One of Mip London’s featured panels was sold out as executives revealed that the microdrama platform spends 90% of its budget on marketing rather than production, highlighting how the fast-growing short-form storytelling sector is evolving into a user acquisition business akin to mobile gaming.
“Ninety percent of the budget goes to marketing,” said Timothy Oh, general manager of COL Group International, explaining how the company is testing thousands of trailer variations across social platforms to drive downloads.
Oh said the economics of the field closely mirror the gaming model, with success largely dependent on user acquisition and retention rather than production scale. “Promoting a short drama is like promoting any other game,” he said, noting that the team is continually experimenting with a large number of ad clips to optimize performance.
Anatoly Kasyanov, co-founder and co-CEO of Holy Water, said acquisition costs could reach $20 to $30 per installation, forcing companies to rely heavily on data analytics and artificial intelligence to effectively manage spending. “We need to be very efficient,” he said, explaining that AI tools are being 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 changes in viewing behavior. “75% of video consumption is done on smartphones,” she said, adding that even older viewers are increasingly watching videos on mobile devices.
She also pointed out that monetization relies heavily on microtransactions, and viewers often discover microdramas through free clips on social media before paying incremental fees to unlock episodes.
Executives said these payment structures further strengthen similarities with gaming economies, where revenue is driven by frequent micropayments rather than traditional subscription models.
At the same time, panelists said the sector has evolved beyond its initial focus on low-cost romance content and is starting to attract more high-profile creative partnerships.
Alex Montalvo, co-founder and chief content officer of GammaTime, said the platform is expanding into genres such as thrillers and true crime, while collaborating with established creators and adapting premium intellectual property. “This is really just the beginning of what’s possible with this medium,” he said.
As competition intensifies globally, executives said the next stage of growth will depend on balancing an aggressive user acquisition strategy with broader content ambitions.
“Rather than shun this format, embrace it,” Montalvo said.
