ValueTheMarkets News Commentary – India is on course to soon become the planet’s biggest social media market, with the country gaining some serious ground on China. According to Statista, India’s 1.18 billion unique users will be just 33 million behind the top spot. This article examines who is seeking to capitalize on this huge market with reference to Meta Platforms Inc (NASDAQ: META), Snap Inc (NYSE: SNAP), Alphabet (NASDAQ: GOOGL) and QYOU Media (TSXV: QYOU) (OTC: QYOUF).
Meta Platforms enjoys a dominant position in terms of platforms and uses India to test out new monetization strategies. Alphabet has an already hugely successful product in the country, and one of its features looks set to go from strength to strength. Finally, Snap is seeking to leverage its massive audience in the country.
QYOU Media (TSXV: QYOU) (OTC: QYOUF) produces and distributes content created by social media stars. It has a multitude of TV channels and platforms and is attracting a rapidly growing audience.
Now, the business has brought in bonafide social media royalty to push it to the next stage.
It has appointed Indian digital leader and strategist, Raj Mishra, to the role of Group CEO of its India operations.
Mishra has held leading roles in some of the most successful app businesses in India. This includes an instrumental role at Musical.ly (now TikTok), leading it to over 150 million monthly active users.
He served as Country Head and led Musical.ly to become the most downloaded app on Android and iOS app stores. He oversaw the rebranding transition from musical.ly to TikTok after its 2017 acquisition wherein it racked up 611 million downloads in under three years.
Meta Platforms Inc (NASDAQ: META) is dominant in the Indian social media market.
The company’s flagship Facebook app has a 55% market share in the country, according to data from July 2023 provided by Statista. Additionally, the same source has its Instagram app as the second biggest platform in the country, with a market share of 36%.
Such is the might of the platforms that they have both been confident enough to launch new paid subscription services for Indian users who want an ad-free experience. This is symptomatic of how the company has been operating Facebook, Instagram and WhatsApp in the country, with the Financial Times noting that India is often used as something of a testing ground.
As well as introducing subscription fees, innovations include click-to-message ad formats. These connect customers and businesses within various chat applications, with the company taking home commission from all business done via the route.
Alphabet (NASDAQ: GOOGL) has a huge interest in Indian social network users too. That’s because India is the largest audience for the company’s YouTube video sharing and social media platform.
Data from Statista shows that 462 million Indians tuned in to YouTube in October 2023, with the United States in a distant second place with 236 million. What this tells us is that India is hugely important for YouTube and, by extension, its parent company.
The business has a major edge in the country too. With Chinese mega-app TikTok having been banned in India three years ago, the short-form video content space is missing a major competitor. YouTube’s “Shorts” feature is going a long way to filling this void, helping the company to maintain its huge numbers of viewers in the country.
Snap Inc (NYSE: SNAP) is another business we must discuss when touching on short-form video. Snap has also become hugely popular in India, with figures from Statista showing that its user base is 59% higher than that of the United States.
If nothing else, this is a testament to how crazy about social media the Indian population is! But there is still room to grow, according to forecasts.
Projections from Statista indicate that, following a ninth consecutive annual increase in user base, the platform will reach 158.63 million users and therefore a new peak in 2027.
But how is the company seeking to capitalize on this user base?
Like QYOU Media, the company has recently appointed an industry star to run its Indian operations in the form of former Google executive Pulkit Trivedi. With sagging revenues, the app is reportedly targeting India for new growth amid efforts to localize services and shore up ad revenues.
India is a massive prospect for social media-savvy companies. But there are multiple routes to taking advantage of this exciting opportunity. QYOU Media has achieved consistent quarterly YoY revenue growth and has brought in a social media whiz to push things to the next level. Meta Platforms is rolling out subscription fees and new ad technology, while Alphabet is taking advantage of short-form video. Finally, Snap is trying to solve the puzzle of its lagging revenues through localization.
IMPORTANT NOTICE AND DISCLAIMER
This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the “Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by QYOU Media Inc. to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of one hundred and twenty five thousand US dollars to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher’s ability to provide unbiased information or opinion.
CHANGES IN SHARE TRADING AND PRICE
Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.
NO OFFER TO SELL OR BUY SECURITIES
This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.
Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy. Any statements made should not be taken as an endorsement of analyst views.
NO FINANCIAL ADVICE
The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual’s financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.
FORWARD LOOKING STATEMENTS
This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company’s actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company’s operations; the size and growth of the market for the company’s products and services; the company’s ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company’s business.
INDEMNIFICATION/RELEASE OF LIABILITY
By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.
All trademarks used in this communication are the property of their respective trademark holders. Other than valuethemarkets.com, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than valuethemarkets.com.
valuethemarkets.com and Digitonic Ltd and our affiliates are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above. This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.ValueTheMarkets do not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. ValueTheMarkets have been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of valuethemarkets.com, has been paid for the production of this piece by the company or companies mentioned above.
+44 141 530 4080