Mickey Mouse still has some pull on Madison Ave.
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Walt Disney Co. said it was able to secure a higher level of ad commitments in the 2024 “upfront” ad sales market, noting its volume of ad deals was up 5%. Disney did not provide a total amount of dollars committed for 2024 or 2023. In the “upfront,” U.S. media companies try to sell the bulk of their commercial inventory ahead of the launch of their next cycle of programming.
The figure is significant because U.S. media companies have been grappling with significant pressures this year. The TV networks continue to lose the large linear audiences that have given them the ability to command the highest commercial price in media. Meanwhile, a glut of new streaming inventory has come into the market, thanks to the launch of ad-supported tiers by both Nettflix and Amazon Prime Video.
“Our growth in the number of marketers we work with and the increased investments in advertising innovation, demonstrates Disney’s differentiator,” said Rita Ferro, president of global advertising for Disney, in a prepared statement. “As we double down on our commitment to world-class storytelling, automation, and new ad products, demonstrating growth for partners underpins our focus for the future.”
Disney raised eyebrows this year by offering to “rollback” Disney+ rates in the cost of reaching 1,000 viewers, a measure known as a CPM that is essential to these annual negotiations between TV networks and advertisers. According to media buyers and other executives, Disney in some cases agreed to reduce CPMs for Disney+ by as much as 10% to 15%. In exchange for the lowered rates, Disney was able to secure deals that called for a certain level of volume of ad support across its portfolio.
Like other companies that have offered shallow peeks at this year’s upfront performance, Disney said advertisers gravitated most to sports offerings and streaming video. Volume in multi-year sports deals was up in a double-digit percentage range, Disney said, while ad commitments to women’s sports were “up triple-digits vs last year’s upfront.”
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Streaming ad commitments rose 10%, Disney said, across Hulu and Disney+, bolstered by a new offering that allowed marketers to buy across the company’s broader portfolio of apps.
Ad commitments tied to reaching multicultural audiences rose 15%, Disney said, with media buyers “spending intentionally around diverse audiences.”
Disney said it saw robust interest from marketers of foreign autos; beverages; foods; personal care; financial services; hotels and vacation rentals; and quick-service restaurants.
More to come…
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