 2. It does not include celebrity endorsements
Source(s): Expert Interactions, Influencer Marketplace website, Redseer IP, Redseer Analysis

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5.3 Creator Marketplace bridging the gap worldwide
Creator marketplace solves every challenge that stifles the agency-based model.
Globally, the creator marketplace has proven to be an effective self-serve platform that empowers brands to connect directly
with a diverse set of influencers. It solves all the major hurdles of the influencer market economy to give the creators a fair shot
and the brands their best fit.
Source(s): In-Depth Interviews, Redseer ANalysis
Benefits & Challenges of various Brand Engagement Model
Descriptive
Type Engagement Models
Engagement models
Agency ModelDirect Model
Creator
Marketplace
Brand campaign
discovery
Ease of
Execution
Exhaustive list of creators & their
true metrics
Business & Campaign Goal
Understanding
Identifying Campaign-tailored
Influencers
Pre-built Creator Relationships
End-to-end campaign management
Cost
Commission/ Fees
In-house Human Capital Requirement
Mandatory Minimum Project Spend
Challenges in the influencer marketing economy
Discoverability challenges due to ever-widening
creator base
Finding the influencer audience match
Gaps in the communication of campaign goals
Inflated costs due to high agency fees
Lack of transparency and inefficient tracking
of metrics
Creator marketplace value proposition
Dashboard of an exhaustive list of existing influencers
Option to filter out creators based on relevant metrics
Centralized communication for easy collaboration on a
single platform
Transparent and affordable pricing
Real-time insights into influencer campaign
Creator marketplace has great potential to become a
centralized network of creators serving the 3.5 Mn
influencers and the UGC platforms. The marketplace can
become a single point for the brands to discover and
engage with creators. Since the UGC platforms already
possess content creating communities, they are better
positioned for setting up the creator marketplace.
Tiktok, was the first company to realize the importance of
a creator marketplace in making it easier for its
influencers to collaborate with brands. It set a precedent
for other platforms in China by offering high-quality
creator statistics, which enabled brands to make
data-driven collaboration decisions with influencers.
5.4 Domestic influencer marketplace set to serve approx 3 Mn creators
Creator marketplaces are now a common feature of
social media platforms in China that have a large
influencer base. It has grown into the standard model to
advertise to online consumers, the younger generation in
particular.
Realizing the need for a marketplace in India, domestic
platforms are investing in building their influencer
marketplace similar to the ones in China. Verse innovation
has a holistic marketplace that includes creator social
media metrics for brands to make better decisions about
collaborations. Currently, Verse is available in India on an
invite-only basis.

11. Verse has created a holistic marketplace
including Creator’s Social media metrics
of Instagram & YT for better decision
making by brands
Case Study on India’s Creator Marketplace- Verse Innovation
Descriptive
Creator Demographic
Audience Demographic
Social Metrics- IG & YT
Creator Content Category &
Sub Categories
Real Time Tracking/reporting
(Views, Followers, Engagement)
1
2
3
4
5
Currently only on invite basis for brands
12
3
4
Note (s): Redseer team got a sneak peek into Verse’s System
Source(s): Expert Interaction, Redseer Analysis
Conclusion
The Indian digital ad market is set to experience a growth spurt that will
expand 2.5X its current value by FY 28. As online platforms transform the
digital market, the user base is growing significantly, opening up
advertisement opportunities for big and small businesses alike. At the center
of this digital shift is the user-generated content and influencer ecosystems
that has the capacity to drive highly targeted advertising. As the creator
economy grows, it is essential to bridge the gap between brands and
influencers through a centralized platform such as the creator marketplace.
