With fractional production costs & ad rates just 15% of long-form shows, microdramas see surge in brand interest

A shift is underway in the Indian content ecosystem— and it’s vertical, short, and emotionally gripping. Microdramas, or ultra-short fictional series tailored for mobile screens, are rapidly emerging as a go-to format for content platforms targeting Gen Z and Tier 2+ audiences, and is expected to reach $10 billion by 2030. But while audience appetite is high and advertiser curiosity is rising, monetisation is still catching up— especially when compared to established OTT long-form content.

In terms of advertising rates, microdramas currently command CPMs in the range of Rs 800 to Rs 2,000 per 1,000 impressions—far below the Rs 1,100 to Rs 4,000 CPMs typically charged for full-length web series. For context, YouTube’s CPM sits around $5 (~₹415), a benchmark that microdramas have yet to consistently reach.

Karan Taurani of Elara Capital pegs current microdrama ad rates at “10–15% of other OTT content,” noting that the format hasn’t yet reached the scale required to demand higher prices.

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Despite the low rates, advertiser interest is brewing. Platforms like ALTBalaji (which recently launched its microdrama vertical Kutingg), RVCJ, ShareChat, and the upcoming JO vertical from Jojo are seeing promising early signals—thanks in large part to high user engagement.

According to Dhruvin Shah, CEO of Jojo, vertical pilots on their platform have seen daily watch times more than double from 45–60 minutes (for long-form) to over 90 minutes, reflecting microdramas’ binge-worthy appeal.

Microdramas offer a unique canvas for brand integration.

These snackable narratives typically run under 5 minutes per episode, are produced within a week, and cost around Rs 10,000 per minute—far more efficient than traditional content creation cycles. This cost advantage has made microdramas an attractive content investment for platforms aiming to scale volume rapidly across languages and regions. Hindi, Telugu, Kannada, and Bengali microdramas are already in circulation, often spanning genres from romance and drama to mythology and thrillers.

“Content consumption is evolving, especially in smaller towns,” said Nitin Burman, CRO of Balaji Telefilms. “Short, conclusive, emotionally engaging formats that tap into the swiping habits of Gen Z are what’s driving the format’s popularity.”

He expects the micro-drama segment to reach around $10 billion by 2030.

For advertisers, microdramas offer a unique canvas for brand integration. Instead of relying on pre-roll ads or banners, brands can now become part of the story itself—resulting in higher recall and more authentic consumer connections. Adds an advertiser, “With vertical content, you’re not just placing an ad, you’re becoming part of the experience. That’s a big advantage over conventional ads.”

Microdrama series typically command ad rates in the range of Rs 800 to Rs 2,000 per 1,000 impressions (CPM). These rates are attractive for advertisers targeting younger, urban audiences who prefer quick, snackable content on platforms like Instagram Reels, YouTube Shorts, and MX TakaTak, adds an FMCG marketer.

On the other hand, traditional long-format web series, which are usually hosted on OTT platforms such as Netflix, Amazon Prime Video, and Disney+ Hotstar, attract higher CPMs generally between Rs 1,100 and Rs 4,000 for streaming platforms, and even higher for premium slots on cable or broadcast TV, where a 10-second prime time spot can cost anywhere from Rs 1.5 lakh to Rs 4 lakh. This premium is due to longer viewer engagement, established audience bases, and the perception of high-quality, appointment-viewing content.

Advertisers are willing to pay more for these placements, given the broader reach and deeper impact. While micro-drama series offer a cost-effective entry point for brands and are rapidly gaining traction among mobile-first viewers, traditional long-format series continue to command higher ad rates due to their established value proposition and audience loyalty.

According to Manohar Singh Charan, Co-Founder & Chief Financial Officer, ShareChat & Moj micro-dramas represent a highly engaging format for advertisers that delivers consistent, leaned inattention of audiences during varied times of the day as against the traditional TV or OTT surface where most user engagement is during pre-set hours of the day…usually day end laid back viewing sessions. This ability to tap user attention during multiple windows and in different frames-of-mind allows for seamless brand storytelling. This offer brands not just impressions, but genuine cultural relevance and narrative integration.

Still, challenges persist. Platforms acknowledge that monetisation models are still evolving. Monetisation models for micro-dramas are still evolving, with a mix of ads, micro-payments, and subscription options being explored by platforms.

While some rely on freemium access—offering initial episodes free with later content behind ad views or micro-payments—others are experimenting with VIP subscriptions or coin-based unlocks. RVCJ reports growing interest in these models, especially among younger female audiences who constitute up to 70% of viewers on some shows.

With over 120 million daily episode views, Moj and ShareChat have adopted a dual monetisation approach—offering ad-free subscription-based experience through its new app, QuickTV, while simultaneously enabling free access to ad-supported micro-dramas at scale.

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However, as Burman points out, one of the biggest hurdles is competing with user-generated content (UGC) on YouTube Shorts and Instagram Reels. These platforms already have massive consumer bases and no dearth of short-format content, making it tougher for professionally produced microdramas to cut through.

Creative adaptation is another sticking point. Brands can’t simply repurpose their TVCs for vertical formats. Tighter, narrative-aligned storytelling is needed—something that demands more strategic planning than traditional ad buys.

Yet success stories elsewhere are offering a glimpse into the format’s potential. Skincare brand Kans saw over 5 billion views and measurable sales growth from its microdrama campaigns.

Despite lower CPMs today, industry watchers are optimistic that ad rates will grow as scale and audience consistency increase. Shah’s platform JO, for instance, is building AI-led storytelling capabilities and subscription layers to enhance content value and monetisation.

As platforms continue to refine monetisation models and deliver higher production quality, microdramas could soon become more than a novelty— they could be the next battleground for brand storytelling.