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Home Media And Entertainment Advertising The Business Opportunity in India Vernacular News and Content Industry: Ken Research

The Business Opportunity in India Vernacular News and Content Industry: Ken Research

How Vernacular News And Content Industry Is Positioned In India?

India Vernacular News and Content industry display significant growth since 2017 growing at double-digit CAGR ~%. Vernacular platforms revenue stood at INR ~ Cr during 2019 and witnessed massive growth at a CAGR of ~% due to the impact of Covid-19 pandemic. India is the epitome of diversity with people’s attachment towards their native language and culture. People here prefer consuming content in Indian Languages, with English speakers accounts for only ~% of the population. The market has been fragmented with multiple players entering the industry over the past few years, owing to government support and increasing content consumption in the country. The market witnessed a massive growth in the past few years driven by Monetization efforts, reaching to mass, regional language users and new audience with covid-19 leading to high internet penetration clubbed with low tariff data in the country.

India Vernacular Market is fragmented with two players having the majority of the market share at ~%. The 10 major players together have more than three fourth of the market, with multiple local players in the countries targeting specific regions and populations. The market is fragmented with many players operating in particular regions of the country, offering two or three local languages and having very insignificant market share. Social media vernacular platforms have significant number of users but contribute less in the market share value due to low revenue owing to limited monetization of services.


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India Vernacular Industry Segmentation

By Business Model (Aggregator, Integrator, and User-Based)

The vernacular Industry in India can be segmented on the basis of Business Model: Aggregator, Integrator and User-Based where Vernacular Aggregator platforms account for the highest share at XX% as compared to the Integrators and User Based on the basis of revenue generated in the year 2022.

By Type of Content (Video and Written)

The vernacular Industry in India can be segmented on the basis of Type of Content: Video and Written content. Written content accounts for a larger share at XX% as compared to Video content on the basis of revenue generated in the year 2022.

By Type of Region (North, West, East and South)

Vernacular Industry in India can be segmented on the basis of Region: North, West, East and South where North and South region account for majority share at XX% as compared to West and East on the basis of revenue generated in the year 2022.

By Language Proportion (Hindi, English, Tamil, Telugu, Malayalam, Kannada)

Vernacular Industry in India can be segmented on the basis of language: Hindi, English, Tamil, Telugu, Malayalam, Kannada where Hindi and Tamil language accounting for the majority share at XX% as compared to English, Telugu, Malayalam, Kannada and others on the basis of revenue generated in the year 2022.

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By Operational Model (Free and Paid)

Vernacular Industry in India can be segmented on the basis of the Operational Model: Free and paid where Free Users account for the majority share at XX% as compared to Paid Users on the basis Service Obtainable Market in the year 2022.

Cross Comparison by Business Model

A comprehensive cross-comparison has been built by business model (Aggregator, Integrator and User-Based) basis of multiple parameters highlighting the segmentation comparison between entities with the different business model.

Cost Comparison between India Vernacular Players

Vernacular platforms charges cost from companies looking to run advertisements on the platform, and works on Cost per Click, Cost per Mile and Cost per Day model. Cost of advertising varies on factors such as days of campaign, budget, platform users, target audience, click-through rate conversions among others. Cost per day target audience of a platform in a single day, majorly preferred by companies focusing on a particular region. With CPC being the most prevalent mode of charging advertisers, he average cost charges by the vernacular platform under CPC is Rs. XX.

Cross Comparison of multiple platforms basis of cost has been built in the report, to analyses the market from advertisers’ point of view.

Digital Advertising Industry Composition in India

Digital advertising industry is growing at a CAGR of ~% from 2016 to 2021 with the market expected to grow at a double digit CAGR of ~% till 2026. The major industry advertising on the online channels have been segmented under different sectors with FMCG and E-commerce having the highest share at ~~%. The share of digital advertising in the total advertising have increased, with the share of digital advertising expected to be highest mode of advertising by 2025.

Vernacular will constitute a major segment in the online advertising spend in the coming year, with brand realizing the awareness of marketing in localized content to tap the local audience for their product.

Comparative Landscape in India Vernacular News and Content Market

Competition is observed to be fragmented in the India Vernacular space with majority of market being acquired by two largest players. The comparison has been built on multiple factors which includes monthly and daily active users, financial parameters, company information, and different models among others.

India Vernacular Market Future Outlook and Projections

Indian Vernacular market is expected to expand with a double digit CAGR at XX% in between 2022 and 2027 on the basis of revenue generated. It is anticipated that Vernacular industry will grow owing to factors such as increasing internet penetration and better content offerings in a competitive landscape in the coming years. Indians has been culturally conservative towards native language and serves as the perfect audience for vernacular players. The existing news and content companies not in the vernacular space are looking to expand in the industry by offering new languages and relevant information to their platforms. Emergence of Koo is the major landmark in Vernacular social media players where it is competing with the global giant Twitter through its offering in only India languages excluding English. The market growth will be driven by increasing monetization of platforms, acceptability of people to consume in native languages and Vernacular ecosystem expansion.


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