Donovan Edwards #7 of the Michigan Wolverines blocks a tackle attempt by Michael Taaffe #16 of the Texas Longhorns during the first half of a college football game at Michigan Stadium on September 7, 2024 in Ann Arbor, Michigan.
Aaron J. Thornton | Getty Images Sport | fake images
The expanded College Football Playoff format has changed the game for media companies this season, and for disney In particular.
This season marks the first of the 12-team College Football Playoff format, meaning fans of more teams than ever have more involvement in the game. As a result, Disney's television networks that broadcast college football, including ABC, ESPN and ESPN2, are on track to have their most-watched seasons since 2016, according to the company.
This has resulted in greater audience engagement with commercials aired during games, according to EDO, an advertising data company. This is expected to continue through this Thanksgiving weekend, a busy stretch in the college football calendar that is packed with rivalries and will shape playoff seeding and upcoming Bowl games.
During the 14th and final weekend of the season, long-time rivals Ohio State and Michigan, and Texas and Texas A&M will take the field.
“I think we have higher hopes and expectations for next weekend because of that format change,” EDO CEO Kevin Krim said of advertising participation on Disney networks. “The importance of these games matters, in our experience, in the data.”
In 2022, university presidents who oversee the College Football Playoffs voted to expand the postseason system that determines the national champion from four to 12 teams. The change has not only offered Disney more games on its schedule, but has also increased the intrigue surrounding games earlier in the season.
“College football is a key cog in our portfolio, not only in the sports portfolio but also in our Disney platform portfolio. From an advertising sales and content perspective, we have been incredibly successful,” said Jim Minnich, senior vice president of advertising at Disney. revenue and performance management, highlighting “a record audience across all the company's platforms.”
ABC in particular is on track to have its best college football ratings season since 2009. The company said 12 of the 15 most-watched games were on the broadcast network this season.
Consumers were 11% more likely to engage with ads during this season's college football games on Disney networks through Week 10 compared to the competitive primetime broadcast and cable average, according to EDO . That means people were more likely to search for products and deals they saw during commercial breaks, making those slots more valuable to advertisers.
Amari Daniels #5 of the Texas A&M Aggies runs the ball as it is defended by Marvin Burks Jr. #1 of the Missouri Tigers in the first quarter at Kyle Field on October 5, 2024 in College Station, Texas.
Tim Warner | fake images
In particular, Thanksgiving weekend advertising performance for a host of games on Disney networks is expected to rise again this year, after an already strong 2023, EDO estimates. The firm reported that ads during Disney games were 93% more effective last year than programming occurring at the same time on other networks, which also represented a 39% year-over-year increase.
Some of the brands seeing particularly strong consumer engagement during college football games on Disney channels are consumer packaged goods brands like Jimmy Dean and Just for Men; restaurants like Popeyes; and pharmaceuticals like AbbVie's Skyrizi, according to EDO.
These are notable metrics as the media industry faces significant upheaval. Consumers are fleeing the pay-TV package and the changes media companies have made in recent years (particularly a shift of resources towards streaming platforms) are more in the spotlight than ever. Companies are also relying more than ever on advertising.
Disney has already seen “significant demand for renewals” for its College Football Playoff partners, with some wanting to renew early for 2027 and beyond, Minnich said.
“There's renewed interest earlier than ever,” Minnich said, adding that it's driven by both the college football playoffs and sports in general.
On the advertising front, Disney is sold out of its spots during the conference championship games. It also sold 90% to 95% of the ads for college football playoff games.
“We're actually more confident in the championship game than in previous years,” Minnich said. “We are ahead of last year's pace, and that includes the growth that was projected for the CFP.”
Live sports remain the last bastion of strong ratings for television networks. The National Football League is typically the leader in viewership and advertising, closely followed by college football. Even though the advertising market has weakened in recent years, advertisers have continued to invest in sports.
“American football is generally the most expensive thing on television because it generates larger audiences that are more engaged with both the show and the ad breaks than anything else on television. The NFL is the absolute pinnacle of the value mountain, but right behind it is college football,” Krim said.
In response, media rights for sports have skyrocketed across the board.
The fact that Disney is the home of all Southeastern Conference football games has also been a boon for advertising demand. The media company will reportedly pay around $300 million a year for SEC rights over the next 10 years.
ESPN and the College Football Playoff announced in March that they had agreed to a six-year, $7.8 billion deal through the 2031-32 season. Shortly after, Warner Bros. Discovery signed a five-year sublicensing agreement with ESPN to broadcast first-round and quarterfinal games of the College Football Playoffs.
College football also plays an important role for Disney's competitors, including paramount cbs sports, Fox Corp.and Comcast NBC Sports.
Krim said college football is more effective than average programming on all the networks that show the games.
Disclosure: Comcast's NBCUniversal is the parent company of CNBC.
