Investment Rating - The report does not explicitly state an investment rating for the micro-drama industry. Core Insights - The micro-drama industry has seen a significant increase in brand collaborations, with a 94% year-on-year growth in the number of micro-dramas produced in the first three quarters of 2024. The beauty industry has experienced a 17 percentage point decrease in market share [2][16]. - The average number of episodes for brand micro-dramas has decreased to 6.4, with 80% of brand micro-dramas consisting of fewer than 10 episodes, indicating a trend towards shorter content [2][9]. - Key marketing strategies include high-frequency advertising during critical events such as product launches and major sales promotions, which have proven effective in driving brand growth [2][19]. Summary by Sections Q3 Micro-Drama Content Market - The average number of episodes for brand micro-dramas has decreased from 8.7 in Q1 to 6.4 in Q3, with "6 episodes" becoming a common choice among brands [9][11]. Q3 Micro-Drama Marketing Market - The majority of collaborations in Q3 involved mid-tier and top-tier influencers, with over 90% of creators having more than 1 million followers [21]. - New brands entering the micro-drama space accounted for nearly 60% of the total, with significant participation from the food and beverage, beauty, and personal care sectors [13][14]. Q3 Micro-Drama Industry Dynamics - The industry is witnessing an expansion of marketing boundaries, with leading brands increasingly investing in micro-drama marketing [2][25]. - Various media platforms are collaborating to enhance the micro-drama ecosystem, including initiatives from television networks and online streaming services [28][30]. Brand Collaboration and Marketing Strategies - The report highlights that brands are leveraging micro-dramas for promotional activities, particularly during key sales events like the Tmall 88 Membership Festival [38]. - The top brands in Q3 included Tmall, which produced 10 micro-dramas with a total brand volume of 337.9 million, followed closely by beauty brands like 韩荣 and 目需羚 [23]. Policy and Industry Support - Local governments are implementing supportive policies to foster the healthy development of the micro-drama industry, including financial incentives and improved business environments [26][27].