China's Video Ad Shift: From Drama to Variety Shows

In April 2026, the CEO of iQIYI, Gong Yu, made a bold statement at the iQIYI World Conference. He observed that the market for long-form dramas, or 'long dramas,' has been slowing down significantly. This trend is not just a passing phase but a shift that is gaining traction across the industry. Gong Yu's prediction that AI technology is fueling the rapid growth of short-form dramas, and that the future of long-form drama advertising will increasingly flow towards reality-based variety shows, is becoming a widely accepted consensus among industry professionals. This shift is reshaping the landscape of video content in China.

The rise of variety shows as a stable source of advertising revenue for long-form video content is a testament to their popularity and appeal. Despite facing challenges such as content competition and budget constraints, variety shows have managed to hold onto their commercial viability. This is particularly evident when considering the decline in both production capacity and popularity of long-form dramas. The departure of advertisers from long-form dramas is not a choice but a survival instinct in the changing market dynamics.

Variety shows in China often feature a mix of comedy, singing, dancing, and other entertainment formats. They are a blend of traditional Chinese culture and modern entertainment trends. These shows often showcase the talents of Chinese celebrities, who are akin to Western equivalents like Taylor Swift or Beyoncé in terms of their global appeal and influence. For instance, stars like Yang Di, Xu Zhisheng, and Yang Chaoyue are well-known for their charismatic performances and have a massive following both in China and internationally. Their personalities and styles are comparable to Western celebrities like Justin Bieber or Kim Kardashian, who are known for their dynamic and engaging public personas.

The variety show format is also a reflection of the vibrant urban life in China. Cities like Shanghai, Beijing, and Guangzhou are hubs of cultural and entertainment activities, where these shows are often filmed. These cities are known for their modern architecture, bustling streets, and rich culinary scenes. For example, Shanghai's iconic skyline and its diverse culinary offerings, ranging from traditional Chinese dishes like Peking duck to international cuisine like sushi and pizza, provide a backdrop that is both visually stunning and culturally diverse.

In terms of technology, the rise of AI in the entertainment industry has been a game-changer. AI is being used to create short-form content, analyze audience preferences, and even generate scripts for variety shows. This technological advancement is not only making content production more efficient but also allowing for more personalized and engaging experiences for viewers.

The shift towards variety shows also reflects the evolving tastes of Chinese consumers. As the middle class grows, there is an increasing demand for entertainment that is both entertaining and reflects contemporary Chinese values. This is evident in the themes and content of variety shows, which often touch on social issues, cultural heritage, and personal aspirations.

In conclusion, the shift from long-form dramas to variety shows in China's video advertising landscape is a significant trend that reflects the changing dynamics of the entertainment industry. With the help of AI technology and the evolving tastes of consumers, variety shows are poised to become the dominant form of entertainment in the years to come.