Reportedly now that TikTok and 58 other Chinese apps are banned in india, there is talk of building replacements apps within the country. On saturday night Infosys co-founder Nandan Nilekani told india Today tv that building apps like TikTok is certainly possible within India. The bigger problem is not the building of apps, he said, but getting the business model right and in place because india is still not a very big wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital advertising market and apps like TikTok are fuelled by advertising.

“We certainly can build our own tik tok and other apps in India. But the challenge here is slightly more difficult. You have to understand the business models of these applications. Like facebook and google, TikTok’s main revenue comes from advertisements.

 

The problem is that india is yet to be a big wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital advertising market like china and the US. “India is not a very big advertisement market. Total ad spending in india across tv, print and wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital is around $10-12 billion and in the wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital space it is about $2-3 billion dollars,” said Nilekani. “So, most of these products essentially in india don’t make money. But they are here for strategic reasons because they want to build a large user base.”

 

As far as their present india operations are concerned, they are sort of subsidized by their revenue from other markets, most notably the US and China. Like whatsapp may have 400 million users in india but I don’t think they make a lot of money out of it. So, if you want to have an indian product, they don’t have the revenue from other countries to cross-subsidize. I think it is little more than a technology issue. How do we create an advertisement-led product in india which is sustainable,” said Nilekani.

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