Digital Turbine Inc.
01/13/2025 | News release | Distributed by Public on 01/13/2025 13:27
Short Episode, Big Revenue: Short Drama Apps See 55% Growth with DT
What is a short drama?
China National Radio and Television Administration defines online short drama as "online literary and artistic forms with episode lengths ranging from tens of seconds to about 15 minutes, having relatively clear themes and main storylines, and relatively continuous and complete plot narratives."
According to the "2023-2024 China Micro Short Drama Market Research Report" released by iiMedia Research, in 2023, China's online short drama market size reached nearly 37.4 billion yuan (over $5 billion), with a year-on-year growth of nearly 268%. The market size is expected to exceed 50 billion yuan (nearly $7 billion) in 2024 and surpass 100 billion yuan (nearly $14 billion) by 2027.
In 2024, China's short drama overseas market size has rapidly expanded, with the total revenue of overseas short drama platforms exceeding 2.3 billion yuan (over $300 million) in the first half of the year, and is expected to reach over 4 billion yuan (over $500 million) for the full year. The U.S. market has shown particularly outstanding performance while emerging markets such as Latin America, the Middle East, and North Africa also demonstrate huge growth potential. This data demonstrates the global popularity and commercial value of Chinese short dramas.
The number of short drama apps has also seen explosive growth, with a 30% increase in the overseas app rankings in 2024 year-over-year, presenting a massive opportunity for both publishers and advertisers to tap into this rapidly expanding market.
Here are a few tips on how to optimize your short drama app's monetization strategy:
Know Your Audience
The primary demographic for short drama apps skews female (60%), particularly among users aged 24 and above. Using your demographic insights when tailoring both ad content and monetization strategies will make both content and the ad experience more engaging, boosting your revenue and LTV.
Ways to Monetize
- In-App Purchases (IAP): Implement a virtual currency system that encourages users to purchase premium content with micro transactions
- In-App Advertising (IAA): Utilize a combination of programmatic advertising and an offer wall to maximize revenue and monetize non-payers.
Programmatic Formats that Fit
- Rewarded Video to earn currency and content
- Interstitials in natural breaks of content
- Banners to capture brand dollars - brand's choice!
Engage, Reward, Monetize with DT Offer Wall
- Monetize non-paying users by offering task-based rewards in exchange for virtual currency
- Enhances user engagement and retention
- Creates incremental revenue stream
Setting Up for Success from the Get-go
- Focus on ad content and rendering quality: localization, rendering control, and local demand are your best friends
- Conduct in-depth user analysis and apply appropriate tags
- Optimize ad placements and frequency
- For non-paying users, increase ad exposure rates and incentivize users to generate revenue through watching ads
- Leverage the algorithmic capabilities of your advertising platforms to ensure that ad content aligns with user preferences, maintaining a positive user experience.
Growth Opportunities
With short drama content production showing a 10x YOY growth in Q1 2024, publishers have a unique opportunity to capitalize on this momentum. The key is to balance monetization strategies while maintaining user engagement and satisfaction.
Pro Tip: Consider implementing both DT Exchange and DT Offer Wall to create a comprehensive monetization strategy that caters to both paying and non-paying users.
Next Steps
To maximize your short drama app's potential:
- Analyze your current user demographics
- Implement a hybrid monetization strategy
- Test different ad formats and placements
- Monitor user engagement metrics
- Optimize based on performance data
By following these strategies and leveraging Digital Turbine's solutions, short drama app publishers can create a sustainable and profitable app ecosystem while maintaining user satisfaction and engagement.