In 1994, AT&T placed the world’s first online banner ad in Hotwired magazine, marking the beginning of digital advertising. Fast forward to today, where the digital advertising market is projected to reach $19.2 billion by 2026. In this landscape, Indian startup Inshorts has made a notable impact, potentially disrupting the industry for Indian advertisers.
Inshorts’ Journey:
- Early Years (2013-2015): Inshorts started as a Facebook page in 2013, providing news in a concise 60-word format. It quickly gained popularity, leading to the launch of a dedicated app that garnered one million downloads in six months.
- User-Centric Approach: Despite its popularity, Inshorts refrained from running ads on its platform for the first three years. The focus was on building for users rather than advertisers, with personalized news delivery in a fact-based 60-word format.
- Entry into Advertising (2016): Inshorts entered the advertising space in 2016 with its first ad featuring Airtel. By 2018, the platform had partnered with over 100 clients, including prominent brands like Netflix, Maruti Suzuki, MRF, and Audi.
- Maintaining Principles: Inshorts maintained its principles throughout its advertising journey. The emphasis remained on active and engaged users, with metrics such as shorts read per day considered crucial. The platform remained transparent with advertisers, avoiding false promises and offering clear demarcation for brand awareness and engagement.
- Innovation in Ad Formats: Inshorts focused on innovation in ad formats, moving beyond traditional display ads. The platform introduced more than six ad formats, experimenting with native, engaging, and personalized solutions for different industries.
- Revenue Growth: By following its principles, Inshorts achieved significant revenue growth, reaching $10 million in ARR from ads in 2019, with projections indicating it could surpass $30 million ARR by 2022.
Survival and Evolution:
- User-First Approach: Inshorts prioritizes user experience, avoiding excessive ads that could compromise user satisfaction. The platform’s zero-tolerance for poor user experience includes options for personalized feeds and relevant content.
- Ad Formats and Placement: Inshorts’ ad formats seamlessly blend with the content, ensuring engagement. Popular ad formats include 60-word native ads, fact cards for engagement and awareness, magazine cards for extended engagement, and interstitial ads for awareness.
- Industry-Specific Customization: Inshorts tailors its advertising offerings for industry-specific use cases. For example, it created a live market replica for crypto trading platforms, demonstrating an innovative approach.
- Localization and Targeting: The platform is working on providing multiple language options to expand its reach. Inshorts acquired Retention.ai in 2017 to understand user patterns and behavior better, enabling effective targeting for advertisers.
- Clear Communication with Advertisers: Maintaining transparent communication with advertisers is crucial for Inshorts. The platform provides creative layouts and ideas, setting clear expectations from day one.
Future Strategies:
- Innovation in Ad Formats: Inshorts plans to continue its focus on ad format innovation, improving click-through rates (CTR), introducing graphical and infographic representation ad formats, and optimizing the number of ads per user.
- Geographical Expansion: The platform aims to expand to more geographies, offering content in multiple languages to tap into diverse markets.
- Diversification of Clients: Inshorts plans to diversify its portfolio of clients beyond those focused on awareness, exploring formats or placements that lead to conversions at scale. This could open avenues for smaller brands and recurring revenue.
Inshorts’ success hinges on maintaining a balance between user experience and revenue generation, and its strategic approach to advertising has positioned it as a key player in the Indian digital advertising landscape.