Microdrama Platforms Shift Focus to Marketing Over Production
One of the marquee panels at Mip London drew a full house as executives revealed that microdrama platforms are devoting as much as 90% of their budgets to marketing rather than production, underscoring how the fast-growing short-form storytelling sector is evolving into a user-acquisition business that increasingly resembles mobile gaming.
“Ninety percent of the budget goes to marketing,” said Timothy Oh, general manager of COL Group International, describing how companies test thousands of trailer variations across social platforms to drive downloads.
Oh said the economics of the sector closely mirror gaming models, where success depends primarily on acquiring and retaining users rather than on production scale. “Promoting short drama is the same as promoting any games,” he said, noting that teams continuously experiment with large volumes of advertising clips to optimize performance.
Anatolii Kasianov, co-founder and co-CEO of Holywater, said acquisition costs can reach $20 to $30 per install, forcing companies to rely heavily on data analytics and artificial intelligence to manage spending efficiently. “You need to be extremely efficient,” he said, explaining that AI tools are used to automate trailer creation and analyze marketing performance.
The discussion, part of the “MicroDrama 2026: The Global Breakout” session, focused on the business mechanics behind the rapidly expanding format of one- to two-minute narrative episodes designed primarily for mobile viewing.
Maria Rua Aguete, head of media and entertainment at Omdia, said the format’s growth is tied to broader shifts in viewing behavior. “Seventy-five percent of video consumption takes place on a smartphone,” she said, adding that even older audiences are increasingly watching video on mobile devices.
She also noted that monetization relies heavily on microtransactions, with viewers often discovering microdramas through free clips on social media before paying incremental fees to unlock episodes.
Executives said these payment structures further reinforce parallels with gaming economics, where revenue is driven by frequent small payments rather than traditional subscription models.
At the same time, panelists said the sector is evolving beyond its early focus on low-cost romance content and is beginning to attract higher-profile creative partnerships.
Alex Montalvo, co-founder and chief content officer of GammaTime, said platforms are expanding into genres such as thrillers and true crime while collaborating with established creators and adapting premium intellectual property. “This really is just the beginning of what is possible in this medium,” he said.
As competition intensifies globally, executives said the next phase of growth will depend on balancing aggressive user acquisition strategies with broader content ambitions.
“Don’t shun the format, embrace it,” Montalvo said.
