College football has proven to be a resilient sector for media companies, particularly Disney, despite a downturn in the advertising market.
The sport's ability to attract large and engaged audiences has made it a valuable asset for advertisers. Disney has made significant financial commitments to college football, including a reported $300 million annually for Southeastern Conference (SEC) rights over the next decade and a $7.8 billion contract with ESPN for the College Football Playoff.
The recent expansion of the playoff format to a 12-team system has further increased interest in the sport, leading to a surge in viewership across Disney's networks. This season is on track to be the most-watched for college football since 2016. The expanded playoff format has also resulted in higher engagement with advertisements during games.
Data from EDO, an advertising analytics firm, shows that consumers are 11% more likely to engage with ads during college football games on Disney networks compared to other prime-time programming. Brands that advertise during college football games have reported strong consumer engagement, making these advertising slots highly sought after. The effectiveness of ads on Disney's networks during college football broadcasts has been quantified, with reports indicating they were 93% more effective than ads on competing networks during the same time slots last year.
This success in the college football arena reflects a strategic alignment with consumer interests. The financial dynamics surrounding college football highlight the importance of live sports for traditional television networks in maintaining advertising revenue. Disney's focus on college football has resulted in record-breaking viewership across its platforms, leading to increased interest from partners for future advertising deals.
The resilience of college football serves as a case study in how traditional media can adapt to changing consumer preferences, with the sport's ability to draw large audiences and engage viewers effectively positioning it as a cornerstone of advertising strategy for major networks.