Disney sees a 5% increase in upfront ad sales commitments
Mickey Mouse still has some influence on Madison Ave.
Walt Disney Co. said it could secure a higher level of advertising commitments in the ‘upfront’ ad sales market in 2024, noting that the volume of advertising deals increased by 5%. Disney has not provided a dollar total for 2024 or 2023. Early on, U.S. media companies are trying to sell off most of their commercial inventory before the launch of their next programming cycle.
This figure is significant because US media companies have faced significant pressure 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 plethora of new streaming inventory has hit 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 increased investment in advertising innovation demonstrate Disney’s differentiator,” said Rita Ferro, president of Global Advertising for Disney, in a prepared statement. “As we redouble our commitment to storytelling, automation and new world-class advertising products, demonstrating growth for partners underpins our focus for the future.”
Disney raised eyebrows this year by offering to roll back Disney+ fees on the cost of reaching 1,000 viewers, a measure known as a CPM that is key to these annual negotiations between TV networks and advertisers. In some cases, Disney agreed to cut Disney+ CPMs by as much as 10% to 15%, according to media buyers and other executives. In exchange for the reduced rates, Disney was able to secure deals that required a certain level of advertising support within its portfolio.
Like other companies that gave a cursory view of this year’s performance, Disney said advertisers were most attracted to sports offerings and streaming video. Multi-year sports deal volume increased by double digits, Disney said, while advertising commitments for women’s sports “were up triple digits compared to last year.”
Streaming ad commitments rose 10%, Disney said, on Hulu and Disney+, boosted by a new offering that allowed marketers to buy the company’s broader portfolio of apps.
Advertising commitments related to reaching multicultural audiences rose 15%, Disney said, with media buyers “intentionally spending on diverse audiences.”
Disney said it saw strong interest from foreign car marketers; drinks; foodstuffs; personal care; financial services; hotels and holiday homes; and quick-service restaurants.
More to come…
