As the race for short video apps heats up, with all of them likely to have ad-led monetization models, "a short thread" on why the size of the prize is so enticing

Drawing from a more mature market: online ad spend in the US has taken share from print, radio and TV to more closely reflect where people are spending time, accounting for ~50% of all ad spend today (1/n)

Google and Facebook have historically taken the lion's share of this new online spend. As per Bernstein, they accounted for 90% of all new ad spend last year (source: https://www.economist.com/business/2020/06/27/the-advertising-business-is-becoming-less-cyclical-and-more-concentrated) (2/n)

An interesting shift to consider here - Will this oligopoly sustain or will the cultural dislocation cause a reset in customer browsing behavior? (3/n)

In India, digital accounts for 30% of time spent on media and will only grow - as a benchmark, US is at 50% today (my view: online share is under-represented here given time & attention are different, and the report counts time spent with TV+mobile as time spent on both)

Ad spend is yet to reflect this shift in time spent, accounting for only 20% of the total ad spend right now, but poised to add $6B over the next 5 years (5/n)

Where does this online spend go? The lines between online video and social media would likely blur, contributing to over half of this massive market! (n/n) (source: https://dentsuaegisnetwork.in/uploads/digital_reports/DAN-e4m-Digital-Report-2020-Web-C3.pdf)