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12. Anil Kumar is the Founder of Redseer Consulting. He has been part of engagements in Internet, Private Equity,
Retail CPG and Healthcare among others. He specializes in growth and investment strategies. Anil is a believer of
the data-driven approach in solving business problems. His consulting approach leverages Data IP, sector
expertise and the client’s core hypothesis. He holds a B-tech from IIT Delhi.He can be reached at [email protected]
Report Authors from Redseer
Anil Kumar
Founder and CEO
Engagement ManagerMukesh Kumar is the Engagement Manager at Redseer Consulting and has 8 years of
experience in growth strategy engagement across internet, education, healthcare, and consumer products clients
across India, MENA, and North America. He holds a B.Tech from IIT Delhi.He can be reached at
[email protected]
Mukesh Kumar
Engagement Manager
Yash Rathi is a Senior Consultant at Redseer. He has worked on engagements in eCommerce, FoodTech, Media
and Education space. He brings project experience in domains such as index creation, due diligence, long term
strategy and benchmarking. He holds a B.Sc in Finance from NMIMS, Mumbai.He can be reached at
[email protected]
Yash Rathi
Senior Consultant
Deepanshu is an Associate Consultant at Redseer. He has been involved in growth strategy engagements in
e-commerce and retail space. He is a Chartered Accountant and holds an MBA from IIM Indore He can be reached
at [email protected]
Deepanshu Mittal
Associate Consultant
Saloni is an Associate Consultant at Redseer. She has worked on engagements in the travel, retail & media space.
She holds an MBA degree from IIM Kozhikode & aB.A in Economics from Miranda House, Delhi University
She can be reached at [email protected]
Saloni Sancheti
Associate Consultant
Ayan is a Business Analyst at Redseer and is a graduate - fresh out of Shri Ram College of Commerce. With a
penchant for problem solving, he has worked within the quick commerce, finance and advertisement industries. He
brings insight in domains such as strategy, brand positioning and finance.He can be reached at
[email protected]
Abdul Ayan
Business Analyst
Milind is a Business Analyst at Redseer. He has been involved in market research and competition analysis of
eSports, short forms and EdTech finance sector. He holds a B.Tech from IIT Kanpur.He can be reached at
[email protected]
Milind Nigam
Business Analyst
Amisha is a Business Analyst at Redseer. She has been involved in growth strategy and due diligence engagements
in e-commerce and digital advertisement space. She holds a BBA(Finance) from SSCBS, University of Delhi
She can be reached at [email protected]
Amisha Gupta
Business Analyst
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13. Glossary
1.
Affiliate Marketing
An advertising model in which a company compensates third-party publishers to
generate traffic or leads to the company’s products and services.
2. BPC Beauty & Personal Care
3. Digital Ads The Ads which are driven by online channels
4. Display Ads A display ad is a form of online paid advertising that is typically an image or a photo
5. Google Ecosystem Google Search and others, Google Network and YouTube Ads
6.
Influencer Marketing
A type of social media marketing that uses endorsements and product mentions
from influencers
7.
Live commerce Beauty & Personal Care
8.
MetaEcosystem
Includes Family of accounts (Facebook, Instagram, Messenger, and third-party
affiliated websites or mobile applications)
9.
OTT Audio Includes Gaana, Spotify, Saavn
10.
OTT Video
Includes Hotstar, Zee5, SonyLiv, MX Player, Voot
11. PGC Professionally Generated Content (PGC) is content generated by the brand itself
12.
Product eCommerce
platforms
Include platforms selling consumer merchandise and includes horizontal
marketplaces such as Amazon, Flipkart, Meesho etc.. ; Vertical platforms such as
Myntra, Nykaa, Big basket etc.; Quick-commerce platforms; D2C platforms;
13.
Search Ads
Search advertising includes ad results appearing on keyword search in search
engine, website or application
14. Shortform Platforms Include Moj, Josh, MX Takatak among others
15. SMB
Small & Medium Businesses
16. Traditional Ads
They are simply the ads which aren’t online. They are of 4 mediums – Print, TV,
Radio and OOH(Out Of Home)
17. UGC
User Generated Content (UGC) is digital content that is produced and shared by
end users
18.
Video Ads
These ads appear in 2 forms - In-stream, wherein ads get served within video
player content, - Out-stream, wherein ads get served outside the video player in
homepage or website
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14. [email protected]