Donovan Edwards #7 of the Michigan Wolverines interferes with 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 Sports | Getty 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 are more connected to the game. As a result, Disney's TV networks that broadcast college football — including ABC, ESPN and ESPN2 — are on track for their most-watched season since 2016, the company said.
This has translated into greater viewer engagement with the commercials airing during the games, according to EDO, an advertising data company. That's expected to continue this Thanksgiving weekend, a busy stretch of the college football calendar that's chock-full of rivalries and will shape playoff seedings and upcoming Bowl games.
The 14th and final weekend of the season will see old rivals like Ohio State and Michigan, and Texas and Texas A&M take the field.
“We have higher expectations, I think, and higher expectations for next weekend because of that change in format,” EDO CEO Kevin Krim said of ad engagement on the Disney networks. “The meaning of these games matters, in our experience, in the data.”
In 2022, university presidents who oversee the College Football Playoff voted to expand the postseason system that determines the national champion from four to 12 teams. The change has not only given Disney more games on the schedule, but has also increased the intrigue surrounding the games earlier this season.
“College football is an important part of our portfolio, not just the sports portfolio, but our Disney platform portfolio. From an ad sales and content standpoint, we've had incredible success,” said Jim Minnich, senior vice president of Disney Advertising. revenue and returns management, citing “record-breaking viewership across the company's platforms.”
ABC in particular is on pace to have its best college football ratings season since 2009. The company said 12 of the 15 most-watched games this season were on the broadcast network.
According to EDO, consumers were 11% more likely to see ads during college football games on Disney networks this season through week 10, compared to the competitive primetime average for broadcast and cable. That means people were more likely to search for products and deals they saw during the commercial breaks, making those slots more valuable to advertisers.
Amari Daniels #5 of the Texas A&M Aggies controls the ball while being 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 | Getty Images
In particular, Thanksgiving weekend gaming ad performance on the Disney networks is expected to rise sharply again this year after an already strong 2023, EDO estimates. The company reported that ads during Disney games last year were 93% more effective than programming that occurred in the same time slot on other networks – which also represented a 39% increase year over year.
Some of the brands seeing particularly strong consumer engagement during college football games on Disney's channels include consumer packaged goods brands such as Jimmy Dean and Just for Men; restaurants like Popeyes; and pharmaceutical products such as AbbVie's Skyrizi, EDO said.
These are remarkable figures as the media industry faces significant turmoil. Consumers are fleeing the pay-TV bundle, and the changes media companies have made in recent years – particularly a shift of resources to streaming platforms – are in more focus than ever. Companies also rely on advertising more than ever.
Disney has already seen “significant demand for renewals” from its College Football Playoff partners, with some more likely to renew for 2027 and beyond, Minnich said.
“There is a renewed interest sooner than ever,” Minnich said, adding that it is being driven by both the College Football Playoff and sports more broadly.
On the advertising front, Disney is selling out the conference championship games. It has also sold about 90% to 95% of the ads for the College Football Playoff games.
“We're actually outsold in the championship game than we have been in recent years,” Minnich said. “We are ahead of the pace last year, and so is the growth forecast for CFP.”
Live sports is still the last bastion of solid ratings for TV networks. The National Football League is often the leader in viewership and advertising, with college football a close second. Even as the advertising market has weakened in recent years, advertisers have continued to spend money on sports.
“Football is generally the most expensive thing on TV because it generates a larger audience that is more engaged with both the program and the commercial breaks than anything else on TV. The NFL is the absolute top of the mountain of value, but right behind that is college football,” Krim said.
In response, media rights for sports have exploded across the board.
Since Disney is home to all Southeastern Conference football games, this has also been a boon to advertising demand. The media company will reportedly pay approximately $300 million annually for SEC dues over the next decade.
ESPN and the College Football Playoff announced in March that they had agreed to a six-year, $7.8 billion contract for the 2031-32 season. Shortly afterwards, Warner Bros. Discovery signed a five-year sublicense agreement with ESPN to broadcast first-round and quarterfinal College Football Playoff games.
College football also plays a big role for Disney's competitors, including Paramounts CBS Sports, Fox Corp.And Comcast's NBC Sports.
Krim said college football is more effective than average programming on all networks that show the games.
Disclosure: Comcast's NBCUniversal is the parent company of CNBC.